Tuesday, August 7, 2012
Moving the Business Forward (Part 5)
1. Innovation Killers
Like Shackleton, whose undertaking was criticized for being too “audacious” (no one had done what he had done and it took nearly 40 more years before the expedition was tried again) and who was disappointed time after time by promised grants of financial aid which failed to materialize -- IT needs to manage innovation killers. If Shackleton had listened to those around him, he would never tried a trans-Antarctic expedition. Likewise, if IT listened to those innovation killers who reside in every company – policy hawks (i.e., those that state the project/initiative is inconsistent with established corporate polices), metric misers (i.e., those that de-rail projects/initiatives because they cannot be measured using established budget metrics), penny pinchers (i.e., those that oppose projects because they cost money and have questionable ROI’s), and devil advocates (i.e., those that promise to support the project/initiative but cannot be found when the project/initiative is launched – much less as it proceeds) – innovation would be stopped before it gets started.
2. No Constraints
Secondly, IT needs to make sure that no constraints are placed on innovation. Shackleton’s expedition was at least 40 years too early. The technology needed – air support, motorized vehicles, telecommunications – simply did not exist. Yet, this did not stop him.
Likewise, IT can only be innovative if we eliminate all constraints. Borrowing from Jack Bergstrand and his book, “Reinventing Your Enterprise”, we need to ask questions like:
· “If you could start from scratch? What would you do?” (Clean Sheet)
· “What would your company look like with no fixed assets?” (A new asset structure)
· “If you cut your transactions in half, what would your company look like?” (Fewer moving parts)
IT needs to have a passion for something different. We need to think (and encourage) unconventional thinking. We need to challenge people to go beyond what they think they can accomplish so that they can be a catalyst to generate innovative ideas. That is, we need to facilitate the very alteration of the organizational mindset.
3. A New Business Model
Thirdly, we need to recognize that innovation is more than just achieving a positive ROI. It is more than being transformational. Innovation is creating a new model of business. It is creating a new line of business. Shackleton’s expedition was not just a faster, more efficient accomplishment of what had been done before. It was something new – it was a new challenge never undertaken. It was not making the race horse run faster. It was the introduction of a horseless carriage!
Likewise, innovation demands that IT do more than make the customer portal faster. It is more than virtualizing servers. It is more than moving applications to the cloud. It is more than displaying KPI’s on smart phones. It is more than replacing laptops with tablets. IT cannot be truly innovational until it creates a new business model, a new line of business, or a new source of revenue.
To be innovational, IT must create a mobile app that allows pizza to be ordered on a telephone. IT needs to make it possible to print labels on a truck so that the vehicle can pick up returned merchandise that is now considered hazardous (Did you know that hairspray is considered hazardous when sent for disposal?).
Andrew Isaacs, a professor at UC Berkeley’s Haas School of Business has stated that there are three types of innovation. The easiest is a product or service innovation. The second type is a process innovation which involves a cultural change. The toughest type of innovation is business model innovation (the one we are discussing) because it changes the way an entire industry/company works. That is the type of innovation that IT needs to deliver.
4. Execution
Fourthly, we need to recognize that innovation is more than just a set of ideas. Shackleton had a great set of plans for his expedition. He spent months acquiring the countless items of equipment, stores, and gear that would be needed. Sledges were designed and tested in the snow-covered mountains of Norway. A new type of ration intended to prevent scurvy was tried out, as were specially designed tents. But innovation is more than just a set of ideas. And Shackleton had to execute a plan based upon those ideas.
Likewise, we need to not fall into the trap of placing too much emphasis on ideas and not nearly enough emphasis on execution. There are more than 10,000 climbers each year who attempt to reach the heavily glaciated summit of Mount Rainier in the Northwest. It is perhaps the world’s most difficult climb that is accessible to novices, so long as they are accompanied by expert guides.
The first hour of the climb is easy. Each subsequent hour is harder. At dawn, the climbers get their first glimpse of the summit – majestic and inspiring. With each step, however, their labors become more excruciating. Muscles ache. The air becomes thinner. Some of the climbers become dizzy. In fact, nearly 50% of those that start out, turn back failing to achieve the summit. For those that persevere, the summit brings jubilation and exhilaration. Months of preparation comes to fruition. To be atop Mount Rainier is to sense that you are on top of the world. The city of Seattle lies more than fourteen thousand feet below.
But their adventure has only begun. They still have to get back down. And the descent from Rainier’s summit is actually the most difficult part of the expedition. Climbing a flight of stairs may be harder than descending but this is not the case with a descent from Mount Rainier. It is a dangerous mountain, one that claims a few lives each year. The snow on the surface of the glacier can collapse into interior caves and tunnels, and climbers can slip into deep crevasses. As each hour passes, sunlight and rising temperatures soften the snow and increase the risk. Added to these risks is the fact that climbers are deeply fatigued and prone to mistakes. No matter how many times they are told of the dangers in advance, climbers naturally relax at the summit. The glamorous part of the quest is over. The big aspiration – the big dream – has been fulfilled. The trip down is an afterthought.
There is a Rainier-like summit in innovation. It occurs when an organization says yes! That’s a great idea! Let’s take it to market! Let’s make it happen! Getting to the summit can be difficult. The challenge of reaching the summit lures many. It captures the imagination. It is easy to get others excited. Getting to the summit can seem like the fulfillment of a dream, but it is not enough. After the summit comes the other side of innovation – the challenges beyond the idea – execution.
5. Risk-Taking
Finally, innovation requires that we take risks. Shackleton would never have saved the crew of the Endurance without taking on risk. The 800 mile boat ride in an open boat with only a sextant and a map is ridiculous. Climbing a mountain without adequate gear and one that only experts try – is insane. But spectacular success requires taking risks.
Likewise, innovation requires that IT takes risks. The interesting thing about this is that risk-taking is not in the DNA or makeup of most IT leaders. According to an article in CIO Magazine in November, 2010 innovation lags in IT departments because:
· Of a fear of failure
· Only 20% of CIO’s consider themselves as innovational
· IT became a cost center
We need to break this cycle of fear. To become innovative, IT must take risks. It must demonstrate an obsessive quest for results that create/allow a climate for risk taking and innovation. We must (within reason) tolerate failure since each failure can be used as a learning event, or a step in the right direction. And we must have a relentless commitment to deliver specific, quantifiable outcomes. This will assist the organization in achieving a “breakthrough” strategy. The best IT shops never stop learning.
Abraham Lincoln’s personally reviewed every letter requesting that the government purchase a particular invention that would shorten the war. He was astute enough to realize the importance of gaining new and effective weapons as soon as was humanly possible. As a result, Lincoln oversaw the implementation/rollout of pontoon bridges, hot-air reconnaissance balloons, ironclad ships, and breech-loading rifles amongst others.
The ability of IT to entertain innovative ideas and ask for help/permission in implementing them may seem to be obvious. But the sad fact is that too many IT shops resign themselves to the limits imposed on them by flawed systems rather than re-thinking those systems. Given the pace of technology change, IT simply must create a climate of risk-free entrepreneurship necessary to foster effective innovation. (Donald Phillips -- "Lincoln on Leadership")
Where is Safety-Kleen in this journey? It is a very interesting question. As I prepared this presentation, I was forced to look myself in the mirror. I was forced to hold myself up to the standard that I was creating. This is what I found:
· We have built a firm foundation. We have a multi-year plan that lays out a business, application, and technology blueprint. This multi-year plan is at its core, business-driven technology enablement. It is consistent in both timing and focus to that of the company’s 3/5 year plan. We are seen by the business as being credible. Our solutions are highly customer-centric.
· We have been transformational. The business-driven technological solutions have addressed real business needs. They have yielded increased efficiency, higher revenues, lower costs, and lower risks. They have introduced practices that fit best within S-K. They have assisted in building a culture of continual improvement.
· We aspire to be innovational. While we have navigated the “shark-infested” waters past innovation killers, while we have removed most constraints from our employees imploring them to “think about the box”, while we have proven to be very good at execution, and while we are more than willing to take on risks – we have not yet introduced technology to create a new line of business or a new model of doing business. That is our next goal!
I tell you this for transparency purposes. I, S-K, have not arrived. We have built a firm foundation. We have been very transformational. But the mountain to be scaled to be innovational is a very high standard. I hope that this presentation provides you with a picture of how you can become innovational and the things you need to do along the way to make it possible.
Monday, July 2, 2012
Moving the Business Forward (Part 4)
Consequently, Shackleton decided to risk an open-boat journey in a lifeboat to the distant South Georgia whaling station, where he knew help was available. To undertake this journey was a feat of unparalleled bravery. South Georgia was 800 miles to the northeast. It was an island that was no more than 25 miles wide at its widest point. And they only had a sextant and a map to navigate the trip. The smallest of navigational errors would mean missing the island and certain failure.
The strongest of the lifeboats, christened James Caird after the expedition's chief sponsor, was chosen for the trip. The ship's carpenter made various improvements, including raising the sides, strengthening the keel, building a makeshift deck of wood and canvas, and sealing the work with oil paint and seal blood. Shackleton chose five companions for the journey. He also refused to pack supplies for more than four weeks, knowing that if they did not reach South Georgia within that time, the boat and its crew would be lost.
The James Caird was launched on April 24th, 1916. What lay in front of them? Gales (this sea was notorious for stormy weather), 80-90’ rollers, and undoubtedly the greatest danger was ice – especially at night. One single collision with an unseen fragment could have ended the journey in a moment. Fifteen days later, on May 8th, due to Worsley's navigational skills, the cliffs of South Georgia came into sight. They were only three miles off the coast. Just as victory was in their grasp, the whole complexion of things suddenly changed. A powerful storm descended upon them. The wind blew at an estimated 80 knots. 40’ rollers buffeted them. These hurricane-force winds prevented any possibility of landing. The party was forced to ride out the storm offshore, in constant danger of being dashed against the rocks on shore. They would later learn that the same hurricane had sunk a 500-ton steamer bound for South Georgia from Buenos Aires.
Finally, on the tenth of May, 1916, they were standing on the island from which they had sailed 522 days before. They had accomplished the impossible. They had planned only on getting food and water and sail around to the other side of the island to the whaling station. But the Caird’s rudder had been lost while coming ashore. Also, they lacked the strength to haul the heavy boat on to land to make the repair. Plus, to tear apart the decking to lighten the boat would have made it useless for the journey around the island to the whaling station given the turbulent weather patterns at this time of the year.
Shackelton came to the conclusion that instead of sailing to the whaling station, three members of the party would go overland to bring help. By sea it would have been a voyage of more than 130 miles. By land it was a scant 29 miles in a straight line. The only difference between the two was that in the three-quarters of a century that men had been coming to South Georgia, not one man had ever crossed the island – for the simple reason that it could not be done. A few of the peaks on South Georgia rose to 10,000 feet which certainly is not high by mountain climbing standards, but the interior of the island has been described by mountain climbing experts as impassable. Shackleton knew this – and yet there was no choice.
Two inch screws were taken from the boat and attached to their shoes. They took food for 3 days, no sleeping bags, a single stove, two compasses, a pair of binoculars, a single carpenter’s adz for use as an ice pick, and 50 feet of rope. They left base camp a couple of hours before dawn broke.
Having no map of the island interior and needing to choose speed over reconnaissance (they were unprepared to weather a storm on the side of the mountain), they continually found themselves scaling a summit only to have to retrace their steps and try to find a different way around or over the peak due to plunging chasm’s and un-crossable crevices.
Finally, well after 4 o’clock on the first day, they again struggled to the top. The ridge was so sharp that Shackleton was able to sit astride it, one leg on either side. Though the descent was steep, it was not so bad as the others had been.
Fog began to roll in. There was no need to explain the situation. If they stayed where they were, they would freeze in a matter of hours. They had to get lower and with all possible haste. So he suggested they slide. What if they hit a rock? What if the slope did not level off? What if there was another precipice? Shackleton responded – “Could they stay where they were?”
Forming a human toboggan, they slid down the face of the mountain and dropped over 2,000 feet in a matter of a minute – plowing to a stop in a snow bank. They felt that special kind of pride of a person who in a foolish moment accepts an impossible dare – then pulls it off to perfection.
Though they had to descend another 5,000 feet, hike through the night, and jump 25 feet over a waterfall -- the difficult part of the journey was over. They made the whaling station before dusk on the second day of their climb/descent.
The first to see them were a group of children. They came running into the camp terrified. Shackelton’s group came, not from the sea, but from the interior of the island. They were heavily bearded, and their faces were almost black (from the constant burning of seal blubber and the absence of soap) except for their eyes. Their hair was as long as a woman’s and hung down almost to their shoulders. Their clothing was strange. It was not the sweaters and boots worn by seamen. Instead, they were in ragged parkas.
The first adult to greet them learned the men spoke in English. He took them to the manager of the facility who yelled: “Who the hell are you?” The man in the center stepped forward and said – “My name is Shackleton.” The manager reportedly turned and wept.
It should be noted that the next successful crossing of South Georgia on land was not until October 1955 (40 years later), by the British explorer Duncan Carse, who traveled much of the same route as Shackleton's party using modern equipment and an extensive set of supplies.
Shackleton immediately sent a boat to pick up the three men from the other side of South Georgia while he set to work to organize the rescue of the Elephant Island men. His first three attempts were foiled by sea ice, which blocked the approaches to the island. He appealed to the Chilean government, which offered the use of Yelcho, a small seagoing tug from its navy. Yelcho reached Elephant Island on August 30th, 1917, and Shackleton quickly evacuated all 22 men.
Why would I tell this story? It is because there are many parallels between Shackleton’s journey and our journey to propel the business forward.
• Both endeavors require a firm foundation,
• Both endeavors require a proven process of transformation, and
• Both endeavors require a culture of innovation.
Let us briefly consider how Shackleton’s expedition instructs us in how to create of culture of innovation....
The strongest of the lifeboats, christened James Caird after the expedition's chief sponsor, was chosen for the trip. The ship's carpenter made various improvements, including raising the sides, strengthening the keel, building a makeshift deck of wood and canvas, and sealing the work with oil paint and seal blood. Shackleton chose five companions for the journey. He also refused to pack supplies for more than four weeks, knowing that if they did not reach South Georgia within that time, the boat and its crew would be lost.
The James Caird was launched on April 24th, 1916. What lay in front of them? Gales (this sea was notorious for stormy weather), 80-90’ rollers, and undoubtedly the greatest danger was ice – especially at night. One single collision with an unseen fragment could have ended the journey in a moment. Fifteen days later, on May 8th, due to Worsley's navigational skills, the cliffs of South Georgia came into sight. They were only three miles off the coast. Just as victory was in their grasp, the whole complexion of things suddenly changed. A powerful storm descended upon them. The wind blew at an estimated 80 knots. 40’ rollers buffeted them. These hurricane-force winds prevented any possibility of landing. The party was forced to ride out the storm offshore, in constant danger of being dashed against the rocks on shore. They would later learn that the same hurricane had sunk a 500-ton steamer bound for South Georgia from Buenos Aires.
Finally, on the tenth of May, 1916, they were standing on the island from which they had sailed 522 days before. They had accomplished the impossible. They had planned only on getting food and water and sail around to the other side of the island to the whaling station. But the Caird’s rudder had been lost while coming ashore. Also, they lacked the strength to haul the heavy boat on to land to make the repair. Plus, to tear apart the decking to lighten the boat would have made it useless for the journey around the island to the whaling station given the turbulent weather patterns at this time of the year.
Shackelton came to the conclusion that instead of sailing to the whaling station, three members of the party would go overland to bring help. By sea it would have been a voyage of more than 130 miles. By land it was a scant 29 miles in a straight line. The only difference between the two was that in the three-quarters of a century that men had been coming to South Georgia, not one man had ever crossed the island – for the simple reason that it could not be done. A few of the peaks on South Georgia rose to 10,000 feet which certainly is not high by mountain climbing standards, but the interior of the island has been described by mountain climbing experts as impassable. Shackleton knew this – and yet there was no choice.
Two inch screws were taken from the boat and attached to their shoes. They took food for 3 days, no sleeping bags, a single stove, two compasses, a pair of binoculars, a single carpenter’s adz for use as an ice pick, and 50 feet of rope. They left base camp a couple of hours before dawn broke.
Having no map of the island interior and needing to choose speed over reconnaissance (they were unprepared to weather a storm on the side of the mountain), they continually found themselves scaling a summit only to have to retrace their steps and try to find a different way around or over the peak due to plunging chasm’s and un-crossable crevices.
Finally, well after 4 o’clock on the first day, they again struggled to the top. The ridge was so sharp that Shackleton was able to sit astride it, one leg on either side. Though the descent was steep, it was not so bad as the others had been.
Fog began to roll in. There was no need to explain the situation. If they stayed where they were, they would freeze in a matter of hours. They had to get lower and with all possible haste. So he suggested they slide. What if they hit a rock? What if the slope did not level off? What if there was another precipice? Shackleton responded – “Could they stay where they were?”
Forming a human toboggan, they slid down the face of the mountain and dropped over 2,000 feet in a matter of a minute – plowing to a stop in a snow bank. They felt that special kind of pride of a person who in a foolish moment accepts an impossible dare – then pulls it off to perfection.
Though they had to descend another 5,000 feet, hike through the night, and jump 25 feet over a waterfall -- the difficult part of the journey was over. They made the whaling station before dusk on the second day of their climb/descent.
The first to see them were a group of children. They came running into the camp terrified. Shackelton’s group came, not from the sea, but from the interior of the island. They were heavily bearded, and their faces were almost black (from the constant burning of seal blubber and the absence of soap) except for their eyes. Their hair was as long as a woman’s and hung down almost to their shoulders. Their clothing was strange. It was not the sweaters and boots worn by seamen. Instead, they were in ragged parkas.
The first adult to greet them learned the men spoke in English. He took them to the manager of the facility who yelled: “Who the hell are you?” The man in the center stepped forward and said – “My name is Shackleton.” The manager reportedly turned and wept.
It should be noted that the next successful crossing of South Georgia on land was not until October 1955 (40 years later), by the British explorer Duncan Carse, who traveled much of the same route as Shackleton's party using modern equipment and an extensive set of supplies.
Shackleton immediately sent a boat to pick up the three men from the other side of South Georgia while he set to work to organize the rescue of the Elephant Island men. His first three attempts were foiled by sea ice, which blocked the approaches to the island. He appealed to the Chilean government, which offered the use of Yelcho, a small seagoing tug from its navy. Yelcho reached Elephant Island on August 30th, 1917, and Shackleton quickly evacuated all 22 men.
Why would I tell this story? It is because there are many parallels between Shackleton’s journey and our journey to propel the business forward.
• Both endeavors require a firm foundation,
• Both endeavors require a proven process of transformation, and
• Both endeavors require a culture of innovation.
Let us briefly consider how Shackleton’s expedition instructs us in how to create of culture of innovation....
Wednesday, May 30, 2012
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.....
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.....
Tuesday, May 8, 2012
Moving the Business Forward -- Part 2
Shackleton’s incredible journey is a great framework for our discussion on how IT can move the business forward. For like Shackleton’s imperial trans-Antartic expedition – moving the business forward requires a firm foundation. Both require:
1. A Blueprint/A Plan Whereas Shackleton spent two years selling his audacious plan to sponsors (wealthy donors, scientific societies, and governmental entities), IT must expect that it will take weeks or months to sell its plan to the board, the executive team, and/or the “business.” And like Shackleton’s plan, IT’s multi-year plan must be well thought-out, understandable, and business-centric. The plan is the pathway from our current business model to our future business model. It should be a multiyear plan focused on implementation with expected timeframes, investments, and value creation. Specifically, a successful multi-year plan must:
• Define and design a business, application, and technology blueprint and architecture before you begin investment and construction,
• Enforce a “common way” for development and quality engineering, and
• Be disciplined in its approach to program and project management (Feld)
2. Business Alignment Whereas Shackleton needed to make sure that the objectives of his expedition aligned with the goals & objectives of his sponsors (e.g., being associated with the fame of achievement, being a serious scientific endeavor, national prestige, etc.), IT must be sure that it has critical business buy-in. And the buy-in of the business is much more likely if IT’s multi-year plan:
• Is business-driven technology enablement (rather than a technology solution looking for a business problem).
• Is consistent in both timing and focus to that of the company’s 3/5 year plan,
• Supports and enables the company’s 3/5 year plan, and
• Can be explained in part (or in whole) in solely business terms.
We need to become students of the business and learn enough to speak the language of the business and understand their real issues. Forward-thinking IT leaders change their focus from “aligning IT with the business,” to instilling a philosophy that says: “We are the business.”
3. Credibility A firm foundation also assumes that one has credibility. Whereas Shackleton had the “gravitas” to pitch his audacious expedition – he had twice been to the Antarctic and once got within 97 miles of the pole (which is closer than anyone until Amundsen reached it in 1912) – IT can only pitch a multi-year plan if it is seen as being credible. How does IT earn credibility? IT earns credibility by consistently delivering projects on-time, on-budget, and as designed. If your IT organization hasn’t achieved basic credibility, don’t expend a lot of your time and energy asking for funds to transform. Don’t expend a lot of your time and energy asking for funds to innovate. If IT can’t:
• Complete projects on, time, within budget, and with all deliverables intact,
• Keep the servers and networks up with reasonable levels of performance, and
• Solve the problems average end-users have without undue delay (Lewis)
Then asking for funds to be transformational or innovational is not warranted. Before you can be transformational or innovational, you have to be credible.
4. Customer-Centricity Lastly, a firm foundation requires customer centricity. Whereas Shackleton recognized that his expedition must serve his “fans” (he was an early 20th century rock star – he promised to write a book upon his return, he sold the rights to the motion pictures and still photographs, etc.), IT must seek to serve its “customers” -- those who make or influence buying decisions. That is, the real, paying, external customer. If our customer portals, our billing statements, our schedules, our mobile apps, etc. do not yield high levels of customer satisfaction and customer value – does anyone care whether our new technological solutions win magazine and industry awards? Customer-centricity starts with understanding and really caring about customer goals and concerns.
1. A Blueprint/A Plan Whereas Shackleton spent two years selling his audacious plan to sponsors (wealthy donors, scientific societies, and governmental entities), IT must expect that it will take weeks or months to sell its plan to the board, the executive team, and/or the “business.” And like Shackleton’s plan, IT’s multi-year plan must be well thought-out, understandable, and business-centric. The plan is the pathway from our current business model to our future business model. It should be a multiyear plan focused on implementation with expected timeframes, investments, and value creation. Specifically, a successful multi-year plan must:
• Define and design a business, application, and technology blueprint and architecture before you begin investment and construction,
• Enforce a “common way” for development and quality engineering, and
• Be disciplined in its approach to program and project management (Feld)
2. Business Alignment Whereas Shackleton needed to make sure that the objectives of his expedition aligned with the goals & objectives of his sponsors (e.g., being associated with the fame of achievement, being a serious scientific endeavor, national prestige, etc.), IT must be sure that it has critical business buy-in. And the buy-in of the business is much more likely if IT’s multi-year plan:
• Is business-driven technology enablement (rather than a technology solution looking for a business problem).
• Is consistent in both timing and focus to that of the company’s 3/5 year plan,
• Supports and enables the company’s 3/5 year plan, and
• Can be explained in part (or in whole) in solely business terms.
We need to become students of the business and learn enough to speak the language of the business and understand their real issues. Forward-thinking IT leaders change their focus from “aligning IT with the business,” to instilling a philosophy that says: “We are the business.”
3. Credibility A firm foundation also assumes that one has credibility. Whereas Shackleton had the “gravitas” to pitch his audacious expedition – he had twice been to the Antarctic and once got within 97 miles of the pole (which is closer than anyone until Amundsen reached it in 1912) – IT can only pitch a multi-year plan if it is seen as being credible. How does IT earn credibility? IT earns credibility by consistently delivering projects on-time, on-budget, and as designed. If your IT organization hasn’t achieved basic credibility, don’t expend a lot of your time and energy asking for funds to transform. Don’t expend a lot of your time and energy asking for funds to innovate. If IT can’t:
• Complete projects on, time, within budget, and with all deliverables intact,
• Keep the servers and networks up with reasonable levels of performance, and
• Solve the problems average end-users have without undue delay (Lewis)
Then asking for funds to be transformational or innovational is not warranted. Before you can be transformational or innovational, you have to be credible.
4. Customer-Centricity Lastly, a firm foundation requires customer centricity. Whereas Shackleton recognized that his expedition must serve his “fans” (he was an early 20th century rock star – he promised to write a book upon his return, he sold the rights to the motion pictures and still photographs, etc.), IT must seek to serve its “customers” -- those who make or influence buying decisions. That is, the real, paying, external customer. If our customer portals, our billing statements, our schedules, our mobile apps, etc. do not yield high levels of customer satisfaction and customer value – does anyone care whether our new technological solutions win magazine and industry awards? Customer-centricity starts with understanding and really caring about customer goals and concerns.
Tuesday, April 17, 2012
Moving the Business Forward
The order to abandon ship was given at 5 p.m. For most of the men, however, no order was needed because by then everybody knew that the ship was done and that it was time to give up trying to save her. There was no show of fear or even apprehension. They had fought unceasingly for three days and they had lost. They accepted their defeat almost apathetically. They were simply too tired to care.
She was being crushed. Not all at once, but slowly, a little at a time. The pressure of ten million tons of ice was driving in against her sides. And dying as she was, she cried in agony. Her frames and planking, her immense timbers, many of them almost a foot thick, screamed as the killing pressure mounted. And when her timbers could no longer stand the strain, they broke with a report like artillery fire.
By 7 p.m., all essential gear had been transferred to the ice, and a camp of sorts had been established on a solid floe a short distance to starboard. The lifeboats had been lowered the night before. The date was October 27, 1915. The name of the ship was Endurance. The position was in the icy wasteland of the Antarctic’s treacherous Weddell Sea, just about midway between the South Pole and nearest known outpost of humanity, some 1,200 miles away.
Much is said today about the need for:
• IT to have a roadmap,
• IT to obtain critical business buy-in (i.e., to be aligned with the business),
• IT to prepare for the inevitable changes the future will bring (i.e., IT becoming a shared service – Future State CIO), and
• CIO’s to become game-changers (CIO Executive Council)
The bottom line is that IT needs to move the business forward.
But how does IT move the business forward? How does it become transformational? How does it become innovational?
While I do not have all the answers – I myself and S-K are on this same journey – let me state that moving the business forward (at a minimum) requires:
• A firm foundation,
• A proven process, and
• A culture of innovation.
Or stated differently, IT needs to be:
• Foundational,
• Transformational, and
• Innovational.
I plan on using the story of Shakleton’s Incredible Journey (as told by Alfred Lansing) as a framework for our discussion on moving the business forward.
Sir Ernest Shackleton was an English explorer and one of the principal figures of the period known as the Heroic Age of Antarctic Exploration. After the race to the South Pole ended in 1912 with Roald Amundsen's conquest, Shackleton turned his attention to what he said was the one remaining great object of Antarctic journeying — the crossing of the continent from sea to sea, via the pole. To this end he made preparations for what became known as the 1914 Imperial Trans-Antarctic Expedition.
Two ships would be employed: Endurance would carry the main party into the Weddell Sea, aiming for Vahsel Bay from where a team of six, led by Shackleton, would begin the crossing of the continent. Meanwhile a second ship, the Aurora, would take a supporting party to McMurdo Sound on the opposite side of the continent. This party would then lay supply depots across the Great Ice Barrier as far as the Beardmore Glacier, these depots holding the food and fuel that would enable Shackleton's party to complete their journey of 1,800 miles (2,900 km) across the continent.
Despite the outbreak of the First World War on August 3rd, 1914, Endurance was directed by the First Lord of the Admiralty, Winston Churchill, to "proceed", and left British waters on August 8th, 1914. After final preparations, Endurance then departed from South Georgia for the Weddell Sea on December 5th, heading for Vahsel Bay.
As the ship moved southward, early ice was encountered, which slowed progress. On January 15th, 1915, there were within 200 miles of Vahsel Bay. Unfortunately, a northerly gale blew up and before they could do anything to save themselves, Endurance became frozen fast in an ice floe. What happened was simple enough. The northerly gale compressed and crowded the whole Weddell Sea pack against the face of the land, and no force on earth could open up the ice again – except another gale from the opposite direction.
On February 24th, realizing that they would be trapped until the following spring, Shackleton ordered the abandonment of ship's routine and her conversion to a winter station. The sled dogs were moved off the boat. Seals were killed for blubber (fuel) and meat. Eventually 5,000 pounds was accumulated (storage was not a problem in the sub-zero temperatures) so that they would not have to dip into the tinned food items.
In early May, 1915, the sun appeared over the horizon for the last time, then slowly dropped from sight and the Antarctic night (with an average temperature of -17) began. In all the world, there is no desolation more complete than the polar night. It is a return to the Ice Age – no warmth, no life, no movement. On July 17th, just as the men’s thoughts began to turn to Spring (and the opportunity to make a new assault on Vahsel Bay), the sounds of ice flows grinding together (pressure) began.
On August 1st, the ship briefly broke free from the ice, rose, and resettled at a 5 degree angle. Three more times the ship was attacked by the ice and withstood the pressure. But on October 24th, the worst fear of the men began to come true. Two ice flows pinned the boat and slowly began crushing the hull. Shackleton had no choice – on October 27th, Shackleton gave the order to abandon ship.
The order to abandon ship, while it signaled the beginning of the greatest of all Antarctic adventures, also sealed the fate of the one of the most ambitious of all Antarctic expeditions. Evidence of the scope of such an undertaking is the fact that after Shackleton’s failure, the crossing of the continent remained untried for 43 years. Even that expedition which was equipped with heated, tracked vehicles, powerful radios, and guided by reconnaissance planes and dog teams, was strongly urged to give up. It was only after a tortuous four month effort that it was accomplished.
Few men have borne the responsibility Shackleton did at that moment. They were for all practical purposes alone in the frozen Antarctic seas. It had been very nearly a year since they had last been in contact with civilization. Nobody in the outside world knew they were in trouble, much less where they were. They had no radio transmitter with which to notify any would-be rescuers, and it is doubtful that any rescuers could have reached them even if they had been able to broadcast an SOS. Their plight was naked and terrifying in its simplicity. If they were to get out – they had to get themselves out.
The crew went from the comfort of a ship to living in crammed tents, lying in reindeer sleeping bags, on bare ice. They were castaways in one of the most savage regions of the world, drifting they knew not where , without a hope of rescue, subsisting only so long as Providence sent them food to eat.
Though their floe remained undamaged throughout the summer, Shackleton did not want a false sense of security to develop among the men. On November 15th he put in place an emergency plan with specific duties for each man (that they regularly practiced) if they had to suddenly strike camp. By April 7th their floe measured only 200 yards across. It was surrounded on all sides by open water. Finally, on April 9th, their ice floe broke into two, and Shackleton ordered the crew into the lifeboats, to head for the nearest land.
After five harrowing days at sea -- enduring gale force winds, 30’ rollers, and dodging ice bergs intent on steamrolling them -- the exhausted men landed their three lifeboats at Elephant Island. This was the first time they had stood on solid ground for 497 days. To be continued…..
She was being crushed. Not all at once, but slowly, a little at a time. The pressure of ten million tons of ice was driving in against her sides. And dying as she was, she cried in agony. Her frames and planking, her immense timbers, many of them almost a foot thick, screamed as the killing pressure mounted. And when her timbers could no longer stand the strain, they broke with a report like artillery fire.
By 7 p.m., all essential gear had been transferred to the ice, and a camp of sorts had been established on a solid floe a short distance to starboard. The lifeboats had been lowered the night before. The date was October 27, 1915. The name of the ship was Endurance. The position was in the icy wasteland of the Antarctic’s treacherous Weddell Sea, just about midway between the South Pole and nearest known outpost of humanity, some 1,200 miles away.
Much is said today about the need for:
• IT to have a roadmap,
• IT to obtain critical business buy-in (i.e., to be aligned with the business),
• IT to prepare for the inevitable changes the future will bring (i.e., IT becoming a shared service – Future State CIO), and
• CIO’s to become game-changers (CIO Executive Council)
The bottom line is that IT needs to move the business forward.
But how does IT move the business forward? How does it become transformational? How does it become innovational?
While I do not have all the answers – I myself and S-K are on this same journey – let me state that moving the business forward (at a minimum) requires:
• A firm foundation,
• A proven process, and
• A culture of innovation.
Or stated differently, IT needs to be:
• Foundational,
• Transformational, and
• Innovational.
I plan on using the story of Shakleton’s Incredible Journey (as told by Alfred Lansing) as a framework for our discussion on moving the business forward.
Sir Ernest Shackleton was an English explorer and one of the principal figures of the period known as the Heroic Age of Antarctic Exploration. After the race to the South Pole ended in 1912 with Roald Amundsen's conquest, Shackleton turned his attention to what he said was the one remaining great object of Antarctic journeying — the crossing of the continent from sea to sea, via the pole. To this end he made preparations for what became known as the 1914 Imperial Trans-Antarctic Expedition.
Two ships would be employed: Endurance would carry the main party into the Weddell Sea, aiming for Vahsel Bay from where a team of six, led by Shackleton, would begin the crossing of the continent. Meanwhile a second ship, the Aurora, would take a supporting party to McMurdo Sound on the opposite side of the continent. This party would then lay supply depots across the Great Ice Barrier as far as the Beardmore Glacier, these depots holding the food and fuel that would enable Shackleton's party to complete their journey of 1,800 miles (2,900 km) across the continent.
Despite the outbreak of the First World War on August 3rd, 1914, Endurance was directed by the First Lord of the Admiralty, Winston Churchill, to "proceed", and left British waters on August 8th, 1914. After final preparations, Endurance then departed from South Georgia for the Weddell Sea on December 5th, heading for Vahsel Bay.
As the ship moved southward, early ice was encountered, which slowed progress. On January 15th, 1915, there were within 200 miles of Vahsel Bay. Unfortunately, a northerly gale blew up and before they could do anything to save themselves, Endurance became frozen fast in an ice floe. What happened was simple enough. The northerly gale compressed and crowded the whole Weddell Sea pack against the face of the land, and no force on earth could open up the ice again – except another gale from the opposite direction.
On February 24th, realizing that they would be trapped until the following spring, Shackleton ordered the abandonment of ship's routine and her conversion to a winter station. The sled dogs were moved off the boat. Seals were killed for blubber (fuel) and meat. Eventually 5,000 pounds was accumulated (storage was not a problem in the sub-zero temperatures) so that they would not have to dip into the tinned food items.
In early May, 1915, the sun appeared over the horizon for the last time, then slowly dropped from sight and the Antarctic night (with an average temperature of -17) began. In all the world, there is no desolation more complete than the polar night. It is a return to the Ice Age – no warmth, no life, no movement. On July 17th, just as the men’s thoughts began to turn to Spring (and the opportunity to make a new assault on Vahsel Bay), the sounds of ice flows grinding together (pressure) began.
On August 1st, the ship briefly broke free from the ice, rose, and resettled at a 5 degree angle. Three more times the ship was attacked by the ice and withstood the pressure. But on October 24th, the worst fear of the men began to come true. Two ice flows pinned the boat and slowly began crushing the hull. Shackleton had no choice – on October 27th, Shackleton gave the order to abandon ship.
The order to abandon ship, while it signaled the beginning of the greatest of all Antarctic adventures, also sealed the fate of the one of the most ambitious of all Antarctic expeditions. Evidence of the scope of such an undertaking is the fact that after Shackleton’s failure, the crossing of the continent remained untried for 43 years. Even that expedition which was equipped with heated, tracked vehicles, powerful radios, and guided by reconnaissance planes and dog teams, was strongly urged to give up. It was only after a tortuous four month effort that it was accomplished.
Few men have borne the responsibility Shackleton did at that moment. They were for all practical purposes alone in the frozen Antarctic seas. It had been very nearly a year since they had last been in contact with civilization. Nobody in the outside world knew they were in trouble, much less where they were. They had no radio transmitter with which to notify any would-be rescuers, and it is doubtful that any rescuers could have reached them even if they had been able to broadcast an SOS. Their plight was naked and terrifying in its simplicity. If they were to get out – they had to get themselves out.
The crew went from the comfort of a ship to living in crammed tents, lying in reindeer sleeping bags, on bare ice. They were castaways in one of the most savage regions of the world, drifting they knew not where , without a hope of rescue, subsisting only so long as Providence sent them food to eat.
Though their floe remained undamaged throughout the summer, Shackleton did not want a false sense of security to develop among the men. On November 15th he put in place an emergency plan with specific duties for each man (that they regularly practiced) if they had to suddenly strike camp. By April 7th their floe measured only 200 yards across. It was surrounded on all sides by open water. Finally, on April 9th, their ice floe broke into two, and Shackleton ordered the crew into the lifeboats, to head for the nearest land.
After five harrowing days at sea -- enduring gale force winds, 30’ rollers, and dodging ice bergs intent on steamrolling them -- the exhausted men landed their three lifeboats at Elephant Island. This was the first time they had stood on solid ground for 497 days. To be continued…..
Saturday, March 10, 2012
What Keeps Me Up at Night (And What I Can Do About It) Part 5
Issue #6 – Fill in the Blank
Carl Armerding recounted his experience of watching a wildcat in a zoo. "As I stood there," he said, "an attendant entered the cage through a door on the opposite side. He had nothing in his hands but a broom. Carefully closing the door, he proceeded to sweep the floor of the cage. I observed that the worker had no weapon to ward off an attack by the beast. In fact, when he got to the corner of the cage where the wildcat was lying, he poked the animal with the broom. The wildcat hissed at him and then lay down in another corner of the enclosure. I remarked to the attendant: ‘You certainly are a brave man.’ ‘No, I ain't brave,’ replied the attendant as he continued to sweep. ‘Well, then, that cat must be tame.’ ‘No,’ came the reply, ‘he ain't tame.’ ‘If you aren't brave and the wildcat isn't tame, then I can't understand why he doesn't attack you.’” Armerding said the man chuckled, then replied with an air of confidence: "Mister, he's old -- and he ain't got no teeth."
The sixth thing that keeps me up at night are those items that irritate, frustrate, and exasperate me at work. What are those things? Fill in the blank! For each of us, the list of things that irritate and frustrate is as unique as a fingerprint. But unlike the story above, more than likely they do have teeth! Let me explain by giving you one example that I have wrestled with on numerous occasions – our Board.
This Board has members that are smarter than anyone else. It speaks with the language of one having a “long-term” view but acts like one having a “short-term” view. It sees IT as being a cost center and capable of cutting expenses indefinitely. It has mandated an outside assessment to evaluate the competency and expected opportunities for additional waste reduction three years in a row! The fact that IT spend as a percentage of revenue has dropped from 2.9% in 2009 to 1.9% in 2011 (actual IT spend dropped $4 million) is not good enough. The fact that IT headcount has dropped drop by 10% in the same period of time is seen as merely a down payment in cost reduction. This Board even reviewed annual bonuses – employee by employee – a year ago.
Because of this rather non-supportive Board, I have had many sleepless nights. On several occasions it was due to having another outside consulting firm (a set of IT experts who are supposed to know more about IT than S-K’s IT management team) assessing our organization, strategy, and spend. On other occasions it was the frustration of building a budget that drove down costs and increased productivity only to be told: “It is not enough!” On one occasion it was a wrestling match to justify technology that had been in place for several years (and was benefitting the company) that they no longer liked. It would be bad enough if each “event” only caused one night of lost sleep. The truth is – each event usually resulted in days, if not weeks of lost sleep.
Do not take away from this posting that I am “trashing” the Board. For purposes of this posting, I wanted to openly and honestly share with you an example of an irritant that keeps me up at night. If I did not provide you with some of the details (there are many more that I have withheld), the sense of frustration that I face would make no sense. And truth be known – each of us has at least one “dragon” like this that they need to slay.
Since I do not like to be a victim, how did I handle this repetitive struggle? What were the strategies that I invoked to solve this problem? While these strategies will not work for each of you and for each of your irritants, maybe they will be of value. First, I never linked my self-esteem to what the Board thought. S-K’s IT management team of five had an accumulative 125+ years of IT management experience. We have had a long history of delivering success. We could even mentor most of the consultants who “assessed” us. If the Board was uncertain of how I was managing IT, I did not allow their skepticism to destroy my self-esteem. Not wanting to be arrogant or blind, I sought and found validation for our efforts from peers, outside consultants, and vendors that we worked with.
Second, I focused on doing what is right and allowing the chips to fall where they may. We are hired to do a job, to be a good steward, to transform department and companies. It is important that we not allow skepticism or ignorance to de-rail what needs to be done. CIO’s are hired to be confident and decisive. We need to take a position and boldly execute a strategy. If we are convinced that it is the correct strategy, then we need to execute that strategy and reap the results and consequences. We need to allow the outcome – not the perception of a Board – to be the basis for our appraisal.
Third, I worked to build deep and broad partnerships with other members of the Executive Team. Benjamin Franklin said it best: “We must all hang together, or assuredly we shall all hang separately.” There is strength in numbers. There is wisdom that may be gained from others. There is support in a group. We must choose to link our success and career to that of the company team. Otherwise, it is easy to become the proverbial “sacrificial lamb.”
Fourth, I performed and marketed those achievements. While this may sound arrogant, it is a fact of life. CIO’s should be measured on how they increase revenues, decrease expenses, increase efficiencies, and decrease risks. Since most of our successes are beyond the understanding of non-IT employees (and Board members), it is imperative that we educate and market those successes continually.
A logical question must be asked – “Did these strategies actually work?” Yes and no. Yes, in the sense that all three assessments confirmed what we knew – S-K IT was doing a very good job. No, in the sense that in the end -- they don’t really care. Their perception of the world remains unchanged and IT continues to focus on delivering value and aiding the business in growing revenues and profits.
In closing, I want to encourage you. First, you will face irritants and frustrations as an IT leader. Those irritants may be common to others or unique to your situation. You are not alone. All of us will have our set of challenges at one time or the other. As such, reach out to others and share your compassion as they do the same with you. Second, don’t play the “victim.” Do not sit back and lose sleep, night after night. Be proactive. Be decisive. Undertake tactics and strategies to diminish or eliminate those irritants. It will enable you to sleep better at night – even if the problem never goes away!
Carl Armerding recounted his experience of watching a wildcat in a zoo. "As I stood there," he said, "an attendant entered the cage through a door on the opposite side. He had nothing in his hands but a broom. Carefully closing the door, he proceeded to sweep the floor of the cage. I observed that the worker had no weapon to ward off an attack by the beast. In fact, when he got to the corner of the cage where the wildcat was lying, he poked the animal with the broom. The wildcat hissed at him and then lay down in another corner of the enclosure. I remarked to the attendant: ‘You certainly are a brave man.’ ‘No, I ain't brave,’ replied the attendant as he continued to sweep. ‘Well, then, that cat must be tame.’ ‘No,’ came the reply, ‘he ain't tame.’ ‘If you aren't brave and the wildcat isn't tame, then I can't understand why he doesn't attack you.’” Armerding said the man chuckled, then replied with an air of confidence: "Mister, he's old -- and he ain't got no teeth."
The sixth thing that keeps me up at night are those items that irritate, frustrate, and exasperate me at work. What are those things? Fill in the blank! For each of us, the list of things that irritate and frustrate is as unique as a fingerprint. But unlike the story above, more than likely they do have teeth! Let me explain by giving you one example that I have wrestled with on numerous occasions – our Board.
This Board has members that are smarter than anyone else. It speaks with the language of one having a “long-term” view but acts like one having a “short-term” view. It sees IT as being a cost center and capable of cutting expenses indefinitely. It has mandated an outside assessment to evaluate the competency and expected opportunities for additional waste reduction three years in a row! The fact that IT spend as a percentage of revenue has dropped from 2.9% in 2009 to 1.9% in 2011 (actual IT spend dropped $4 million) is not good enough. The fact that IT headcount has dropped drop by 10% in the same period of time is seen as merely a down payment in cost reduction. This Board even reviewed annual bonuses – employee by employee – a year ago.
Because of this rather non-supportive Board, I have had many sleepless nights. On several occasions it was due to having another outside consulting firm (a set of IT experts who are supposed to know more about IT than S-K’s IT management team) assessing our organization, strategy, and spend. On other occasions it was the frustration of building a budget that drove down costs and increased productivity only to be told: “It is not enough!” On one occasion it was a wrestling match to justify technology that had been in place for several years (and was benefitting the company) that they no longer liked. It would be bad enough if each “event” only caused one night of lost sleep. The truth is – each event usually resulted in days, if not weeks of lost sleep.
Do not take away from this posting that I am “trashing” the Board. For purposes of this posting, I wanted to openly and honestly share with you an example of an irritant that keeps me up at night. If I did not provide you with some of the details (there are many more that I have withheld), the sense of frustration that I face would make no sense. And truth be known – each of us has at least one “dragon” like this that they need to slay.
Since I do not like to be a victim, how did I handle this repetitive struggle? What were the strategies that I invoked to solve this problem? While these strategies will not work for each of you and for each of your irritants, maybe they will be of value. First, I never linked my self-esteem to what the Board thought. S-K’s IT management team of five had an accumulative 125+ years of IT management experience. We have had a long history of delivering success. We could even mentor most of the consultants who “assessed” us. If the Board was uncertain of how I was managing IT, I did not allow their skepticism to destroy my self-esteem. Not wanting to be arrogant or blind, I sought and found validation for our efforts from peers, outside consultants, and vendors that we worked with.
Second, I focused on doing what is right and allowing the chips to fall where they may. We are hired to do a job, to be a good steward, to transform department and companies. It is important that we not allow skepticism or ignorance to de-rail what needs to be done. CIO’s are hired to be confident and decisive. We need to take a position and boldly execute a strategy. If we are convinced that it is the correct strategy, then we need to execute that strategy and reap the results and consequences. We need to allow the outcome – not the perception of a Board – to be the basis for our appraisal.
Third, I worked to build deep and broad partnerships with other members of the Executive Team. Benjamin Franklin said it best: “We must all hang together, or assuredly we shall all hang separately.” There is strength in numbers. There is wisdom that may be gained from others. There is support in a group. We must choose to link our success and career to that of the company team. Otherwise, it is easy to become the proverbial “sacrificial lamb.”
Fourth, I performed and marketed those achievements. While this may sound arrogant, it is a fact of life. CIO’s should be measured on how they increase revenues, decrease expenses, increase efficiencies, and decrease risks. Since most of our successes are beyond the understanding of non-IT employees (and Board members), it is imperative that we educate and market those successes continually.
A logical question must be asked – “Did these strategies actually work?” Yes and no. Yes, in the sense that all three assessments confirmed what we knew – S-K IT was doing a very good job. No, in the sense that in the end -- they don’t really care. Their perception of the world remains unchanged and IT continues to focus on delivering value and aiding the business in growing revenues and profits.
In closing, I want to encourage you. First, you will face irritants and frustrations as an IT leader. Those irritants may be common to others or unique to your situation. You are not alone. All of us will have our set of challenges at one time or the other. As such, reach out to others and share your compassion as they do the same with you. Second, don’t play the “victim.” Do not sit back and lose sleep, night after night. Be proactive. Be decisive. Undertake tactics and strategies to diminish or eliminate those irritants. It will enable you to sleep better at night – even if the problem never goes away!
Saturday, February 11, 2012
What Keeps Me Up at Night (And What I Can Do About It) Part 4
"Governance? Resource contention? Process ownership? Prioritization? Resource management?" Those are the actual words I used in a recent presentation given to S-K’s Senior Leadership Team. I was educating them as part of a proposal for a new model of IT governance. I was also introducing them to an approach that had the potential to become just another failed attempt at getting our hands around how to manage scarce IT resources (the fifth thing that keeps me awake at night). Yet, I knew that for S-K to move forward – to enable our desired corporate transformation and to sustain effective on-going operations – a new model of IT governance was needed.
But let me step back and allow you to understand the genesis behind this new proposal related to IT governance. Like every other CIO, demand for IT capacity far exceeds the ability of IT to deliver at S-K. Everyone who makes a request of IT considers theirs to be a priority and wants it done as soon as possible. There is considerable frustration from these requesters when their work is not getting addressed or has been put on-hold to address other priorities. There is also considerable frustration within the IT Department. We do not want to have to wear the “black hat” and always be the one saying “no,” “not now,” or “later.” We do not want to have to “tamp down” on our own staff who try to squeeze in a small or quick fix to be more customer-service friendly. We do not want to wrestle with low morale resulting from the stress of demand exceeding supply.
If we want to transform S-K and fix this all-too-common problem, a new approach was needed. In simple terms, we needed an approach that ensures that IT capacity is working on the right things at the right time to enable business goals. We needed a set of controls that focuses on organizational success while managing associated risks. Sounds simple, right? Unfortunately, the devil is in the details!
Why is IT governance so difficult to implement? Business leaders want to do the right thing. They want the business to succeed and they will work hard to make that happen. But all too often, they are motivated and rewarded by having their small part of the organization succeed. IT governance requires that the scarce resource of technology capacity be diligently distributed across the organization for overall business success. In other words, it requires that IT cannot be allocated on the basis of individual team needs but rather on collective, organizational goals.
How does IT governance work at S-K? All technology investment requests are brought to a single committee (at S-K we are calling this the Process Owner Committee) and the merit of every request is debated and a decision is arrived upon. Membership of the board is made up of the process owners in the company (order to cash, customer acquisition, etc.) that have been selected by the Senior Leadership Team at S-K.
What are the “core” values that will ensure IT governance works at S-K? The core values required are the willingness to wear a “corporate hat” and the ability to compromise. If participants are focused on the success of the entire business, compromise becomes easier. This new committee will need to learn that there is a better way to manage your scarce IT resources.
Is IT governance optional? No! There are many ways to implement IT governance, but the principles remain the same. While we can debate the method of implementation, some form of IT governance must be part of your organizational processes. Bureaucratic? Sure. Essential? Definitely.
How is the new approach working at S-K? We have formed the committee. We have a clear roadmap of IT projects that have been agreed and approved to move forward on. We have a clear list of projects that are in the queue. We are educating the members on the criticality of getting all project owners to clearly define the ROI of their projects. We are all holding hands and wearing a “corporate” hat. But the bottom line is – it is too early to tell! We are merely starting on a journey.
While we don’t have all the answers (and I do not want to bore you with the details), what are some of the elements of a world class governance model that we are attempting to incorporate into our approach here at S-K:
1. Corporate Perspective
Projects are prioritized from a corporate perspective. Members are asked to make the best business decision for the company, not for their constituency.
2. Working Committee
This is not an informational meeting. It is a working meeting.
3. Forward Looking Committee
It is a forward-looking committee. Projects already “in flight” are only discussed if there are issues to resolve or risks to mitigate.
4. Single Governance Model
While there are three governance committees (we have individual committees that prioritize break-fixes and small enhancements for each functional area, we have the Process Owner Committee that prioritizes projects and major initiatives over a man-month, and we have an IT Executive Steering Committee that resolves conflicts and resource/funding issues arising from the Process Owner Committee), we have a single governance model. All requests (changes, enhancement, and projects) are entered into the same system. All requests over a man-month are reviewed by the Process Owner Committee (something that the IT Executive Steering Committee does not have the patience for). The executives and subordinates understand that the Process Owner Committee has to sign off on all requests (either by assigning IT resources to work on break-fix/enhancement requests or by assigning IT resources to projects).
5. Senior Management Support/Involvement
Senior management remains involved in the process. They select the members of the committee, they empower the committee members to be ambassadors for the corporation, they review committee decisions on a monthly basis, and they resolve any and all conflicts (resource and funding-related). Communicating and supporting IT governance is the single most important IT role of senior leaders.
6. Exception Handling Process
Inevitably, exceptions challenge the status quo, particularly the IT architecture and infrastructure. Some requests for exceptions are frivolous but most come from a true desire to meet business needs. If the exception proposed by a business unit has value, the Process Owner Committee will work with IT (and possibly the IT Executive Steering Committee) to make a change to the IT architecture that can benefit the entire enterprise. Formally approved exceptions offer a second benefit in that they formalize organizational learning about technology and architecture.
7. Incentive & Compensation
A common problem encountered with IT governance is a misalignment of incentive and reward systems with the behaviors and priorities the IT governance approach is designed to encourage. We are working with senior management to ensure that executive sponsors of projects have the successful completion of that project as one of their accountabilities/objectives for the year. We are also discussing how we might add IT-related objectives (e.g., meeting the IT budget) to the accountabilities/objectives for the Process Owner Committee members in future years. It is hard to overestimate the importance of aligning incentive and reward systems to governance arrangements.
8. Technology Expertise
IT assets are more and more important to the performance of most enterprises. A reliable, cost-effective, regulation-compliant, secure, and strategic IT portfolio is more critical today than ever before. The persons added to the committee must understand what the technology is and is not capable of. It is not the technical details that are critical but a feel for the two-way symbiotic connection between technology and business.
9. Transparency and Education
It's virtually impossible to have too much transparency or education about IT governance. Transparency and education often go together—the more education, the more transparency, and vice versa. The more transparency of the governance processes, the more confidence in the governance. In the future, S-K will be utilizing portals or intranets to communicate IT governance. The less transparent the governance processes are, the less people follow them. The more special deals are made, the less confidence there is in the process and the more workarounds are used. The less confidence there is in the governance, the less willingness there is to play by rules designed to lead to increased firm-wide performance. Special deals and non-transparent governance set off a downward spiral in governance effectiveness.
10. Outlaws Outlawed
We are experimenting with having the IT Executive Steering Committee (the Senior Leadership Team largely makes up this committee) acting as the “Sheriff.” There are many things that will undermine the success of this new IT governance approach but allowing “outlaws” to freely roam guarantees failure. What do I mean? It is imperative that senior management squelch rogue IT projects, disallow the building of shadow IT organizations, disallow funding of unapproved projects, and discourage quick-fix, throw-away solutions.
But let me step back and allow you to understand the genesis behind this new proposal related to IT governance. Like every other CIO, demand for IT capacity far exceeds the ability of IT to deliver at S-K. Everyone who makes a request of IT considers theirs to be a priority and wants it done as soon as possible. There is considerable frustration from these requesters when their work is not getting addressed or has been put on-hold to address other priorities. There is also considerable frustration within the IT Department. We do not want to have to wear the “black hat” and always be the one saying “no,” “not now,” or “later.” We do not want to have to “tamp down” on our own staff who try to squeeze in a small or quick fix to be more customer-service friendly. We do not want to wrestle with low morale resulting from the stress of demand exceeding supply.
If we want to transform S-K and fix this all-too-common problem, a new approach was needed. In simple terms, we needed an approach that ensures that IT capacity is working on the right things at the right time to enable business goals. We needed a set of controls that focuses on organizational success while managing associated risks. Sounds simple, right? Unfortunately, the devil is in the details!
Why is IT governance so difficult to implement? Business leaders want to do the right thing. They want the business to succeed and they will work hard to make that happen. But all too often, they are motivated and rewarded by having their small part of the organization succeed. IT governance requires that the scarce resource of technology capacity be diligently distributed across the organization for overall business success. In other words, it requires that IT cannot be allocated on the basis of individual team needs but rather on collective, organizational goals.
How does IT governance work at S-K? All technology investment requests are brought to a single committee (at S-K we are calling this the Process Owner Committee) and the merit of every request is debated and a decision is arrived upon. Membership of the board is made up of the process owners in the company (order to cash, customer acquisition, etc.) that have been selected by the Senior Leadership Team at S-K.
What are the “core” values that will ensure IT governance works at S-K? The core values required are the willingness to wear a “corporate hat” and the ability to compromise. If participants are focused on the success of the entire business, compromise becomes easier. This new committee will need to learn that there is a better way to manage your scarce IT resources.
Is IT governance optional? No! There are many ways to implement IT governance, but the principles remain the same. While we can debate the method of implementation, some form of IT governance must be part of your organizational processes. Bureaucratic? Sure. Essential? Definitely.
How is the new approach working at S-K? We have formed the committee. We have a clear roadmap of IT projects that have been agreed and approved to move forward on. We have a clear list of projects that are in the queue. We are educating the members on the criticality of getting all project owners to clearly define the ROI of their projects. We are all holding hands and wearing a “corporate” hat. But the bottom line is – it is too early to tell! We are merely starting on a journey.
While we don’t have all the answers (and I do not want to bore you with the details), what are some of the elements of a world class governance model that we are attempting to incorporate into our approach here at S-K:
1. Corporate Perspective
Projects are prioritized from a corporate perspective. Members are asked to make the best business decision for the company, not for their constituency.
2. Working Committee
This is not an informational meeting. It is a working meeting.
3. Forward Looking Committee
It is a forward-looking committee. Projects already “in flight” are only discussed if there are issues to resolve or risks to mitigate.
4. Single Governance Model
While there are three governance committees (we have individual committees that prioritize break-fixes and small enhancements for each functional area, we have the Process Owner Committee that prioritizes projects and major initiatives over a man-month, and we have an IT Executive Steering Committee that resolves conflicts and resource/funding issues arising from the Process Owner Committee), we have a single governance model. All requests (changes, enhancement, and projects) are entered into the same system. All requests over a man-month are reviewed by the Process Owner Committee (something that the IT Executive Steering Committee does not have the patience for). The executives and subordinates understand that the Process Owner Committee has to sign off on all requests (either by assigning IT resources to work on break-fix/enhancement requests or by assigning IT resources to projects).
5. Senior Management Support/Involvement
Senior management remains involved in the process. They select the members of the committee, they empower the committee members to be ambassadors for the corporation, they review committee decisions on a monthly basis, and they resolve any and all conflicts (resource and funding-related). Communicating and supporting IT governance is the single most important IT role of senior leaders.
6. Exception Handling Process
Inevitably, exceptions challenge the status quo, particularly the IT architecture and infrastructure. Some requests for exceptions are frivolous but most come from a true desire to meet business needs. If the exception proposed by a business unit has value, the Process Owner Committee will work with IT (and possibly the IT Executive Steering Committee) to make a change to the IT architecture that can benefit the entire enterprise. Formally approved exceptions offer a second benefit in that they formalize organizational learning about technology and architecture.
7. Incentive & Compensation
A common problem encountered with IT governance is a misalignment of incentive and reward systems with the behaviors and priorities the IT governance approach is designed to encourage. We are working with senior management to ensure that executive sponsors of projects have the successful completion of that project as one of their accountabilities/objectives for the year. We are also discussing how we might add IT-related objectives (e.g., meeting the IT budget) to the accountabilities/objectives for the Process Owner Committee members in future years. It is hard to overestimate the importance of aligning incentive and reward systems to governance arrangements.
8. Technology Expertise
IT assets are more and more important to the performance of most enterprises. A reliable, cost-effective, regulation-compliant, secure, and strategic IT portfolio is more critical today than ever before. The persons added to the committee must understand what the technology is and is not capable of. It is not the technical details that are critical but a feel for the two-way symbiotic connection between technology and business.
9. Transparency and Education
It's virtually impossible to have too much transparency or education about IT governance. Transparency and education often go together—the more education, the more transparency, and vice versa. The more transparency of the governance processes, the more confidence in the governance. In the future, S-K will be utilizing portals or intranets to communicate IT governance. The less transparent the governance processes are, the less people follow them. The more special deals are made, the less confidence there is in the process and the more workarounds are used. The less confidence there is in the governance, the less willingness there is to play by rules designed to lead to increased firm-wide performance. Special deals and non-transparent governance set off a downward spiral in governance effectiveness.
10. Outlaws Outlawed
We are experimenting with having the IT Executive Steering Committee (the Senior Leadership Team largely makes up this committee) acting as the “Sheriff.” There are many things that will undermine the success of this new IT governance approach but allowing “outlaws” to freely roam guarantees failure. What do I mean? It is imperative that senior management squelch rogue IT projects, disallow the building of shadow IT organizations, disallow funding of unapproved projects, and discourage quick-fix, throw-away solutions.
Subscribe to:
Posts (Atom)