Strategic IT Governance 2.0 Weinzimer provides industry case studies of companies that have implemented multiple components of The Strategic IT Governance 2.0 model. These companies successfully lev‑ eraged collaboration between technology and the business to deliver technology projects that provide the best customer value, improve cost efficiencies, and create a governance culture across business areas. In his book, you will learn valuable lessons to implement an innovative governance model for your company. – Ashley Pettit, CIO, and Senior Vice President, Enterprise Technology, State Farm In Strategic IT Governance 2.0, Phil provides a number of exciting case studies of how CIOs are leveraging technology to innovate and create value. They are following Phil’s model, building strategic and tactical relationships within the business to drive technology growth strategies, collaborating with partners to improve customer service and increase value with process optimization and best practice metrics. Each of these companies offers a slightly different take on the multiple components of the Strategic IT Governance 2.0 model; however, these organizations’ collective and individual success indicates the strength of the components. – Dawn Kirchner-King, Vice President and Chief Information Officer, Armstrong World Industries Today’s business environment is more complicated, creating additional challenges for the successful execution of strategic enterprise projects. Unless an organization revisits its governance model, strategic projects are at risk of negatively impacting business success. So, how do companies succeed in overcoming these obstacles to improve project success? Strategic IT Governance 2.0: How CIOs Succeed at Digital Innovation explains how IT executives can take the lead and successfully drive digital transformation initiatives and associated projects. The book presents the Strategic IT Governance 2.0 model that focuses on project alignment, process reinvention, and leadership excellence. It is filled with case studies of the model’s implementation, giving practical insight into how organizations have successfully executed digital transformation. At the very heart of Strategic IT Governance 2.0 is the notion that there must be a fundamental balance and partnership between the business and IT teams. After nearly 40 years of working to deliver value through strategic IT, I’ve really only learned one thing for certain; When business and IT leaders are linked together in a bond of trust and joint goals, the job is pretty easy, and great things will happen. Rob Carter, Executive Vice President-FedEx Information Services and CIO & Co-president, FedEx Services Reading Phil Weinzimer’s new book “Strategic IT Governance 2.0” is like taking a masters class from the top CIOs in the world. He has created an engaging and informative walk through the strategic imperative of governance driving business and IT alignment to maximize returns for people, processes, and technology. As IT continues to dominate strategic business portfolios, the timing of Phil’s book could not be better, and his emphasis on relationships and collaboration is par- ticularly insightful. Tom Murphy, Senior VP of IT & University CIO-University of Pennsylvania As a CIO, I’ve had the advantage of learning from Phil, and several of the CIOs he profiled in his last book. His frameworks and tools have been invaluable to my teams and me over the last several years! As we collectively move into the metaverse, web3, and beyond the world, I do not doubt that Phil’s thinking on governance will become increasingly important. I encourage you to dig in and dig deep to avoid costly or disastrous leaps into the future tech for your company and take out of this the confidence to move forward with authority. Walt Carter, Chief Digital Officer & CIO, Homestar Financial Corp. Strategic IT Governance is an essential read for today’s CIO and business leaders. Phil masterfully shares the experiences of several leaders and brings together the fun- damental concepts of business value, leadership excellence, IT efficiency, and project/ process excellence. This book is an excellent resource for IT and business leaders as it lays out a roadmap for collaboration and partnership or leveraging technology as a part of the enterprise strategy. Phil… you have done it again…great book. Margaret Brisbane, CIO-Dade County Miami Florida Phil Weinzimer’s Strategic IT Governance 2.0 is a playbook that defines a methodol- ogy, tools, and techniques, and numerous case studies for any organization that’s look- ing to drive customer value by getting the most out of their technology investments. Christopher G. Burger, Founder & Managing Director of Transform Weinzimer reinforces the need for company executives to recognize IT Governance as a major challenge for success in Digital Transformation initiatives. Strategic IT Governance 2.0 provides great case study examples of CIOs and IT/Business teams working together that utilized the Strategic IT Governance 2.0 framework, methodology, and tools, to succeed at digital transformation initiatives. Tony Salvaggio, CEO, CAI, Inc. Strategic IT Governance 2.0 How CIOs Succeed at Digital Innovation Philip Weinzimer First edition published 2023 by CRC Press 6000 Broken Sound Parkway NW, Suite 300, Boca Raton, FL 33487-2742 and by CRC Press 4 Park Square, Milton Park, Abingdon, Oxon, OX14 4RN CRC Press is an imprint of Taylor & Francis Group, LLC © 2023 Taylor & Francis Group, LLC Reasonable efforts have been made to publish reliable data and information, but the author and publisher cannot assume responsibility for the validity of all materials or the consequences of their use. The authors and publishers have attempted to trace the copyright holders of all material reproduced in this publication and apologize to copyright holders if permission to publish in this form has not been obtained. If any copyright material has not been acknowledged please write and let us know so we may rectify in any future reprint. Except as permitted under U.S. Copyright Law, no part of this book may be reprinted, repro- duced, transmitted, or utilized in any form by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying, microfilming, and recording, or in any information storage or retrieval system, without written permission from the publishers. For permission to photocopy or use material electronically from this work, access www.copyright. com or contact the Copyright Clearance Center, Inc. (CCC), 222 Rosewood Drive, Danvers, MA 01923, 978-750-8400. For works that are not available on CCC please contact mpkbookspermis- [email protected] Trademark notice: Product or corporate names may be trademarks or registered trademarks and are used only for identification and explanation without intent to infringe. Library of Congress Cataloging‑in‑Publication Data Names: Weinzimer, Philip, author. Title: Strategic IT governance 2.0 : how CIOs succeed at digital innovation / Philip Weinzimer. Description: First edition. | Boca Raton : CRC Press, 2023. | Includes bibliographical references and index. Identifiers: LCCN 2022018436 (print) | LCCN 2022018437 (ebook) | ISBN 9781032329611 (hardback) | ISBN 9780367342869 (paperback) | ISBN 9781003317531 (ebook) Subjects: LCSH: Information technology--Management--Case studies. | Strategic planning--Case studies. | Chief information officers. Classification: LCC HD30.2 .W4517 2023 (print) | LCC HD30.2 (ebook) | DDC 658.4/038--dc23/eng/20220810 LC record available at https://lccn.loc.gov/2022018436 LC ebook record available at https://lccn.loc.gov/2022018437 ISBN: 978-1-032-32961-1 (hbk) ISBN: 978-0-367-34286-9 (pbk) ISBN: 978-1-003-31753-1 (ebk) DOI: 10.1201/9781003317531 Typeset in Garamond by SPi Technologies India Pvt Ltd (Straive) To my loving wife, Lynn, who has been by my side since High School, nurturing my every whim and sharing a life filled with endless love, adventurous travels, and appreciating the value of patience. Contents Foreword 1: Ashley Pettit ...............................................................................xv Foreword 2: Dawn Kirchner-King ................................................................xix Acknowledgments .........................................................................................xxi About the Author .........................................................................................xxv 1 Introduction ...........................................................................................1 Strategic IT Governance 2.0 Framework ......................................................2 2 The Changing Landscape: The Case for Change ....................................11 Citings .......................................................................................................18 3 Strategic IT Governance 2.0: An Overview ............................................19 Strategic IT Governance 2.0 – A High-Level Overview ..............................22 Business Value Competencies .....................................................................23 Executive Sponsorship and Business and IT Partnership ........................23 Strategic Alignment ...............................................................................25 IT Efficiency Competencies .......................................................................27 Collaboration ........................................................................................27 Process Optimization .............................................................................28 Best Practice Metrics ..............................................................................30 Summary ...................................................................................................31 Citings .......................................................................................................32 4 Digital Transformation Governance Model at Armstrong World Industries: Introduction ........................................................................33 Citings .......................................................................................................35 5 How Armstrong World Industries Focus on Executive Sponsorship, Business/IT Partnership, and Strategic Alignment in Governing Digital Acceleration Initiatives Improved Business Performance...........37 Leveraging the IT Organization .................................................................38 Digital Transformation/Strategic IT Governance at Armstrong World Industries ...................................................................................................39 vii viii ◾ Contents Executive Sponsorship ................................................................................41 Governance Model for Digital Acceleration ...........................................41 Digital Council Members ......................................................................42 Governance Council Key Responsibilities ..............................................43 IT Organization ....................................................................................43 Digital (Focus Area) Steering Committees .............................................43 Business/IT Partnership ....................................................................44 Strategic Alignment ....................................................................................45 How an Idea Becomes a Project–Business Relationship Manager Assignments ...............................................................................................47 How an Idea Becomes a Project – the Process .............................................49 Project Idea Reviewed and Cultivated ....................................................51 Prioritization, Approval, and Resource Planning ....................................51 Project Initiation ...................................................................................51 A Balanced Approach to Strategic Alignment .............................................51 Chapter Summary ......................................................................................53 Citings .......................................................................................................53 6 How Armstrong World Industries Focus on Collaboration, Process Optimization, and Best Practice Metrics to Implement Digital Transformation Projects ........................................................................55 Collaboration .............................................................................................56 Process Optimization .................................................................................57 Project Methodology, Tools, and Techniques .........................................57 Roles and Responsibilities ......................................................................59 Project Administration Structure ...........................................................60 Communication Plan ........................................................................60 Team Documentation ............................................................................61 Project Execution ...................................................................................62 Status Reports/Flash Reports .................................................................62 Issue Log and Dashboard Updates .........................................................63 Project Steering Committee ...................................................................64 Supplier Management ............................................................................64 Supplier/Vendor Classification ...............................................................65 Emerging Supplier/Vendor ....................................................................66 Strategic Supplier/Vendor ......................................................................66 Tactical Supplier/Vendor .......................................................................66 Legacy Supplier/Vendor .........................................................................67 Supplier/Vendor Scorecard ....................................................................67 Meeting Cadence ...................................................................................69 Digital Roadmap ...................................................................................71 Compliance Checklist............................................................................72 Tools for Managing Projects ..................................................................73 Contents ◾ ix Deliverables: Workplans and Flash Reports ............................................74 Change Request Process ....................................................................76 Project Closing Steps .........................................................................77 Best Practices Metrics .................................................................................78 Benefit Metrics ......................................................................................79 Digital Dashboard .................................................................................79 Digital Dashboard for Each of the Three Digital Initiatives....................80 Chapter Summary ......................................................................................80 Citings .......................................................................................................81 7 How State Farm Transformed Its Governance Process to Improve Business Success ....................................................................................83 A Historical Perspective ..............................................................................84 The State Farm Digital IT Transformation Journey ....................................86 How State Farm Incorporates Strategic IT Governance 2.0 Competencies to Achieve IT Transformation ..............................................91 Executive Sponsorship/Business IT Partnerships ........................................91 Strategic Alignment ....................................................................................93 Collaboration/Process Optimization ..........................................................99 Best Practice Metrics ................................................................................105 Summary .................................................................................................109 Citings .....................................................................................................111 8 How the State of Georgia Implemented a Governance Solution Saving Millions of Dollars Each Year ..................................................113 Background ..............................................................................................116 Executive Sponsorship for a New Governance Model ...............................118 Developing the GETS Outsourced Infrastructure Service Model ..........................................................................................119 GETS Services Platform ......................................................................121 The GETS Governance Model .................................................................122 Executive Governance: Strategic Level .................................................123 Enterprise “G” Governance – Operational Level ..................................123 Workstream ‘g’ Governance .................................................................125 Business/IT Partnership/Collaboration .....................................................126 Strategic Alignment ..................................................................................126 Process Optimization/Collaboration ........................................................129 GETS PMO Organization ..................................................................129 Managing Agency Requirements .........................................................132 Capgemini MSI ..............................................................................132 Capgemini MIS Governance Process ...................................................133 Governance Forums .............................................................................133 Continuous Improvement ...................................................................134