Right IT organizational structure can increase innovation, Info-Tech Research

Global IT research and advisory firm Info-Tech Research Group has published its newest research-backed blueprint, Redesign Your IT Organizational Structure. Digital technology and information transparency drive organizations to reorganize around customer responsiveness. As businesses aim to remain relevant in an increasingly competitive market, organizational design must be forward-looking and ready to adapt to rapid pivots in technology and customer demands.

Info-Tech reports that the current IT structure of many organizations does not align with the strategic objectives, and that inefficiencies in how the IT function is currently operating may be present. As a result, IT employees are unclear about their roles and responsibilities, leading to inconsistent service.

However, many organizations struggle to redesign their IT organizational structure because they often create a new organizational chart without including the IT leadership team and business members in these changes.

“An organizational structure is much more than a chart with titles and names,” says Allison Straker, research director at Info-Tech Research Group. “It defines the way that the organization operates on a day-to-day basis to enable the successful delivery of the organization’s information and technology objectives. Moreover, organizational design sees beyond the people that might be performing a specific role.”

According to Info-Tech’s research and insights, understanding the drivers, context, and strategies that will inform the structure are all crucial factors for a successful IT organizational redesign. An organizational design is a change initiative that will require buy-in and requires identifying gaps in delivery, sourcing strategies, customers, and degrees of centralization to be successful.

“Redesigning an IT organizational structure can be a small or large change transformation for your organization,” explains Brittany Lutes, senior research analyst at Info-Tech Research Group. “Create a structure that is equally mindful of the opportunities and the constraints that might exist and ensure it will drive the organization towards its vision with a successful implementation.”

IT design needs to support business objectives, not just IT needs. Info-Tech’s resource outlines several advantages of an IT design. These advantages include:

• Enabling IT to fulfill an organization’s strategic mission and vision of all technical and digital initiatives.
• Assisting the business with clarity on who and where to direct concerns or questions.
• Reducing the likelihood of turnover costs as IT employees understand their roles and importance.
• Creating a method to communicate how the organizational structure aligns with the strategic initiatives of IT.
• Increasing the ability to innovate the organization.

Before undertaking an organizational redesign, business leaders should ensure they engage in change management practices that are needed from the onset to ensure the implementation of an organizational structure.

CT Bureau