The ISR, Heinz and LTI Department Welcome: David Shpilberg Vice Chairman of CPM Braxis Senior Advisor to Bain & Co Thursday, September 27, 2007, 3pm NSH 3305 Avoiding the Alignment Trap in IT ABSTRACT: Information technology remains a terrible bottleneck to growth in most companies, mainly because executives focus on the wrong remedy for their IT problems. The good news is that is that the problem can be fixed by focusing first on the effectiveness of IT in the organization, not in its alignment with business. Most companies today try to improve their IT performance by focusing on the organizational alignment of IT, making sure that IT and business priorities are tightly linked, that IT spending supports the company's growth strategies, and that there is shared ownership of IT projects. All that is very important, but focusing on those issues before improving the effectiveness of the IT organization, infrastructure and systems, can actually make the problem worse. IT underperformance is most often rooted not just in misalignment but in the excessive complexity of systems, applications and technology infrastructure. Complexity doesn't disappear just because an IT organization learns to focus on aligned projects rather than less aligned ones. On the contrary, it usually gets worse. Non-standard solutions designed to serve each business's unique needs proliferate, making system enhancements and infrastructure improvements ever more difficult to implement. Costs rise, delays mount, and the fragmentation and lack of standardization makes it more difficult for managers to coordinate across business units. Aligning an under-performing IT organization more closely to the businesses it supports, will make the problem worse. That, in a nutshell, is the alignment trap. Bio: David Shpilberg is Vice Chairman of CPM Braxis, a global information technology company in Brazil. He is also a Senior Advisor to Bain & Company, Inc. and the former head of Bain's IT Services information technology practice worldwide. David has over 30 years of consulting and management experience, having worked with companies in the financial services, consumer products and transportation industries. He focuses on helping companies utilize information technology (IT) more effectively, in order to achieve higher levels of profitability and growth. He is experienced in business and IT strategy, business and IT management, IT and business process outsourcing, IT enabled growth, product development, software development, and artificial intelligence. Some of the largest on-line brokerage firms, securities firms, banks, financial information providers and electronic exchanges are among his clients.