How can you make better IT decisions?

I like to start with… “what problem are we trying to solve?” If we can’t get a clear definition or agree on the problem, it’s going to really hard to come up with a good decision.

Two critical steps to never skip: 1. Make sure you have truly listened to the business, understand the business strategy, and partnered to align on their needs and priorities. IT decisions should always be in support of the company's overall general interest. 2. "Zoom out" -- IT decisions are rarely isolated. There's almost always a knock-on impact that needs to be considered. Take the time to ensure you've assessed all potential impacts, both positive and negative before landing a final decision.

A business-minded CIO told me "Start with the Answer", from a business perspective, and work backward. If the business vision is to grow your market, define in measurable terms what that will look like 10 years, 5 years, and 1 year from now. Where IT is needed to help accomplish this develop IT initiatives that form the building blocks going forward.

IT vision needs to address the following three questions: 1) Are we addressing the core business needs - i.e. the part of your P&L that drives real growth and/or margins? 2) Are we renewing the foundation to enable us for future needs given technology changes and pace of change will always accelerate, in other words are we addressing the debts? 3) Do we have the right skill sets in our team for (1) and (2) above and the DNA addition for future pathways and growth? Interestingly same applies for a corporate vision as well and why not why should IT vision evaluation be any different. IT for IT sake never was and never will be a good idea, shiny objects are often that!! Shiny Objects. Business and IT needs to focus on impact and real value.

This reflects the downstream story and should be standard practice. However as part of evolving business strategy the importance of understanding and incorporating innovative technologies is often a missed competency as part of business strategy. Where technology is a core element of the business, such as mobile telephony, the role of CTO provided this competency.

In addition to defining your IT vision and assessing capabilities, it's vital to prioritize continuous learning and upskilling within your IT team. The technology landscape is fast-evolving, and what worked yesterday might not be the best solution today. Encouraging a culture of ongoing learning will keep your team at the forefront of new technologies, techniques, and trends. This equips them to make informed decisions and propose innovative solutions. Furthermore, don't forget the importance of retrospectives. Post-project reviews to determine what worked well and what could be improved will refine decision-making processes over time, enhancing the quality of IT decisions made in the future.

From my experience, assessing an organization's IT capabilities forms the bedrock of a strategic roadmap. Utilizing frameworks like ITIL, CMMI, and COBIT, coupled with tools like gap analysis and benchmarking, aids in aligning IT services with business needs and improving processes. Adapted to an organization's specifics, these tools shift an IT assessment from a mere audit to a future-facing strategy, highlighting that IT is not just about technology but also about people, processes, and culture. 𝐎𝐧𝐞 𝐜𝐚𝐧𝐧𝐨𝐭 𝐩𝐫𝐨𝐭𝐞𝐜𝐭 𝐰𝐡𝐚𝐭 𝐨𝐧𝐞 𝐜𝐚𝐧𝐧𝐨𝐭 𝐬𝐞𝐞 𝐨𝐫 𝐮𝐧𝐝𝐞𝐫𝐬𝐭𝐚𝐧𝐝!

Making better IT decisions is an ongoing process. It requires a combination of strategic thinking, collaboration, and continuous evaluation. By following these steps and considering the unique needs of your organization, you can enhance your IT decision-making and drive success.

Assessing your IT capabilities is a critical step in making informed IT decisions. This process starts with a thorough evaluation of the current technology infrastructure, including hardware, software, and network systems, to understand their efficiency, scalability, and alignment with business needs. It's important to also assess the skills and expertise of the IT team, identifying gaps in knowledge or resources that could hinder the implementation of new technologies or strategies. Additionally, analyzing the performance of existing IT systems and processes against industry benchmarks or competitors can provide valuable insights into areas needing improvement or investment.

Data is just data. The story that goes with the data is probably more important than the data itself. For example some kpi goes down for two consecutive periods. Is that a problem? Maybe. If it is outside of normal process variability then it likely is. If it is within normal parameters then not likely. Why can be more important than what.

Context behind the data often holds the key to insightful decision-making. Data shouldn't be seen as a standalone entity rather part of a narrative that helps leaders make sense of complex situations. Decisions should not merely rely on the hard numbers but also on the interpretation of these numbers and their relevance to the specific circumstances at hand. This includes understanding the factors that led to the data outcomes, the potential implications of these outcomes, and the actions that need to be taken as a result. This is where tools such as data visualization and storytelling can be invaluable, allowing for more comprehensive and intuitive understanding of data, transforming raw data into actionable insights & nuanced decisions.

Leveraging by data and analytics is essential. By basing decisions on accurate and relevant data insights, you can gain a deeper understanding of trends, performance metrics, and potential risks, leading to more informed and data-driven choices that drive business success.

Utilizing data and analytics is pivotal in enhancing IT decision-making. By systematically collecting and analyzing data from various IT operations and business activities, organizations can gain deep insights into performance trends, user behavior, and potential areas of improvement, allowing for more data-driven, objective decision-making. This approach not only helps in optimizing current IT systems and processes but also aids in predicting future needs and trends, thereby enabling proactive and strategic IT planning.

Involving stakeholders is critical. By actively engaging stakeholders, such as end-users, IT teams, and business leaders, you can gain valuable perspectives, gather diverse input, and ensure that decisions align with the needs and priorities of all relevant parties, ultimately leading to more effective and well-supported IT solutions.

It is key to ensure you are involving the RIGHT stakeholders in the decision making process. Sometimes the step to determine the right stakeholders isn't given sufficient time. This can result in revisiting decisions; which drives delays, increased costs and unhappy customers.

Involving stakeholders is a key element in making effective IT decisions. Engaging with various stakeholders, including management, end-users, and IT staff, ensures that decisions are informed by diverse perspectives and meet the broader needs of the organization. This collaboration can lead to a more holistic understanding of how IT changes will impact different areas of the business, fostering buy-in and smoother implementation. Moreover, regular communication with stakeholders throughout the decision-making process helps in identifying potential challenges early, ensuring that IT initiatives are aligned with the organization's goals and user expectations.

Technology is a means to solve business problems and make organizations more successful, so stakeholder involvement is crucial is the success of business outcomes. Using councils and steering committees to drive better stakeholder involvement has been a successful path forward

Cultivate a culture of learning. Don’t be too enamored with the design that got you where you are. Actively seek to incorporate new learning and methods into your IT decisions. The competition is guaranteed to pass you up if you’re spending your time polishing your trophies.

This is the part that can be the hardest. It is critical that you build a culture that embraces failure. Don't continue down the road simply to avoid admitting defeat. Be willing to accept when things are not going as hoped. Learn from the experience. Then move on. With each iteration, you will be better.

At Amazon we talked a lot about “one-way” and “two-way” doors. If the decision was a two-way door, that is, could you roll back or undo or reverse your decision easily, then we could spend less time on the analysis part. We’d rather spend our time analyzing the one-way doors where we had to be right or had less room for error. Once we passed through the one-way door, it would be really difficult (or expensive) to undo the decision or go back through that door. Thus, we’d spend our energy on the one-way doors.

Consider your core business to determine if outsourcing is more cost efficient and flexible than building an internal team. Keeping abreast of cybersecurity risks and cloud infrastructure technologies (for example) is continually changing and not particularly unique to any single organization. Having a trusted partner reduces risks.

In addition to the "Assess Your IT Capabilities" section, this article would benefit from a section dedicated to assessing the capabilities of the decision-makers themselves. Poor decisions are sometimes made as a result of a poor knowledge foundation within those responsible for making the decisions. With the increasingly rapid evolution of technology innovations, ensuring that those who are assigned with this responsibility are qualified to carry it out is critical. Leaders now need a greater understanding of a technology landscape to better take into account input from specialized tech experts. To remain competitive, organizations need to consider investing in upskilling leadership or new leadership skillsets need to be brought in-house.

Effective IT decision-making extends beyond setting a vision and assessing capabilities; it encompasses thorough financial planning and cost management, rigorous risk management with a focus on security and compliance, and the evaluation of scalability and flexibility in IT solutions. It also involves a critical assessment of vendors and technologies, considering the sustainability and environmental impact of IT choices, and prioritizing training and development for staff and users. Finally, it requires a commitment to ongoing feedback and continuous improvement, ensuring that IT strategies evolve in line with changing business needs and technological advancements.

Use both a top down and a bottoms up approach... if using the approaches appropriately though ought to meet in the middle letting you know you reached the correct decision/s.