Should a CIO Bother With That ITIL Stuff?

Johnson & Johnson Had A ProblemJ&J's IT department was able to use ITIL to decrease
I'm sure that when you picture yourself becoming ahow long it took to resolve problems. This in turn
CIO in the future you see yourself sitting at theresulted in J&J's systems having more uptime and
corporate strategy table with the CIO using your deeptherefore allowing more work to be done quicker.
understanding of IT to help the company move fasterNeedless to say, end users were very happy about
and do more. Umm, one problem with that vision -this.
you're not going to make it to the big table if you don'tSure happy customers are nice, but what about the
solve the problem of run-away IT costs. Johnson &money? J&J says that if you count both cost savings
Johnson's CIO had this very same problem and sheand costs that they were able to avoid, then starting in
tackled it using the ITIL framework. Maybe this would2005 they believe that they've been able to save at
be a good time to look into that ITIL thing...least $30M a year.
Just What Is the ITIL?Why Did This Solution Work
You've probably heard about the IT InfrastructureITIL is not the only way to standardize the way that a
Library (ITIL); however, do you really understand what itCIO runs his / her IT department. Other methods
is? First off, it's an old (10 years is old by IT standards)include the Capability Maturity Model (CMM), Control
set of best practice guidelines for how to do IT serviceObjectives for Information and Related Technology
management. It was originally developed by the U.K.(COBIT), Six Sigma, and Lean Manufacturing. However,
government in order to help them do a better job ofITIL has been around the longest and its been shown
modeling their outsourced IT projects. It's quite popularto work.
in European IT shops and is only now starting to pickTaking the ITIL path was the right choice for J&J for a
up steam in the U.S.number of reasons. Not the least of which was it
What makes the ITIL so attractive is that it allows aprovided J&J's CIO with a way to both quantify and
CIO to run the IT department like a business. This ismeasure the quality of the service that J&J's IT
exactly what Johnson & Johnson's CIO was lookingdepartment was delivering. Who was the wise man
for back in 2001. J&J was going gang-busters from awho said "If you can't measure it, you can't improve it"?
business point-of-view; however, their IT costs wereWhat All Of This Means For You
going through the roof - they were going up by overWhen you become CIO you'll be facing the same twin
10% every year.set of conditions that can keep you from doing all of
J&J had previously tried the old stand-by CIO trick ofthat strategic stuff that you want to be doing: rising IT
pulling together IT operations from all around thecosts and ever increasing user demands for more
sprawling company into a single centralizedservice. You are going to have to deal with this issue
organization in order to get on top of their costs.and do it quickly.
However, even though now they knew where theITIL is not a new "flavor of the day" approach to
money was going, they still were seeing out-of-controlsolving the challenges that an IT department faces. In
growth on infrastructure tasks. Something had to befact, it's a rather old approach. However, if you're willing
done!to make the investment in time and energy that it can
J&J's CIO decided to implement a program based ontake, ITIL just might be the solution that you are looking
the ITIL. Now mind you, this is not some silver-bulletfor.
magic cure-all. Instead, the ITIL can help with specificKnowing that there is a solution framework out there
parts of running an IT shop. Specifically if you go aboutthat works is what allows most CIOs to be able to
implementing ITIL correctly, your IT department cansleep at night. Actually implementing a solution and
boost the quality of service that it is providing to thesaving the company, well that's a job that will be
rest of the company.waiting for you when you become the CIO.