How to turn around a failing IT department

The news over the past few years has had a stream of stories about business disruption as a result of faulty information technology (IT), where dysfunctions have a cascading effect throughout the business. Clearly, success in today's technology-centric climate is increasingly dependent upon an efficient and effective IT activity. However, IT operations are often opaque and not easily understood.

That said, there are symptoms that portend deeper problems for which management should be on the lookout: Constant cost overruns and delayed project completions are sure-fire signs, but less obvious signs can range from a lack of involvement from senior level management, bloated vendor contracts, or improper staffing (both high and low employee turnover rates can signal trouble).

Once a departmental problem is evident, by implementing what we call the "4-S" strategy, companies can regain control over failing IT departments, and transform dysfunction into an operationally streamlined business process that drives bottom-line results. Naturally, this is a large undertaking that cannot be executed successfully without leadership commitment. And more often than not, the magnitude of the task requires management to engage third parties that have the experience in turnaround management. Once there is leadership buy-in on a transformation strategy and the appropriate resources, it is time to begin implementing the steps involved in each stage.

The 4-S strategy involves four phases:

Stop the bleeding. This phase is simple in its intent: determine where the department is floundering and immediately emergency-correct the problems to reduce or eliminate business disruption. At a minimum, this will stop the internal IT problems from further metastasizing.

Stabilize operations. Once the bleeding has stopped, now is the time to concentrate on the operations and get them functioning properly to continue supporting the business. Here is where the foundation of the IT department is corrected. The Technical Architecture is strengthened or rebuilt. The department is reorganized into a lean and effective operating unit, all IT processes and methodologies for good (or best) practices are introduced, and staff training commences. Governance and performance metrics are installed.

Structure the IT department. In this phase, technical and management skills are enhanced and contractors performing routine tasks are replaced with existing staff and new hires. The new organization and processes are refined and adjusted to achieve maximum value, and training continues. Management and users become proactively involved in the IT governance process.

Support the ongoing success of IT operations. All previous steps are for naught if IT leadership does not chart a course for the future. Otherwise, a relapse back into dysfunction is probable.

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