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19 Posts authored by: tbmcouncil Employee

“Recognizing TBM leaders at the forefront of institutionalizing TBM as a methodology within their organizations.”

 

To make a deep impact with Technology Business Management, organizations must evangelize from the inside out. The TBM Champion award recognizes TBM leaders, TBM architects and governance professionals who are leading the TBM initiative by institutionalizing its practices as a methodology and functional role within their organizations. The most transformative TBM leaders apply rigor and expertise to the TBM methodology to elevate and ensure its practices across the business and across time.

 

The most successful TBM Champions:

  • Educate IT and business executives about TBM and the importance of its adoption; evangelizes TBM through community engagement, such as through the TBM Council.
  • Make TBM reporting a core component of operational meetings, business reviews, annual strategy and planning and other IT or business meetings.
  • Empower IT leaders to make better, faster decisions.
  • Empower business and finance leaders with transparency into the IT costs and consumption driven by the lines of business.
  • Collaborate with business partners to understand their plans and anticipate demand.

 

The TBM Awards Selection Committee identified the following three finalists because of their impressive display of truly championing TBM methodology over the last year. We are confident this notable trio of nominees are exceedingly deserving of recognition and we’re excited to share why they made the cut as finalists.

 

The Award Finalists

 

Comerica: Comerica is among the 25 largest U.S. banking companies, with roughly 9,000 employees. They began the process of transitioning to a service management organization two years ago, starting in IT, with the goal of providing financial insights into services. However, the group was using Excel spreadsheets, which quickly proved inefficient and unmanageable to meet the company’s transformational plans. Comerica knew they needed to operate differently and chose a TBM approach, despite a lack of support from finance. The plan: provide financial metrics for every service Comerica has defined, evangelize TBM across the company, and build successes so TBM is not only utilized but also institutionalized. The results flew in, as TBM was rapidly deployed with across the organization and early success was presented to the executive team. Comerica developed a TBM roadmap that IT presents on a rolling basis to all possible stakeholders in the organization today, ensuring everyone in the organization understands “what the art of the possible is.”

 

Cox Enterprises: Cox Enterprises, owner of one of the largest cable operators and media groups in the United States, has a diversified business. Currently in the process of becoming a corporate shared services center with five major divisions, it is critical for Cox to understand its costs to serve the enterprise. The company recognized early on that transparency was not the end goal. Rather, it needed to ensure IT spend was in support of business strategies and priorities. Ultimately, TBM for Cox and its divisions became about business and IT alignment and strengthened partnership. TBM was embraced as a new way of thinking about how IT would conduct itself internally. Cox relies on TBM to champion the way IT provides services to its customers, in a common language, while also providing transparency. Today, Cox companies (AutoTrader, Manheim, Cox Communications, Cox Media Group and Cox Enterprises) have become evangelist for TBM both in national and local venues. Professionals within Cox are on the TBM Board as well as principal members who have contributed to the thought leadership of TBM— proving their loyalty to TBM in multiple ways.

 

State of Washington: Each year the State of Washington spends nearly $1 billion on IT staff, infrastructure, applications, maintenance, and operations. Mandated benchmarking reports commissioned by the Legislature shed little insight into IT spend and performance. So, in 2012, the incoming CIO turned to TBM as a way to meet the Legislature’s requests for transparency. The state set out to work closely with legislators to evangelize the need for TBM and establish the TBM Program within Office of the CIO (OCIO) to bring the state’s separate agencies on board, collaboratively and willingly. Today, Washington State has made valiant steps towards infusing TBM practices into daily procedures. A TBM advisory group was formed to create a strategic roadmap with feasible and achievable milestones along the way; a significant portion of the OCIO website is dedicated to explaining the TBM program; and most notably, TBM is essentially now mandated by law for Washington state agencies— talk about a TBM champion!

 

After reading about the above nominees, it should be clear that The Technology Business Management (TBM) Awards are recognizing IT and finance leaders for their ingenuity, creativity, and contribution to Technology Business Management. The TBM Champion Award specifically honors organizations who have proven they are the gold standard for successfully implementing TBM practices and we are very proud of this year’s nominees.

 

If you want to learn more, be sure to check out the TBM Award page here. You can also find us on Twitter at @TBMCouncil and through the #TBMC14 hashtag for all conference updates!

 

Register here for the only conference focused on managing the business of IT! Enjoy inspiring conversations and sessions from a packed agenda, followed by eventful nights in Miami Beach’s famous Fontainebleau Hotel, October 28-30th.

“Recognizing finance leaders who drive an IT financial strategy that matches the new demands of the IT organization.”

 

Modern technology leaders are constantly faced with demands to produce more, faster and cheaper —near impossible expectations without exceptional financial guidance. The most successful IT finance leaders are able to create cost transparency and build a flexible IT cost structure that scales with business demands. The IT Financial Pioneer award recognizes CFOs of IT, VP of IT Finance and/or Technology Controllers who don’t simply account for IT spend, but drive an IT financial strategy and capability that matches the ever-changing demands of the IT organization. They can be championed as chief financial officers of the IT organization.

 

This year’s TBM Conference Selection Committee identified nominees for this award who demonstrated the following characteristics typical of the most successful IT Financial Pioneers:

  • Translating cost data into meaningful perspectives for technology and business decision makers.
  • Informing decision makers of cost, quality, capacity and consumption tradeoffs.
  • Communicating costs to business partners in a way that helps shape business demand.
  • Finding ways to “variablize” IT costs and enabling public and private cloud adoption.
  • Collaborating with corporate financial officers on strategies to fund innovation and growth.

 

To qualify as an IT Financial Pioneer nominee, it is clear from the list above exceptional accomplishments have been made. The nominees for this award — The Clorox Company, CME Group, and Wells Fargo — have proven themselves in a substantial way and we are honored to recognize each of them.

 

The Award Finalists

 

The Clorox Company: As a multinational manufacturer and marketer of consumer and professional products, Clorox embarked on their TVM journey three years ago. They possessed a clear vision: increased financial accountability and improved financial visibility and cost transparency at every level of detail, from infrastructure RUs to application cost by business unit. Prior to TBM, Clorox faced budgeting and transparency issues. To fix the issue, Clorox established a TBM Office (TBMO) with dedicated resources to drive all of its financial packages, including: Budget, forecast, LRP (loan repayment program), variance analysis, projects and SOX compliance. The results were extensive. Clear insight into financials enabled IT to find ~10% percent of cost savings in IT budget, driving that money into innovation. As a follow-up, Clorox requested – and for the first time, received – innovation funds for IT. This money was used to fund innovation in mobile computing for the next generation of workers, and other IT projects.

 

CME Group: CME Group Inc. is one of the world’s largest options and futures exchanges. While they had been utilizing TBM methodologies for the past decade to create cost models, it had been doing so manually. However, when CME hit a period of expansion in the mid-2000s, spreadsheets were no longer effective. Couple that with the 2008 recession and a change was needed. And by 2009 CME began to look ahead, planning for growth. It focused on a set of core initiatives, including the re-implementation of cost modeling – enabled by TBM technology -- with a specific goal: Change customer behavior, which in turn impacts demand. Today, CME Group began utilizing TBM to determine their actions on profitability. The TBM group created a partnership with the business, implemented a message efficiency program that models order to trade ratios, created a consolidated view of product profitability, and more. Thanks to the metrics enabled by TBM, CME Group is now looking to implement a spatial computing language to change the way that complex, real-time, high volume computations are distributed across a global infrastructure.

 

Wells Fargo: Technology at Wells Fargo is increasingly becoming more and more relevant to how the company differentiates itself from its competitors. Following the recession, Wells Fargo set out to determine how it could more effectively manage and operationalize its business, including back office functions and they began by utilizing TBM to enable true costing and transparency to alleviate trust issues. Wells Fargo’s approach was layered. They developed an internal system that allowed the IT division to create and manage IT services, created a transparent IT Bill to the respective businesses that consume IT services, led extensive trainings to demonstrate capabilities, and more. Today, Wells Fargo’s data is cleaned up, costs are aligned and services identified; the IT division is able to identify the true driver of cost, resulting in business decisions around consumption and demand; business leaders can now influence IT costs and they are, in turn, better demand managers; and trusted IT cost trending analytics and IT benchmarking were provided to the C-Suite.

 

The TBM Awards were created to recognize IT and finance leaders for their forward thinking, creativity, and overall dedication to advancing TBM practices, we’re pleased to recognize the above group for doing just that.

 

The nominees selected for the IT Financial Pioneer Award are exceptional in unique and notable ways. All of the IT leaders showcased have had a remarkable impact on their organization and are well deserving of a TBM Award nomination.

 

Want to learn more? Check out the TBM Awards page here! Be sure to follow @TBMCouncil on Twitter and #TBMC14 to stay update on all conference announcements!

 

Access the TBM Conference registration page here and prepare to share best practices and TBM stories with IT leaders- Miami Beach doesn't know what it has coming in October!

“Recognizing leaders who have transformed IT from a technology focused organization into a strategic business partner.”

 

Transitioning from a cost center to a services-based organization is a journey. It requires relationship building skills that facilitate a cultural shift throughout an organization and, at the same time, uses TBM as a common language that allows IT, finance and business leaders to understand technology investments, usage and outcomes. This award recognizes CIOs, Business Relationship Management, Governance, Service and/or Account Management leaders who have implemented effective business relationship methodologies, and a TBM-based language that communicates the value and metrics of TBM, and improves the capabilities, productivity and credibility of the IT organization. These leaders have transformed IT from a technology focused, order taking organization with little credibility with the business, into a highly regarded and strategic business partner that consistently brings the value of IT to the business as a whole.

 

Successful IT Transformers focus on:

  • TBM informs key decisions within IT and in business, including sourcing, investment levels in services and portfolios, and IT funding, M&A and partnering.
  • IT services portfolio is aligned with the needs of the business.
  • A consultative, client centered approach.
  • Communications excellence and change management excellence.
  • Effective governance structures.

 

It is clear that nominees for the IT Services Transformation Award are up against a big challenge, and have proven themselves in a significant way. We believe the following three finalists are well deserving of recognition and we are excited to acknowledge each of their contributions to advancing the TBM practice.

 

The Award Finalists

 

AXA Investment Managers: The AXA Group, a top ten global asset manager, is a conglomerate of independently run businesses, operated according to the laws and regulations of many different countries. Within AXA Investment Managers, the Technology department is the largest from a total cost perspective. Prior to 2013, technology was viewed as an expensive overheard due to intangible expenses. With a change of CIO last year, the technology group started down the TBM road, and in the process implemented a governance structure that changed the culture of the IT organization, all cemented in TBM methodology. To do this, AXA built a Service Catalogue clients were already familiar with– the first step in transforming to TBM for the group—and implemented a TBM governance model that rooted TBM throughout the organization. This initiated a cultural shift within the organization’s Technology group. After educating the staff, AXA was able to focus on the transformation of its cost base into services. Today, the technology department is being transformed, all with the helping hand of a modern CIO and TBM implementation.

 

Fannie Mae: After The Federal National Mortgage Association, better known as Fannie Mae, was rocked by the 2008 financial crisis, it was clear a change needed to be made. In the quest to respond to the transformation underway in its market, Fannie Mae IT began taking measures to be more efficient and responsive, and ultimately manage IT like a business. However, in attempting to respond to the business’ request for more efficiency, Fannie’s IT organization realized it had no real insights into its technology portfolio, IT costs or performance and thus could not make the strategic decisions. A transformation was in order and the process of understanding costs – the “why” of IT – through a transformation to a services based organization, facilitated by the implementation of TBM began. Today, IT acts as the TBM Center of Excellence. Fannie Mae implemented a business show back report to enable businesses to gain transparency into IT costs, created clear show back messaging that IT provides transparency to enable collaborative decision-making, utilized complexity measures to drive dollars— all driving towards better decision making and a transformational IT service structure.

 

Nationwide Building Society: Nationwide Building Society is a British mutual financial institution and the largest building society, or retail bank, in the world. Nationwide is a complicated organization with a complex set of applications, systems, and IT— which makes sense their biggest issue was a lack of transparency: of the cost of IT; of the unit cost of delivery of IT; and the actual run cost of IT. In short, the TBM methodology helped transform the way Nationwide communicates. Once they addresses the problem, actions were put in place to work towards a solution. The approach: implement strategic cost management, financial controls and demand management. These changes created a cultural change in the Services Group, where “there is a different way of doing things” is embraced. A TBM governance group was born to provide an approval and escalation path for cost allocation decisions, priority and forward planning of development of the solution and other areas with traditionally contending views. Today, TBM helps determine how to deliver the right capacity to the business at the right time and was a key player in Nationwide’s successful IT transformation.

 

As it is likely evident from the above look into these three finalists, the Technology Business Management Awards are honoring IT and finance leaders for their ingenuity, creativity and contribution to advancing the practice of TBM.

 

These IT leaders are having a significant impact on their companies due to their keen focus on empowering operational excellence, business innovation, and business transformation.

 

Interested in more? Find out more on the TBM Award page here. Don’t forget to follow @TBMCouncil on Twitter and use the #TBMC14 for all conference updates!

Register here for the TBM Conference to share best practices and TBM stories with IT leaders, all set to a beautiful backdrop of Miami Beach!

“Recognizing technology leaders who have leveraged infrastructure engineering for a new level of business results.”

 

Technology is changing the world as we know it and the challenge now is to not only keep up, but to get ahead. The infrastructure of yesterday is all but extinct today but a select few IT leaders have managed to not only get ahead of this dilemma, but blaze the trail while doing so. This award recognizes CTOs and/or SVPs of Infrastructure who have leveraged infrastructure engineering for a new level of business result, gracefully navigating this new age of technology as data analytics, cloud services and advancements in networking operations transform.

 

Elements that define successful Infrastructure Trailblazers include:

  • Migrated their business to cloud-based technologies in a meaningful way and/or successfully addressed the need to support mobility through changes to backend operations and architecture.
  • Successful, technical applications of virtualized desktops and other tools that change the entire user experience.
  • Made highly technical changes in their company’s IT architecture, resulting in major improvements in performance and profitability.
  • Developed an internal IT architecture practice to reduce complexity, eliminate redundancies, and end non-compliant IT spend – all in a measurable fashion.
  • Leveraged big data by addressing the complex problems of integrated data across multiple, disparate sources and platforms.

 

With a list of accolades as impressive as this, it should be clear that the organizations nominated for the Infrastructure Trailblazer Award are in a category all on their own. These three nominees are the shining example of how to distinguish imitator from innovator. Read on to find out why:

 

The Award Finalists

 

Mylan: As the second largest generic and specialty pharmaceuticals company in the world, Mylan undertook a global corporate restructuring effort over the last two years that moved the company from a regional management style to a centralized approach. The goal: double its $8 billion in revenues in the next five years; and triple it in the next ten. As part of the transformation, new leadership was brought on board, including a Global CIO, Michael Smith, who brought a different—trailblazing— mindset to what IT is all about, and he did it with TBM. Utilizing TBM, IT is providing cost transparency on all cloud-based systems for Mylan, ultimating resulting in transformative results. As the transition to the cloud continues, with TBM as the driver, Mylan is a leading infrastructure trailblazer due to its notable transparency and visibility initiatives.

 

AOL: Two years into a five-year transformation, AOL is currently changing their data center strategy in a massive way in parallel to implementing the TBM model. The goal: reduce technical debt, streamline operational costs and migrate out of legacy data centers. As part of this transformation effort, Technology Operations determined that it wanted to change the way that it interacts with the business by changing the discussion from a defensive standpoint – defending the ever-increasing costs of IT – to one that sheds light on business decisions that impact IT spend. When the company as a whole mandated a move to segment level reporting, IT Operations took its cue and began implementing TBM. Due to its already undeniable success, the TBM model is actively being considered for used for sales and other areas outside of the technical space.

 

Microsoft: The Cloud Infrastructure group at Microsoft embarked on its TBM journey nearly five years ago with a charter to manage cloud infrastructure costs – a mandate that could not be achieved without continual downward pressure on capital and operating expenses. The driver: create incentives for both the operators as well as the service teams to employ utilization and availability. Microsoft’s approach was to develop a system called the Business Management System (BMS) that allows the Cloud Infrastructure team to plan, design, implement, and operate cloud infrastructure cost management methodologies and processes using TBM methodologies. The results rolled in. They reduced 56 core systems to just a handful, removed redundancies between processes and tools, standardized hardware, created a convergence with software and more. All this momentum has produced strong feedback from stakeholders that the TBM approach has improved the planning, operational management and financial management disciplines.

 

The TBM Awards focus on organizations and leaders who have a keen focus on the TBM vision and best practices. Designed to highlight IT and finance leaders, this year’s nominees inspired the selection committee with their creativity, ingenuity, and overall contribution to TBM.

 

Find out more at the TBM Award page here! For our social media lovers, be sure to follow @TBMCouncil on Twitter and use the #TBMC14 and #Going2Miami hashtags for all conference updates!

 

Register now for the only conference focused on managing the business of IT, with the flavor of the one and only Miami Beach added in for fun!

“Recognizing CXOs that think differently about their business - through a digital innovation lens.”

 

Technology leaders must be at the cutting edge of the digital transformation. With CEOs turning toward marketing and sales leaders and Chief Digital Officers to steer the digital charge, CIOs must step in and bring their considerable knowledge of digital technologies and strategies to bear on the future of their companies.

 

The Digital Innovator award category was created to recognize CIOs who are leading their organizations to “think differently” about their business. The nominees the TBM Conference Selection Committee identified for the Digital Innovator award stood out among the rest as forward-thinkers and true pioneers in the digital age.

 

Digital innovation can range from customer engagement to new sales channels to digitally enhanced business processes to deriving new business value from big data. Successful Digital innovators focus on:

  • Connecting digitally with customers while effectively partnering with the marketing organization.
  • Building successful partnerships with a new array of technology providers.
  • Shifting the majority of the IT budget from maintenance costs to high-value investments.
  • Leveraging technology for new markets, new sales channels and new sources of revenue.
  • Providing digital technology leadership to business executives.

 

We chose the below three finalists because they exhibited the characteristics of a digital innovator listed above, and more. This impressive trio of finalists truly live at the forefront of the digital transformation and are deeply deserving of recognition.

 

The Award Finalists

 

DIRECTV: DIRECTV has been an early adopter of TBM and its CIO, Mike Benson, has been a proponent of TBM from the very beginning of the TBM Council. Most recently, Mike has been relentlessly focused on improving the ability to innovate. The approach? DIRECTV is managing its run-the-business spend as a portfolio. They are utilizing TBM to help organize and present data to help show internal and external partners their service costs and align better on decision making, and finding great success. DIRECTV is paving its own path, partnering with the business units to provide them with an architecture in which IT strives to fail quickly and improve so that it can get ideas into the market rapidly, safely and with low total cost — truly innovating the way digital is done today.

 

HBO Latin America: As the media industry continues to evolve at a rapid pace, HBO Latin America’s ability to support multiple digital platforms, and generate revenue on each, has been an evolution – one that has forced the company to transform to be able to keep up, and move forward. To keep up, they have created a TBM- infused approach to transform the IT organization to a services-based organization and free up capital for digital innovation. The result? HBO Latin America was able to build a digital roadmap that was never possible at the outset of the IT organization transformation, adding revenue generating digital services all thanks to their forward-thinking, innovative approach.

 

NutriSavings: NutriSavings was nominated for its innovative approach to bridging a gap in healthcare, using digital technologies. In April, 2013, Boston-based NutriSavings was spun-off from its parent company Edenred Group, a French developer of prepaid corporate services. NutriSavings focus: Build a digital eco-system that connects supermarket, food manufactures and growers with consumers through their health plans. Its mission: to improve America’s healthcare system through an innovative corporate wellness program. NutriSavings utilizes TBM methodologies to gain insight into relevant, timely and actionable guidance for its IT leaders. The company's TBM journey started with evaluation of a cloud based business continuity opportunity.

 

It should be evident by the incredible list of nominees that Technology Business Management Awards are honoring IT and finance leaders for their ingenuity, creativity and contribution to Technology Business Management.

 

The awards recognize the profound impact that these professionals have on their organizations by empowering operational excellence, business innovation, business transformation, TBM vision and best practices.

 

Interested in learning more? Check out the TBM Award page here. Be sure to follow @TBMCouncil on Twitter and use the #TBMC14 for all conference updates!

 

Register now to network with innovative technology and business leaders in the warm sunshine of Miami Beach!

Modern IT leaders are reinventing themselves with a new set of skills to drive technology innovation. These leaders are focused on delivering better value for their spend, while offering the right services, at the right quality, and the right price. They are driving a dialogue about cost, quality, consumption, and value between the IT department, the finance department, and the business units using language that everyone understands.

 

Many of you already know this, because you are one of these modern IT leaders and that’s why you’ve joined the TBM Council. It’s also this type of special leader that the TBM Awards were designed to recognize.

 

After an extensive nomination process, we’re proud to reveal the finalists who are in the running to win a TBM Award today.

 

These awards recognize the profound impact IT professionals have on their organizations by driving operational excellence, business innovation, business transformation, and the overall TBM vision. These leaders are the best-in-class are we’re thrilled to be honoring them for their contribution to the industry!

 

And now the drumroll…the 2014 TBM Award Finalists are:

 

 

Digital Innovator: Recognizes CIOs who are leading their organizations to “think differently” about their business— through a digital innovation lens and TBM practices. Digital innovators leverage technology for new markets, new sales channels, and new sources of revenue and provide digital technology leadership to business executives.

  • DIRECTV
  • NutriSavings
  • HBO Latin America

 

Infrastructure Trailblazer: Acknowledging technology leaders who have leveraged infrastructure engineering for a new level of business result with technology business. These companies have likely migrated their business to cloud-based technologies, re-modeled their network architecture to flatten the topology, or developed an internal IT architecture practice to reduce complexity all in a successful way.

  • Mylan
  • AOL
  • Microsoft

 

IT Services Transformation: Recognizing leaders who have implemented effective TBM-based lingua franca that communicates the value and metrics of TBM, and improves the capabilities, productivity and credibility of the IT organization. These leaders have transformed IT from a technology focused, order taking organization with little credibility with the business, into a highly regarded and strategic business partner that consistently brings the value of IT to the business as a whole.

  • AXA Investment Managers
  • Campbell Soup Company
  • Fannie Mae
  • Hillshire Brands Company
  • Nationwide Building Society

 

IT Financial Pioneer: Championing leaders who no longer merely account for IT spend, they drive an IT financial strategy and capability that matches the new demands of the IT organization. This group of innovators have become chief financial officers of the IT organization by translating cost data into meaningful perspectives for technology and business decision makers with the help of TBM.

  • CME Group
  • The Clorox Company
  • Wells Fargo

 

TBM Champion: Honoring teams or team members who are at the forefront of the TBM initiative, institutionalizing TBM as a methodology and functional role within their organizations. TBM leaders apply rigor and expertise to the TBM methodology to elevate and ensure its practices across the business, evangelizing through community engagement, such as through the TBM Council.

  • State of Washington
  • Comerica
  • Cox Enterprises and Cox Automotive Group

 

In today’s rapidly changing IT landscape, there are certain players who stand out among the rest as visionaries. While we wish we could recognize all the amazing work going towards advancing the practice of TBM, this group who stands out above the rest.

 

Over the next week, you will see a series of blogs describing why we think these companies are worthy of a TBM Award crown. We are so excited to honor this impressive list of finalists and announce the winners at October’s TBM Conference in Miami on Oct. 28.

 

To receive all TBM Conference updates, be sure to follow the TBM Conference Twitter handle here and search for the hashtag #TBC14 and #Going2Miami.

 

Congratulations to all our finalists, you really blew us away with your commitment to advancing the practice of TBM and displaying real innovation within your organizations!

There is no industry group on the planet better positioned to understand intimately those qualities that make an exemplary IT or finance leader – one that has put forth specific initiatives and efforts to transform their organizations -- than those of you who are members of the TBM Council.

 

As Technology Business Management practitioners, you understand what it takes to move the needle in your IT organization, your finance organization, or your organization as a whole. You’ve put your considerable efforts behind TBM initiatives – it’s been a journey, of course – and there may still more of the path to travel. But you’ve had successes (some big huge successes). Or you’ve learned best practices from colleagues and you’re putting them to the test.

 

As a TBM Council member, now is your chance to recognize those efforts – either your colleagues or your own – through the TBM Award nominations. Winners will be announced at a gorgeous conference venue in Miami, with nearly one thousand of your peers in attendance.

 

On that note, the TBM Council Board Members and I are delighted to announce the official opening of the 2nd annual TBM Awards nominations. Click here to read about this year’s categories and submit your nomination.

 

We’ve created five awards to honor IT and finance leaders for their ingenuity, creativity and contribution to the emerging field of Technology Business Management. The awards recognize the profound impact that these professionals have on their organizations by empowering digital, infrastructure and IT transformation, organizational innovation and TBM vision and establishment.

 

Last year’s TBM Awards winners included leaders from eBay, Goldman Sachs and Amerisource Bergen, First American and Bill and Melinda Gates Foundation

 

The 2014 TBM Award categories recognize, in other words, those on the bleeding edge of today’s rapidly changing business environment, regardless of industry sector. They include:

  • Digital Innovator Award: Recognizing CXOs that think differently about their business - through a digital innovation lens.
  • Infrastructure Trailblazer Award: Recognizing technology leaders who have leveraged infrastructure engineering for a new level of business results.
  • IT Transformation Award: Recognizing leaders who have transformed IT from a technology focused organization into a strategic business partner.
  • IT Financial Pioneer Award: Recognizing finance leaders who drive an IT financial strategy that matches the new demands of the IT organization.
  • TBM Champion Award: Recognizing TBM leaders at the forefront of institutionalizing TBM as a methodology within their organizations.

 

Launched at the 2013 inaugural TBM Conference, our prestigious winners included individuals and teams that accomplished great things through the implementation of TBM methodologies: eBay won the Operational Excellence Award; Goldman Sachs won the Business Innovation award; First American won the Business Transformation Award; The Gates Foundation and Amerisource Bergen won the Director’s Award (two separate awards were given). Click here to read more about their achievements.

 

This year, the TBM Council has appointed industry recognized technology executives and thought leaders to serve on the TBM Awards selection committee, including:

  • Richard Gilbert | Former CTO / SVP Technology Services, SunTrust Bank
  • Julie Flaschenriem | Former CIO, Park Nicollet Health Services
  • Dean Nelson | Vice President, Global Foundation Services, EBAY
  • Larry Godec | CIO, First American
  • Martha Heller | President, Heller Search Associates
  • George Westerman | Research Scientist, MIT Sloan
  • Brian Watson | IT Leadership Author, Editor & Analyst
  • Romi Mahajan | President KKM Group, Investor, Author, IT Strategist
  • Nigel Hughes | Partner, Information Services Group
  • Steve Bates | Principal, Advisory KPMG

 

Please join us in recognizing your peers for their remarkable efforts. Nominations will be accepted through Sunday, August 17, 2014. Click here to visit the TBM Awards website and submit your nomination.

 

Finalists will be announced on Wednesday, September 17, 2014.

 

Winners will be revealed at the TBM Awards Ceremony on October 28, during the 2014 TBM Conference in Miami.

A big congratulations to the five winners of last night’s inaugural TBM Awards during the TBM Conference! Here’s a quick roundup of the winners:

 

eBay won the Operational Excellence award. The Operational Excellence award recognizes an organization that employs internal and external IT transparency to improve the cost-effectiveness of the services IT delivers to the wider organization. For eBay, the win came from finding a way to understand how many kilowatt hours are consumed…per each of their 4.3 trillion URL requests! Talk about aligning IT with the business! Check out this link to see eBay’s TBM initiative in action. It helps people make decisions with metrics that measure business value, an organizational structure that drives people toward the same goal and visibility of unit cost performance at a granular level. eBay is a phenomenal case study of TBM in action.

 

 

Goldman Sachs took home the Business Innovation award. Goldman aligns IT with business at a stunning scale. Running over 26,000 products day-to-day, Goldman’s shared services group is transforming the way the business works. The company has taken the concepts of business innovation and strategic direction to work into a transformed IT organization focused on cost performance and value delivery. Goldman Sachs was able to translate its Midas touch to TBM and IT value delivery. The return on equity performance monitoring requires IT cost visibility that informs pricing decisions and profitability analysis of products across the enterprise. This allows decision-makers to accurately price IT services and see benchmark comparison near real-time.

 

 

First American bagged the award for Business Transformation. The company’s TBM journey started during the economic downturn as a quest for IT cost transparency. First American’s TBM story is about the path toward a mature IT strategy focused on investment in IT to execute a transition from cost containment to customer focus for profitable market share growth. First American embraced TBM as a way to mature their IT strategies and further invest in IT while shifting focus from cost containment to customers and market growth. They were able to consolidate over 30 data centers across the country and remove more than 200 applications.

 

 

The Gates Foundation is building solutions to address some of the biggest problems in the world. The Foundation took home the Directors Award for adopting TBM as a core principal and creating a culture around TBM that helps The Foundation run IT like a business of its own. TBM allows The Foundation to increase capacity across core IT disciplines to serve the needs of the wider organization, resulted in improved policies, processes, systems and measurement practices. As a nonprofit, this concept brings together the components needed to help ensure every dollar invested in IT advances the Foundation’s mission.

 

 

AmerisourceBergen won the second Directors Award. AmerisourceBergen dedicated its large-company resources to move with small-company agility through a TBM program focused on innovative technology services. Over the past several years, the firm has transitioned from 100 percent corporate allocations, to 85 percent direct costing. And IT didn’t just use TBM to serve internal employees better. Responding to business unit market pressures, IT created a standalone organization focused on boosting revenue and profits through services designed to reduce customer switching costs. The TBM Council was impressed by AmerisourceBergen use of TBM for innovation, internal service improvement and customer cost savings.

 

 

Congratulations again to all of those nominated for exemplifying the best practices in TBM! We’re looking forward to sharing more TBM innovation stories. Stay tuned!

Have you registered for the TBM Conference yet? If not, here is another reason: join us as we announce the 2013 TBM Awards on Tuesday, November 5, at the Museum of Flight in Seattle.

 

After nearly six years of hosting CIO summits, we've heard from CIOs and CTOs at companies like Cisco, The Coca-Cola Company, First American, Disney, Park Nicollet Health Services and many others who have made powerful shifts in the way they deliver business value. We have learned from these innovative IT leaders, so now it’s time to recognize them.

 

A few weeks ago, we began the nomination process for our first TBM Council Awards. These awards will recognize executives for using TBM to improve value, transform their organizations and drive business innovation. At the November conference, the Council will recognize business technology leaders with three distinct awards, each based on the nature of business impact best demonstrated by their approach:

  • "Operational Excellence" – improving the cost-effectiveness of service delivery as evidenced by reduced unit costs, renegotiations of service levels and quality, the rationalization of applications or similar measurable improvements;
  • "Business Innovation" – funding greater innovation and improving upon the realization of benefits (e.g., new revenue sources, improved business productivity, etc.) from new investments;
  • "Business Transformation" – transforming the organization to become a services-oriented value partner.

 

We selected approximately 85 nominees from two pools of candidates: qualified participants of the TBM Index, in which more than 160 enterprise IT organizations have benchmarked their TBM practices; and past TBM Summit presenters, where CIOs and other leaders delivered case studies in Technology Business Management. We are currently in the process of interviewing the 19 candidates that chose to participate in the selection process.

 

Our selection team includes experienced leaders in both business and academia:

  • Mark Martinet, former CIO of Level 3 Communications (selection committee chairman)
  • Phuong Tram, CIO of DuPont and TBM Council Board Member
  • Rob Webb, former CIO of Hilton Worldwide and CEO of the TBM Council
  • M. Eric Johnson, Dean, Vanderbilt Owen Graduate School of Management
  • Art Langer, Director of the Executive MS in Technology Management, Columbia University
  • Chris Levitt, TBM Council CFO Research Director

 

Hosted by Boeing CIO Kim Hammonds, the awards dinner follows our first full day at the TBM Conference. Join us to see who wins and to learn from dozens of other Technology Business Management leaders important lessons for improving and demonstrating business value.

 

We look forward to seeing you there!

How can IT leaders measure, manage and communicate business value? In my experience, this is perhaps the biggest challenge that CIOs face today. TBM provides a useful framework and best practices, so it makes sense that the TBM Council would take a leadership role in developing a standard for the profession. I’m pleased to share the results of that effort, which represent a significant step forward for CIOs looking to bridge the language gap with their business-side stakeholders.

 

This summer we engaged Forrester Research to help define the gap and develop a framework for filling it with meaningful business metrics. The result of the research is a balanced set of key performance indicators (KPIs) that, as part of a business value scorecard, are designed to directly address this challenge.

 

Forrester developed a hypothesis and proposed a four-domain BT value scorecard based on its research in the area of CIO dashboards.  Forrester then conducted in-depth interviews with 19 C-level business and IT executives to test this hypothesis and to gather opinions on proposed metrics.  Technology leaders were asked to identify KPIs they currently use and how they would change them, while business leaders were asked to identify KPIs that would most benefit them in making business decisions and understanding technology contributions to business outcomes.

 

Forrester found that most CIOs are still measuring things that are IT-centric, while CFOs and CMOs are looking for metrics that better communicate IT’s contribution to business outcomes. This divide is illustrated by the Forrester chart at the right. To measure business value, many CIOs will fneed to adopt a different set of KPIs.

 

To create and use a scorecard effectively, there are three things CIOs must get right:

  • First, CIOs must measure and report the right things. Forrester found that an optimal BT value scorecard would span four areas: health, delivery, outcome, and agility. These domains convey the best blend of information to help business leaders truly understand the role and contribution IT makes to business outcomes.
  • Second, CIOs and their senior leaders must communicate in business terms. Many of the business-centric metrics recommended by Forrester are financial in nature. Money helps everyone make smarter tradeoffs, such as how much extra capacity is right for the business or what level of service makes sense. IT leaders who understand and communicate financial impact will be able to facilitate more collaborative discussions, securing a more strategic role for technology in business decision-making.
  • Third, CIOs should partner with their CFOs, CMOs and other business partners to drive a regular governance process based, in part, on the scorecard. These vary from business to business, but often take the form of quarterly business reviews and annual strategy meetings. These give stakeholders a chance to review the KPIs, assess performance and collaborate on decisions to improve value.

 

All three of these elements depend on choosing an effective portfolio of KPIs. Forrester recommends choosing 8-12 KPIs, with a focus on quality, not quantity. They’ve define four categories of metrics, two of which are more IT centric (health, delivery) and two of which are more business-centric (agility, outcome). Altogether, the research report proposes 36 different possible KPIs, which provide a running start for any IT leader in any industry.

 

You can download the research findings and recommendations and learn more by attending the TBM Council’s webinar on October 15, where you’ll have a chance to ask Forrester VP Khalid Kark questions about how these KPIs can be applied to different situations. And don’t forget to register for the TBM Conference in Seattle in November, where you’ll hear from an amazing lineup of speakers who have successfully transformed their IT organizations with TBM.

 

For updates on the TBM Council, be sure to join our LinkedIn Community and follow us on Twitter @TBMCouncil.

It has been about a month since the TBM Council announced my appointment as CEO, and I am very excited to lead the Council as we move into our next phase of growth. I have been with the TBM Council since its early days, when I was one of a handful of CIOs sitting around a boardroom table sharing war stories and best practices in our IT work (see top left of this infographic).

 

As each of our IT departments grew in size and complexity, we realized every IT department, across every industry, needed to find a common language with our partners on the business side, a way to talk about the value of IT’s contribution to the enterprise. Providing a framework and best practices for making that sea change has helped TBM grow from a spirited conversation to an emerging category in the IT industry. This November we will hold our first TBM Conference in Seattle, with an amazing lineup of speakers who have successfully transformed their IT organizations with TBM.

 

I knew from the start our group had the potential to change the way IT departments were run. Now with more than 800 members, we have an even more ambitious charter—to lead our profession toward a standard set of metrics that communicate the business value of IT.

 

This year we will focus our efforts on three strategic initiatives:

  1. Develop a self-sustaining business model. The Council has accelerated its recruitment of new partners to underwrite its programs, and will announce the first in a series of new partners later this year. Apptio will continue its support in the role of technical advisor.
  2. Launch industry-specific workgroups. In a few weeks we’ll roll out the structure of vertical industry workgroups, which will provide more focused guidance and benchmarking indices for IT leaders in sectors including financial services, healthcare and energy.
  3. Create a new research committee. The Council is currently undertaking research initiatives with Dartmouth University and Forrester Research. The findings of these studies will form the basis of a thought-leadership platform for the Council, helping us become the authoritative voice on the alignment of IT performance with business objectives and macroeconomic trends. Formalizing a committee to guide future research will ensure that we stay ahead of the trends.

 

I look very forward to working closely with our Council members as we grow into an independent entity and pursue the highest ambitions of our profession. The TBM Conference will be a seminal moment for us, so if you haven’t registered already, please do.

 

For updates on the TBM Council, be sure to join our LinkedIn Community and follow us on Twitter @TBMCouncil.

One of the most common questions we hear is “How do you make TBM work in the real world?” While there are many ways to answer this question, we usually find ourselves discussing the core Technology Business Management (TBM) program office, roles, skillsets, and so on.

 

These elements were discussed in chapter three of the TBM eBook and are the focus of the next installment in our series of management summaries. In particular, this summary discusses how to:

  • Deliver the necessary fundamental reports. Technology service owners, resource owners, project owners, and others are responsible for different layers in the technology value chain. To meet the decision-making needs of these managers, six key types of reports are necessary: service reports, resource reports, project reports, cost recovery reports, general ledger, and executive dashboards.
  • Staff the right skillsets and experience. Service owners, business relationship managers, and other TBM roles are the consumers of transparency—responsible for making decisions. But what about the roles that we need to create and sustain that transparency? To achieve this, additional roles such as TBM analyst, TBM program director, and executive sponsor are also required.
  • Define the essential elements of a transparency system. Many different tools can be used to build a transparency system. Regardless of which tools are used, essential requirements should include scalability, flexibility, automation and error handling, delivery of the right information (e.g., both prepackaged reports and the ability for users to create their own), and security.

 

If you want to learn more about how to make TBM sustainable, there are a number of useful resources. For those wanting to explore the topic in some depth, we recommend reading the TBM eBook. We also hosted a TBM Council teleconference on the topic; the summary, transcript, and recording for the teleconference can be found here. Finally, we hosted an Apptio webinar on the topic, featuring Chuck Niethold from First American (available here to registered users).

 

Of course, we also encourage you to stay tuned for additional management summaries, which Apptio will continue to create as new TBM eBook chapters are published. The chapters will cover topics such as creating a bill of IT, performing demand-based planning, building on the decision-making capabilities of the TBM Framework, and so on. You can find all of the management summaries in the series here as they are published.

In chapter three of the Technology Business Management (TBM) eBook, the TBM Council discusses how to use models to create proper transparency for decision making. Data models—as applied using a technology like Apptio’s—transform existing information into meaningful perspectives so that the right people can make the right decisions. (See my previous blog post for more on “meaningful perspectives.”)

 

Apptio and TBM are not the first to leverage such models, nor to recognize the need to transform cost data in order to more effectively manage the business of IT. Corporate general ledgers, which capture and report cost information to support financial reporting, simply aren’t up to the task—nor are they meant to be. Instead, they sacrifice rich analysis for comparability with other businesses and for comparisons between reporting periods. After all, manufacturing companies, patient care providers, home loan providers, and many other types of businesses all use analytics to transform general ledger data into meaningful cost perspectives. Why should IT, which is just as complex, be any different?

 

The next installment in our series of management summaries for the TBM eBook focuses on how to use data models for TBM. Again, while we recommend that TBM practitioners read the entire eBook chapter, these management summaries can be used to help your corporate finance partners understand the approach you’re taking to cost modeling, beginning with why it’s needed. Topics covered in this latest management summary include guidance on how to:

  • Find the various types of data that are needed
  • Build a layered cost model
  • Choose the right allocation methods
  • Handle cost elements that warrant special attention
  • Incorporate service performance into the model
  • Use a core cost model as a template for other useful models
  • Overcome data quality issues
  • Benchmark cost and performance
  • Create trust in our models

 

Chapter three also explores how to make the transparency enabled by your model sustainable and scalable. We will cover this in our next management summary, which is coming soon. You can find all of the management summaries here as they are published.

If you’re already on the Technology Business Management (TBM) journey, you’ve almost certainly had to decide on the reports, dashboards, and analyses that your people need to make better decisions. Indeed, the ability to make faster, fact-based decisions about how to optimize run-the-business spending and get more out your innovation dollars is largely what TBM is all about. But what decisions do you need to support? Who makes those decisions? And what information do they need?

 

The TBM Council discusses these very questions in chapter three of the TBM eBook (Technology Business Management: How Innovative Technology Leaders Apply Business Acumen to Drive Value). While we recommend that TBM leaders read the eBook, we’re also delivering condensed “management summaries” for you to share with your colleagues and business partners. The next installment in this series of management summaries, which is now available, focuses on these important questions in relation to the four types of decision-making capabilities defined by the TBM Framework.

 

For example, the “optimize cost-for-performance” decision-making capability depends on making informed tradeoffs between cost, performance, capacity, and more. To make these tradeoffs, our decision makers need a supply-side view of their services, projects, and technologies. However, they also need to understand demand and utilization. The remaining three decision-making capabilities defined by the TBM Framework depend on other, different perspectives. In chapter three of the eBook, and in the first of the three management summaries, we discuss the supply- and demand-side views that are needed for all four types of decisions.

 

Figure 1: Service owners need views to help them optimize cost-for-performance of their services.

 

Use the management summary to share these lessons with others in your organization. We especially recommend it for your corporate finance partners, who can use it to understand why you are transforming their corporate financial data into different views. You may also want to share it with your service owners, application owners, portfolio managers, operations analysts, and other stakeholders, who may need a unique perspective of cost, performance, demand, and utilization.

 

Keep an eye out for our next management summary, covering the second part of chapter three, which explores how to use models to transform your data. You can find all of the management summaries here as they are published.

The Technology Business Management (TBM) Conference is THE ONLY conference that brings together Fortune 1000 IT Executives to learn from peers who have successfully transformed their IT organizations with TBM.

 

Industry leading companies including Boeing, Facebook, Coca-Cola, Safeway, Target, and Xerox have embraced TBM. Come meet them and find out why and how at the conference. Here are the Top 10 reasons to attend the TBM Conference:

  1. Meet thought-leading CIOs, CTOs and CFOs and learn how they demystify value.
  2. Insightful presentations from industry leaders including Rebecca Jacoby of Cisco, Mike Benson of DIRECTV and Larry Godec of First American.
  3. Transformative lessons such as ‘How to use TBM to Accelerate Change’ presented by Joe Rafter at PG&E.
  4. 22 case studies featuring Fortune 500 best practices, end- user challenges, experiences, and successes with TBM.
  5. A flexible conference schedule that’s based on your role. Attend the first day only if you’re a CIO, attend additional days to learn about how the magic happens.
  6. The first ever TBM Council Awards – MC’d by the CIO of Boeing, Kim Hammonds. The Awards will recognize industry thought leaders and innovators.
  7. Exciting Ancillary events – Chihuly Glass & Garden with Space Needle Tour, Museum of Flight Banquet, and a Rock N Roll event at the Experience Music Project.
  8. Learn how Goldman Sachs, First American and DuPont IT organizations are becoming better service brokers.
  9. Discover innovative approaches to application and project portfolio management – rationalization, risk management, innovation programs.
  10. Because haven't you always wanted to come experience true Seattle weather and enjoy a hot cup of Java in the coffee capital of the world?

 

Register today! I look forward to seeing you at the conference!