A Framework to Enhance Business and Information Technology Alignment Through Incentive Policy

Abstract

The alignment of Business and IT is still an important concern of IT managers. Alignment, as most others organization challenges, is essentially promoted by people. So, adequate people´s incentives should be accordingly designed with that purpose in mind. A framework that enhances alignment through an incentive policy is proposed, relating incentive initiatives with alignment criteria. Framework uses Luftman instrument, where its dimensions represents alignment opportunities that should be explored. The used incentive instrument is based on the WorldatWork model. An incentive policy should consider five areas; compensation, benefits, work-life, performance/recognition and development/career opportunities. Strategic alignment dimension is composed by six areas; communications, competency/value measurements, governance, partnership, technological scope and skills. The framework supports the definition of an incentive policy enhancing general and specific alignment dimensions. Theorization about some possible direct relations between the dimensions of an incentive policy and alignment is made, helping the incentive policy definition.

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