Smiths Group breaks the mould as its IT department becomes a standalone business unit
The Situation
Smiths Group, a FTSE 100 UK-based manufacturing and technology group with five global business units, had historically operated a classic small conglomerate model, with each Business Unit owning its own suite of back office services to make disconnection relatively straightforward in the case of a sale of a division. A new CIO came into the group with a fundamental challenge to this model, arguing that IT (followed by other back office functions) could massively improve its contribution to group profitability and value creation as a standalone centre of technology excellence, partnering with the group and with each business unit, understanding in depth their business needs and direction, developing appropriate IT strategies, ensuring that the business obtained the right services and expertise (whether internally or externally owned), ensuring that IT support to new or exiting Business Units could still be quickly switched on or off, and introducing / managing the necessary vendor relationships to ensure that all technology-related needs could be satisfied at optimum price levels.
The Task
(1) External advisor to the CIO, working with him to develop his vision into a costed business plan and then, once signed off, a detailed implementation plan.
(2) Continued as an advisor to the CIO during implementation, whilst also introducing specialist consultants to take on key programme roles, reporting to me. These roles covered Programme Manager and HR advisory and interim management.
The Action / Approach
The CIO and I worked up the vision, termed the “Intelligent Client”, and socialised it with key stakeholders both within the IT organisation and in the business units. Typically we would meet and bounce ideas around and I would then document them as either a basis for further discussion or as a component of the business plan.
Following sign-off of the business plan, the CIO formed a Steering Board, on which I sat, with overall responsibility for keeping the programme on track and specific responsibility for the delivery work of the Programme Manager and the HR experts I had introduced into the team. This work entailed:
– advising on formation of the IT Business – known as Business Information Services (BIS)
– writing papers and getting them signed off by the Steering Board
– agreeing Programme Manager and HR objectives and overseeing delivery
– facilitating and participating in workshops with client staff, consultants and external IT partners and providers
– ad hoc advice to the CIO and other Steering Board members
– constant review and refinement of the Intelligent Client vision
– development of Service Level Agreements, Critical Success Factors and Key Performance Indicators to govern the relationships between BIS, the business and external suppliers.
The Result
BIS was successfully created, in line with time deadlines, taking over 20% off the IT budget and quickly delivering improved service levels and user feedback. The CIO was promoted into a senior executive business role, in which he again engaged me and members of my team to work on change projects.
