IT Team’s Organizational Structures
As a company’s technology environment expands, so does the size of its IT organization. Many different organizational-design models can work within IT; however, it is most important to ensure each IT team (and sub-team) has a clear scope of responsibility and authority to make decisions about the resources they deploy and the technologies they implement. Here are some examples of typical IT team organizational structures, one of which may be how your IT department is organized:
Technology-Aligned Teams
This organizational structure was one of the first IT-team constructs and was the default organizational structure during much of the 1990s. It is essentially a hierarchical organizational structure and is classified by technology area, for example, a networking team, a data center team, a database team, and a Web team.
Business-Aligned Teams
This organizational structure was developed in support of large platform systems, such as ERP, HRM, and CRM systems that became popular during the early 2000s. In this organizational structure, IT teams are aligned to business-process functions and serve as a semi-, self-contained IT organization for that business unit.
ITSM Functional Teams
Complex IT projects often require resources from multiple disciplines and a variety of skills and experience. Since project teams are temporary, companies often employ matrix-management approaches, wherein project resources remain aligned to a primary organizational structure (business- or technology-aligned) and are assigned to project teams that may be coordinated with other parts of the IT organization.
Matrix Project Teams
Most business processes rely on more than one IT system to be successful. IT teams are typically responsible for developing, operating, and maintaining integrations between the company’s IT systems as well as with 3rd party systems and services.
Hybrid Business/IT Teams
The digital transformation of business and the increase in integration of technology services and business processes has led many IT teams to consolidate with business-process teams. These hybrid business/IT teams often contain both business-process experts with little technology experience as well as technologists and data experts.
Virtual Teams
Collaboration technology and the wide availability of broadband Internet access have reduced the need for IT teams to be co-located to be effective. Virtual teams are common within the IT industry, enabling companies to leverage both specialized experts and low-cost technology resources from around the globe. Virtual teams are particularly effective for short-term project efforts where team members are also responsible for continuing their day jobs.
Project/Program Management Offices (PMOs)
PMOs are centralized organizational structures designed to provide governance, coordination, and centralized decision-making across distributed IT organizations. PMOs often drive such activities as budgeting, release planning, and risk management where a high degree of cross-functional coordination is required.
Centers of Excellence
Centers of Excellence (CoE) is an organizational structure used in combination with other IT teams’ structures (such as business-aligned teams or matrix-project teams) as a way of capturing, developing, and sharing best practices across the organization. CoEs promote controlled innovation without the risk of autonomous IT teams developing inconsistent ways of working.
Standing-Project Teams
IT projects are temporary endeavors and are designed for a firm conclusion and then the disbanding of the IT team. This can cause challenges for career planning and human-resource management if there is not a structured plan for reassigning resources. A common approach is to organize IT resources into standing teams that move as a unit from project to project. When one project is completed, the entire team transitions to the next assignment.
Resource Pools
Derived from consulting business models, some companies organize IT resources into pools based on job disciplines. When projects and other IT needs arise, resources are pulled from the bench and assigned to an engagement. When the effort is completed, the resource returns to an unassigned state and is reallocated elsewhere.
Geographically-Aligned Teams
Global companies often structure a portion of their IT organization as localized teams aligned to specific geographic regions. This is particularly prevalent in situations where language, cultural factors, or regulatory requirements necessitate a localized presence. Geographically-aligned teams are often used in combination with centralized IT-team structures, PMOs, and CoEs to facilitate global standards and minimize IT costs.
Agile and Scrum Teams
Since 2009, many IT teams have been organized according to Agile and Scrum methodologies, which promote the use of small, self-organized teams. Some companies have attempted to implement Agile and Scrum methodologies within the context of existing IT organizational structures and found it culturally difficult. Implementing Agile or Scrum often requires a reorganization of both resources and changes to operational processes.