By understanding business needs more clearly, organizations can streamline demand on IT resources, freeing up time for value-creating activities. Most IT departments spend the majority of their time on maintenance tasks, such as fixing code and routine system maintenance. This leaves minimal resources for tasks that directly contribute to business growth.
But what if we could flip this ratio? Imagine shifting IT’s focus so that most resources are dedicated to creating value rather than maintaining systems. By approaching IT with an investor mindset—prioritizing results and business outcomes—organizations can make better use of IT assets.
A study from the McKinsey Global Institute, titled "Flip the ratio: Taking IT from bottleneck to battle ready," shows that organizations using this approach can reduce IT labor costs by up to 40% and see payback within 18 to 24 months. This strategic shift also improves time to market, enhances product quality, and allows businesses to quickly assess the potential value of new technologies.
Accelerating business with agile IT
Today, too few IT resources are devoted to activities that differentiate the business. By mapping IT services and products against the complete value chain, companies can better understand which areas to prioritize. Once these demands are clear, agile methods can be implemented. Cross-functional, self-sufficient teams working in rapid iterations can reduce the need for excessive resources. Additionally, providing self-service tools can further reduce strain on IT by empowering users to handle minor issues independently.
Metrics drive success
To flip the IT resource allocation, companies need the right metrics. The most effective metrics are measurable, actionable, and provide daily insights. They allow teams to track progress and make quick adjustments, ensuring that all levels of the organization work toward shared goals that increase business value. Asking strategic questions about the outcomes and results of IT initiatives can help evaluate whether a project enhances overall organizational health.
The importance of 'IT for IT' solutions
IT-for-IT solutions—tools that improve internal IT processes—are essential for boosting productivity. However, many of these solutions go unused or fail to meet expectations. A more successful approach involves allocating resources based on demand within the organization. In this model, any backend IT team member can propose new technologies, which are then reviewed by an oversight team. If the project is approved, a cross-functional enablement team is created to ensure delivery and adoption. Quarterly reviews help determine whether the project should receive additional funding, keeping efforts aligned with business goals.
The role of leadership
Achieving this shift requires strong leadership. While too much control can stifle innovation, a lack of focus often results in teams falling back into old patterns. To prevent this, enablement teams should regularly present their progress to IT leaders, allowing for quick decision-making on budgets, priorities, and problem-solving.
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