The IT department was in chaos, no$-$one in the IT department knew who was responsible for each IT service. Each IT team focused on their own particular technologies and business users were sent from IT team to IT team when they called for help. The result was that the business departments often could not service the company$’$s customers, which negatively impacted the company$’$s revenue. The new IT director realised that she had to restructure the IT department, but she had to do this with the least amount of disruption possible. This was an important restructuring criterion.

Which one of the following answer options provides the BEST way to address the chaos in the IT department through restructuring while meeting the new IT director$’$s important restructuring criterion and is LOGICALLY CONSISTENT $($logical consistency means that all parts in a paragraph are true in relation to all other parts in the paragraph$)?$

A$.$

The new IT director should re$-$examine the IT team structure. A promising structure is the virtualised organisational structure where an additional silo is created focusing on IT service management. Within this new silo there would be roles such as service owners, process owners, business relationship managers and continual service improvement roles. These roles would work in a cross$-$functional relationship manner with all the other technology teams to instil IT service management practices. The new silo would report directly to the new IT director so that they have enough authority to implement IT service management practices. The downside is that the new silo would have to operate through cross matrix issues as they work with other IT teams to resolve conflicts in priorities.

B$.$

The new IT director should re$-$examine the IT team structure. A promising structure is the localised organisational structure where an additional silo is created focusing on IT service management. Within this new silo there would be roles such as service owners, process owners, business relationship managers and continual service improvement roles. These roles would work in a cross$-$functional relationship manner with all the other technology teams to instil IT service management practices. The new silo would report directly to the business director so that they have enough authority to implement IT service management practices. The downside is that the new silo would have to operate through cross matrix issues as they work with other IT teams to resolve conflicts in priorities.

C$.$

The new IT director should re$-$examine the IT team structure. A promising structure is the centralised organisational structure where everything reports up through a strict hierarchical structure that is highly efficient at executing IT services. Within the centralised organisational structure, most IT service management decision points exist at the upper levels of the hierarchy with lower levels only empowered to carry out the decisions. This means that no management is needed at local sites, there is efficient decision making, there is a high degree of control, costs are lower, and it is a good structure for small companies. The downside is that the centralised organisational structure could result in bottlenecks as the company grows larger, becomes highly distributed or the pace of business and IT change increases.

D$.$

The new IT director should re$-$examine the IT team structure. A promising structure is the distributed organisational structure where major decisions and control points are established centrally at higher levels in the hierarchy. Minor decisions are handled at lower levels as long as they do not violate the goals or principles established centrally. Within the distributed organisational structure, decision and control policies are placed centrally with some autonomy at local levels. For this reason, this approach is preferred for larger organisations, especially those with many locations. The distributed organisational structure ensures that management of IT service management solutions is closer to those that execute them. However, it is more expensive due to redundant roles at each lower level.

E$.$

The new IT director should re$-$examine the IT team structure. A promising structure is the localised organisational structure where an additional silo is created focusing on IT service management. Within this new silo there would be roles such as service owners, process owners, business relationship managers and continual service improvement roles. These roles would work in a cross$-$functional relationship manner with all the other technology teams to instil IT service management practices. The new silo would report directly to the new IT director so that they have enough authority to implement IT service management practices. The downside is that the new silo would have to operate through cross matrix issues as they work with other IT teams to resolve conflicts in priorities.