Gartner Research

Effective IT Organizations: Design Matters

Published: 01 July 2008

ID: G00160194

Analyst(s): Patrick Meehan , David Pack

Summary

Successful CIOs approach organizational design systematically, defining a need for change, understanding the impacts and executing a change management plan. Well-designed organizations endure changing business models and economic climates with minor modification.

Table Of Contents

Foreword

Executive summary

  • Evaluate the current status of the IT organization
  • Design the new IT organization
  • Showcase IT effectiveness via structures, competencies and roles
  • Allow for continual, opportunistic change without reorganization

Evaluate the current status of the IT organization

  • The need for a full-blown reorganization cannot be determined from the org chart alone
  • The two levels short of a full-blown reorganization
  • A full-blown reorganization’s impact
  • The total cost of reorganizing

Design the new IT organization

  • Articulating IT’s role defines the design program
  • Sketching a macro-architectural view focuses organizational segments on supporting IT’s role
  • Align the demand side to mirror the appropriate business operational view

Showcase IT effectiveness via structures, competencies and roles

  • Internal IT structures should control costs without squelching innovation
  • Structures facing outward from IT manage demand and maximize IT’s contribution
  • Structures external to IT keep everyone honest

Allow for continual, opportunistic change without reorganization

  • The next-generation org chart
  • Evolutionary and opportunistic structures
  • Success indicators
  • Conclusion

Appendix: Case studies

  • Case Study: BankCo—Rebuilding the organization for efficiency
  • Case Study: Black & Decker HHI—IT organizational form following function
  • Case Study: CPR—Defining a new structure is easy; managing the change is hard
  • Case Study: DentalCo—Organizing for information and for change
  • Case Study: FinancialCo—Reorganizing to improve services and business relationships
  • Case Study: INPDAP—Creating business process change with IT reorganization
  • Case Study: MTR—Reorganizing and redefining a merged organization
  • Case Study: Pepperdine University—Prepping the IT org to get a seat at the table
  • Case Study: Posten AB—Big changes aren’t necessarily reflected on an org chart
  • Case Study: Providence Health Plans—Expeditious organizational remodeling for long-term evolution

Further reading

  • Gartner EXP reports
  • Gartner EXP HR reports
  • Core research

©2019 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its affiliates. This publication may not be reproduced or distributed in any form without Gartner’s prior written permission. It consists of the opinions of Gartner’s research organization, which should not be construed as statements of fact. While the information contained in this publication has been obtained from sources believed to be reliable, Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. Although Gartner research may address legal and financial issues, Gartner does not provide legal or investment advice and its research should not be construed or used as such. Your access and use of this publication are governed by Gartner’s Usage Policy. Gartner prides itself on its reputation for independence and objectivity. Its research is produced independently by its research organization without input or influence from any third party. For further information, see Guiding Principles on Independence and Objectivity.

Already have a Gartner Account?

Become a client