Building the Framework for IT Decision Making
By Dr. Catherine Aczel Boivie
Previous issues of Vantage Point highlighted how not-for-profit organizations could act more “business-like” when performing certain functions… does the same hold true when it comes to investing in information technology (IT)?
Although it can be said that the strategic goals for investing in technology in both sectors are similar… they both involve the goal of meeting their mission objectives by increasing efficiency and productivity and / or reducing costs. The commercial sector invests in technology to meet objectives and generate more revenue, thereby allowing them to continually reinvest for even greater efficiencies and revenue growth. It’s simply not as clear cut for not-for-profit organizations. Although investing in technology may allow not-for-profit organizations to become more productive and efficient, it doesn’t necessarily translate into generating revenue. In addition, when it comes to deciding whether to upgrade their computer system or rescue animals from a puppy mill, the organization would choose the latter—a more undeniable need. This choice is further supported by funding, which is generally geared towards specific mission-driven projects, and not technological projects.
This doesn’t mean that investing in IT is any less important for not-for-profit organizations. Instead, it means there is an opportunity to (dare I say it is imperative to) adapt learnings from the ‘for-profit’ sector. Only then can community organizations ensure the most effective management of their donations, increased efficiency, reduced administrative overhead and even more focused implementation of other projects that support their goals.
So, how to begin… when it comes to technology, how do you decide what is a “must have” versus a “nice to have”? First and foremost, it is important to note that IT decisions are decisions of senior management, not the board. The role of the board is to determine that it is important for the staff to deliver the mission of the organization in the most effective manner possible. It is important for the board to insist that staff is always conscious of determining what is the highest return on their investment. The members of a great Board of Directors always keep that in mind. However, as someone who regularly wears both hats—I propose the following five pillars as a tool to effectively guide any discussion around technology investment. Projects must be measured against overall mission & strategies. Alignment with these goals is something that needs to be organization-wide; technology has no value by itself.
The five pillars:
Pillar 1: Strategic Alignment
- The extent to which the proposed initiative supports the organization’s medium- to long-term strategic goals and objectives.
Pillar 2: Business Process Impact
- The impact on the requirement to redesign business processes, or undertake process-intensive initiatives.
Pillar 3: Architecture
- The impact of the initiative on organization-wide technical standards and how these standards influence specific initiative and investments.
- The fit of the initiative to enterprise architectural requirements for integration, scalability and availability.
Pillar 4: Direct Payback
- The conventional benefits that a project can deliver, such as cost savings, revenue generation and greater efficiencies.
Pillar 5: Risk
- Identifying the exposure of the proposed investment to failure or under achievement.
Another key to the investment in technology is how to invest. Lower entry costs and more technology applications, like the internet, have to be considered by not-for-profit organizations. Technology is not a back office function. Taking advantage of technological advancements is just one way an organization can improve productivity and lower costs.
In any discussion, keep in mind that technology is rarely the solution—but the means to a solution. If the investment in technology is aligned with the organization’s overall mission & strategies, there is capacity to adopt a project management approach to implementation, and both management and directors understand how technology is an enabler to your success (rather than an operational headache), you are well on your way.
Dr. Catherine Aczel Boivie is the senior VP of IT at Pacific Blue Cross. She is the founding chair of the CIO Association of Canada, a board member with the YWCA Vancouver and a Big Sister. She can be reached at cboivie@pac.bluecross.ca.
