Too many IT leaders are stuck managing technology. The best are managing value. 

And here’s the uncomfortable truth: if your ITIL implementation doesn’t start with service strategy, everything downstream is compromised. 

You’ll have busy teams, full backlogs, high velocity — and zero impact. 

 

The Real Problem: IT Funding Isn’t Linked to Strategic Value 

Most IT budgets are stitched together from project scraps, executive pet requests, and annual firefighting funds. 

The result? A disconnected IT operation: 

• No clear line between business demand and IT investment 

• Services that don’t reflect actual business priorities 

• Teams shipping outputs, not delivering outcomes 

Gartner warns: 

“By 2025, 70% of digital investments will fail to deliver the expected business outcomes due to misaligned funding models.” (Gartner, 2023) 

 

✅ The Good: When Service Strategy Shapes the Entire IT Ecosystem 

A strong ITIL service strategy acts like an internal venture capital model: 

• Demand is assessed in business terms 

• Funding follows value streams 

• Services are designed for strategic relevance — not just operational need 

It looks like: 

• Joint business-IT investment boards 

• A living service portfolio aligned to business capabilities 

• Portfolio reviews that kill, evolve, or scale services 

• Service owners accountable for value delivery, not uptime alone 

 

❌ The Bad: When IT Strategy Is Just Project Planning in Disguise 

Too many CIOs think they’re doing strategy — but they’re actually managing projects. 

• The service portfolio is outdated or ignored 

• New demand comes through the loudest voice, not strategic review 

• There’s no view of total cost or value by service 

• IT is seen as a cost centre, not a growth partner 

McKinsey puts it plainly: 

“Only 23% of organisations say their tech strategy is tightly aligned with business strategy.” (McKinsey, 2022) 

 

CIO WAR CHEST: Questions That Cut Through Strategic Fog 

Time to break through the noise. These are your go-to questions for real strategic clarity. 

What % of our IT spend is directly traceable to business value streams? 

Ask: CFO, Finance Business Partner 

Data: Spend mapped by capability or outcome 

Who owns the service portfolio — and is it treated as a strategic asset? 

Ask: Portfolio Lead, BRM, Strategy Director 

Data: Last 3 portfolio reviews, decisions taken 

What’s the kill rate of underperforming services or projects? 

Ask: PMO, Service Governance Board 

Data: Last 12-month project/service attrition rate 

How often are business strategy changes reflected in service design or delivery? 

Ask: Enterprise Architect, Change Portfolio Owner 

Data: Business strategy change log vs service updates 

What are the top 5 services by business value — and who’s accountable for their success? 

Ask: Service Owner, Business Sponsor 

Data: Value map of critical services with named owners 

 

Service Strategy Isn’t a Document. It’s a Discipline. 

You don’t need another strategy deck. You need a new operating rhythm. 

When service strategy drives decision-making, everything changes: 

• Priorities become clear 

• Waste gets cut fast 

• IT earns a seat at the strategy table — and keeps it 

 

Hard Truths & Leadership Calls to Action 

• If your IT strategy doesn’t change periodically, it’s not connected to reality 

• The service portfolio is your value engine. If you don’t know what’s in it, you don’t know what you’re delivering 

• Strategic alignment isn’t a meeting — it’s a governance model 

Next Step for CIOs: 

• Hold a service strategy reset. Review the top 10 services, align them to business goals, and make tough calls. 

• Build a joint IT-business funding model that chases value — not noise. 

You can’t lead with IT if your strategy is just a budget spreadsheet in disguise. Service Strategy isn’t about keeping the lights on—it’s about making the right bets. Most IT strategies are just wish lists of tech; great CIOs turn them into operating models that deliver value on purpose. If your strategy isn’t obsessed with outcomes, you’re just managing spend, not leading IT. 

Next, we dive into Service Design—where we turn strategy into architecture and resilience becomes real. 

If you’re tired of strategy decks that don’t translate to execution, we work with CIOs to weaponise ITIL for real impact. Let’s talk.