Read how a major utilities player eliminated duplication and overcame a lack of alignment between business and IT with a new operational and organizational models designed and implemented by Third Horizon.
An Australian listed company active in gas and oil exploration and production, power generation and energy retailing was experiencing issues with IT management. The business had grown rapidly, but without an integrated approach to IT.
IT functions were duplicated between business unit IT groups and a centralised ‘corporate IT’ function. Business unit-specific IT functions existed without enabling governance. IT and the business simply lacked a strategic partnership.
Third Horizon was engaged to review the IT operating model and recommend changes to improve its alignment with the organisation’s strategic intent and operating context.
Third Horizon undertook a current state analysis of the existing operating and organisational models. This was followed by a gap analysis based on alignment to business strategy and the context IT must operate within and enable.
An optimal operating model for IT was developed along with four operating model options for socialisation and discussion with key stakeholders. And organisational model design was developed, including detailed position descriptions and desired leadership behaviours. Comparative benchmarking to industry and recognised best practice organisational examples were included.
We identified improvement opportunities and enablers needed to successfully support and implement the new operating and organisational models, and developed high-level implementation tasks and timeframes spanning one to 18 months.
We implemented the newly designed IT operating and organisational model, with our areas of responsibilities including organisation, governance, commercial/reporting and change management and communications.
The initiative achieved the client’s aims. Teams transitioned to the new organisational model, new leadership behaviours and culture were established, and the transition to new operating model was communicated clearly across the organisation, creating the platform for closer alignment between business and IT.