Moving the Business Forward -- Part 3

Moving the business forward requires this type of a firm foundation. But it also requires a proven process. That is, IT must be transformational. How do we become transformational? Very briefly, we must possess:

1. Deep Business Knowledge Shackleton was one of but a handful of explorers knowledgeable enough of the Antarctic to even contemplate a trans-Antarctic expedition. But Shackleton possessed something the others did not – a deep knowledge of what it would take to successfully cross the continent. For all his blind spots and inadequacies, Shackleton merited this tribute: “For scientific leadership give me Scott; for swift and efficient travel, Amundsen; but when you are in a hopeless situation, when there seems no way out, get down on your knees and pray for Shackleton.” Likewise, IT must possess a deep understanding of the business. This is more than “business alignment.” To transform the business – to change the very culture of the business – IT must understand every line of business (revenue), IT must understand the drivers of profitability (by LOB, by customer, by transaction), and IT must understand how the products and services deliver customer value. Simply put, IT must think like a CEO and possess such a business-centric perspective.

2. Real Financial Acumen Secondly, we must possess real financial acumen. Shackleton’s tremendous capacity for boldness and daring masked an acute financial mind. Shackleton understood that an expedition of this nature had to have a real return on investment. Some donors wanted to make money from their investment. Some donors wanted to be associated with a “real” scientific discovery. Others, wanted to see England complete a challenge before any other country. As such, Shackleton built an expedition that would achieve all of these objectives. Likewise, IT must possess the ability to understand the return on investment of every project/initiative. IT must understand the cost of capital and the operational expense burden it places on the larger organization. IT must ensure that its “spend” is always measurable. Simply put, to be transformational, IT must think and act like a CFO.
 
3. Best Practices Thirdly, IT must possess a proper understanding of best practices. Shackleton embraced the best known and proven polar expedition practices – clothing, equipment, shipping, food storage, housing, transportation, etc. – but never became enslaved to those practices. He was willing to modify their selection to ensure that his expedition would be a success. Likewise, IT must accept the fact that there are no best practices – only practices that fit best. The idea that the right way to run your business is the same as the right way to run every other business – and you can buy it, pre-packaged, out of the box – is ludicrous. Most of what’s called best practice is nothing more than an assertion by some member of the business punditocracy that a practice that worked for one or a handful of organizations should be practiced by all organizations. The search for best practice is an exercise in close-mindedness. It substitutes external authority for the application of creativity and good judgment. It tries to tell you what’s best is the ceiling – you can rise to no greater heights – rather than defining the floor or starting point. Use everyone else’s good thinking as the starting point for your own, not as a substitute for it. Simply put, to be transformational, IT must think and act like an operational excellence consultant.

4. A “Balanced” Process Mindset Finally, IT must possess an understanding that process is important – it just isn’t as important as interpersonal factors in making IT transformational. Shackleton was a creature of process. His expedition team had clearly demarcated responsibilities and those responsibilities were expected to be carried out like clockwork. Governance was omnipresent and their performance was flawless. Yet, Shackleton was prepared to go to almost any length to keep the party close-knit and under his control. This necessitated that he know each and every member of the team well. For example, knowing that his skilled photographer responded best to flattery and frequently needed to feel important – but if felt slighted quickly became a malcontent spreading discontent among the other team members – Shackleton assigned the photographer to his own (Shackleton’s) tent. This appealed to the photographer’s snobbishness and also minimized his opportunities for gathering other latent malcontents around himself. Likewise, IT must focus on interpersonal factors as much as processes. Failing to focus on the interpersonal and you’ll cripple your ability to make improvements. What do I mean? Remember these three rules related to process improvement:
 • Relationships precede processes. When those responsible for parts of a process don’t trust each other, they will scrutinize the work of their process predecessors, and will often do it over so it is more to their liking. This breaks the process, no matter how well or poorly the process has been designed.
• Processes precedes projects. It is easy to fall into the trap of implementing a software solution for a process problem. Don’t! IT needs to facilitate the introduction of process improvements within the business, assist in engraining those process improvements in the culture of the business, and then automating those process improvements as is possible. Don’t force process change through automation. Remember that process precedes projects.
• Relationships outlive projects. Change always comes at a cost – even positive change. Or stated differently, it’s easy to win every battle and still lose the war. This is because relationships outlive projects. IT must recognize that even the smallest change will meet opposition. Our challenge is to defuse the sources of resistance by collaborating early, losing every tie, disagreeing with deference (or by deferring), conceding early and often, and going beyond win/win (i.e., win/win is for negotiations – win is for leaders). If we do so, our relationships will outlive the change that our projects introduce into the company.

While a firm foundation and a proven process of transformation enables IT to propel the business well down the road, there is more that must be done. Likewise, Shackleton and his group of men had made incredible progress – but they were still stranded on Elephant Island. Elephant Island was an inhospitable place. Food was scarce, the weather was terrible, and it was far from any shipping routes.....