The Moment the Objective Function Split

Introduction

In Chapter II, we examined IT that prioritized growth speed above all else, management decisions that failed to design for reproducibility, and IT organizations evaluated solely on stability. This article addresses the moment when these elements simultaneously converged at some point, creating a point of no return—the moment “the objective function of IT split.”

What is an Objective Function?

An objective function defines “what something exists to optimize.” In management, it plays the role of determining what is considered success, what can be sacrificed, and which metrics to prioritize. IT, too, was originally meant to have one clear objective function.

The Split Did Not Happen All at Once

The objective function of IT did not split suddenly one day. During the growth phase, speed was chosen; during the expansion phase, reproducibility was deferred; and in the operational phase, only stability remained. Each was a rational decision at the time. The problem was that the objective function was not updated as the phases changed.

The Same “IT” Became Different Things

As time passed without the objective function being updated, IT split as follows:

• Business IT: Maximizes growth speed.
• Operational IT: Maximizes stability and efficiency.
• Integrated IT: No one takes ownership.

These exist within the same company but are distinct entities solving different optimization problems.

Split Objective Functions Destroy Each Other

IT optimized for growth speed sacrifices stability, while IT optimized for stability resists change. Because reproducibility was not designed, the two cannot connect. As a result, a conflict structure emerges where the business side feels IT is a hindrance, and the IT side feels the business is reckless.

Management “Did Not Choose”

The crucial point is not that management chose the wrong objective function. The most significant decision management made was to “not choose” any single one. How long to prioritize speed, at what stage to switch to reproducibility, when to make stability the main focus—without making these explicit, they attempted to satisfy all simultaneously.

Why the Split Became Entrenched

The split in the objective function eventually becomes embedded in the organizational structure. Business units are evaluated on speed, IT organizations on stability, and no one evaluates reproducibility. Thus, the split becomes a precondition of the organization, not a matter of individual awareness.

Why Integration Could Not Be Achieved Later

Once split, objective functions become extremely difficult to integrate later. The evaluation metrics differ, the time horizons differ, and the experiences of success differ—because each has been optimizing correctly in its own way. Integration requires someone to decide “what to discard” and “what to prioritize,” a judgment that only management can make.

The Split Objective Function is a Warning, Not a Failure

Looking at this, the split objective function may seem like a failure. However, in essence, it was a warning indicating the timing when management should have made IT the subject and the stage at which an integration decision should have been made. Overlooking this warning is what allowed the split to become chronic.

Conclusion of Chapter II

The problem with IT is not technology, people, or organization. It is that management never once chose what to optimize. In the next chapter, we will examine from the business layer how this split objective function ran rampant in the field of business execution.