David Taylor's Inside Track: Provocative Insights into the World of IT in Business

David Taylor

• Publisher: Routledge
• Year: 2012
• Print ISBN:
  9781138435063
• eBook ISBN:
  9781136006814
• Topic: Business
• Subtopic: Business General
• Index: Business

Never before has IT played such a significant role in transforming organisations, of all sizes. And yet it continues to be dominated by technical jargon, acronyms and irrelevant detail. This book cuts through all of the confusion, and presents a clear, direct, solution based focus on the key IT/business issues facing every company and business leader today. This book contains the complete, first fifteen months of David Taylor's highly acclaimed Computer Weekly column - Inside Track. With a reputation for cutting through the hype, David focuses on the IT/business and personal leadership agenda, covering such issues as: * The key IT issues for the boardroom - in business language * Actions to win in the new world of e-commerce - and get started today * The successful new IT leader - the skills you and your company need to employ * Quick solutions to long-term IT problems - they can be resolved * How to motivate your people, and slash staff turnover - save a fortune on recruitment costs * True IT/business alignment - add real value to your bottom line David Taylor is a leading authority on IT in business. He is President of the association of IT Directors, Certus, a reference partner to the UK Government's National Audit Office, and a registered expert with several global research companies. His overall aim is to enable people and organisations to be all that they can be, through the combination of world class technology, true leadership and the release of human potential. With a prestigious background across companies such as Rolls-Royce, Allianz and Cornhill, David has a driving, positive passion for IT in business, and a reputation for championing IT Directors who want to achieve board level positions in their organisations. David and his team work with FTSE 200 companies on winning in the new internet economy, with entrepreneurs starting new dot com ventures, and with CEOs, advising on the qualities they should seek in their IT leaders. A regular writer, television presenter and speaker, David gives keynote, leadership and IT presentations throughout the world. He lives with his wife, Rosalind and their two children, Anthony and Olivia, in Surrey.

1   Beyond belief

Crossing fingers while shaking hands used to mean the agreement was worthless, for customers and suppliers these days it more probably means wishing for luck. If the growing evidence is to be believed, trust in each other is dissolving, along with the wasted time, energy and cost involved. What has gone wrong?

Although Computer Weekly’s ‘Stiffing’ campaign focuses mostly on suppliers, that is not the whole story. Many customers, desperate to resolve a business need, take products and services without knowing exactly what will be delivered – or whether it will bring any real benefit to their organization.

In reality most problems are caused by genuine misunderstandings, it is not in anyone’s interest for things to go wrong. In my experience the following specific actions not only reduce risk, but also help develop a trusted, strategic partnership.

Customers:

1   Clearly define what role the supplier or product will play and the business benefit to be gained. Identify a quantified benefit before buying.

2   Do not attempt to screw your supplier into the ground during contract/price negotiations – you will pay for it later.

3   Consider appointing a full time supplier ‘manager’ whose role is to ensure relationships with all suppliers are working as agreed.

4   Provide an overall standard to live up to, a code of conduct that suppliers must follow. Never openly criticize any supplier - resolve disputes behind closed doors.

4   Reward supplier delivery by recommending them to other customers, giving them free publicity and involving them in decisions. I know of one company who pays early for excellent work.

Suppliers:

1   Clearly define the benefits of the technology or service – the real customer value. Only accept full payment on delivery of these benefits. That will show you mean business, and believe in your own abilities/product.

2   Be honest when things go wrong. Not only will this win you respect, but every crisis is an opportunity to do that bit extra.

3   Do not make your customers too reliant on your product or services. It may seem attractive to ‘tie them in’ but it usually has the reverse effect of causing resentment. Let your delivery speak for itself.

4   Bring something extra to the table – an idea or innovation for the customer – it may be completely unrelated to the proposed service.

5   Know your prospective customers. Understanding their business will help you win, keep and develop it.

Sadly, trust and handshakes are not enough, and while contracts have their place (locked away out of sight) they are a last resort. When companies have to rely on contract wordings the relationship is, most likely, beyond repair.

Somewhere between the two extremes of litigation and mutual adulation lies the winning balance that not only avoids serious dispute, but also gives the exciting possibilities of ever closer alliance and opportunity for mutual benefit.

At the moment it is out of control. That is costly enough for the companies involved – for our industry reputation, already under enormous threat, it could be disastrous.

2   What happens after what comes next?

In January 2000 many IT departments are in for the shock of their lives. Assuming the world does not come to an end, (think of all that wasted time and money if it does!), and that we make the Y2K/EMU deadlines, what next? Many are predicting the IT bubble will burst – in my view they are wrong.

Once Y2K is ‘fixed’ there will be an enormous demand for all those ‘minor’ projects that have been on hold, there are thousands of working-days effort around the millennium corner. Many business customers can’t wait for IT to, at last, do ‘proper work’ again.

The good news is for contractors and staff. Resource demand will not fall – in fact in many areas it will continue to grow. Remember what we discovered with Y2K – many of the skills we thought we didn’t need any more became important again.

The irony here is that successful post-2000 projects may well provide the real business value that has eluded so many IT projects in the past. At this stage there is little chance of defining exactly what ‘information age’ or ‘digital age’ really mean for your company – but now is the time to start working with the business to schedule as far ahead as possible, while identifying the skills required.

Some may say that post Y2K projects should not be treated as anything special, and simply planned in the normal way – but they are as unique as the millennium bug itself and merit special attention now.

Will business ever trust IT again after the Y2K fiasco? Did we handle what was, in reality, a monster of our own making? The rebuilding of business/IT relationships must start now if we are to regain trust.

Start by allocating a good Project Manager to identify the scope and definition of post-Y2K projects. Their role should be to:

•  Share the situation with business peers and decision-makers.

•  Quantify the skills needed in general terms. Are they available now?

•  Identify key staff and retain them beyond the payment of Y2K bonuses – they will be crucial.

•  Plan training so it is ready to kick-in as soon as required.

•  Ensure that all proposed projects have clear business benefits and the process for these being delivered is in place.

•  Set a date by which all of the projects for 2000 will be finalized – September 1999 latest.

The post-millennium scenario will offer many opportunities to drive overall business strategy, reinforce alignments with internal customers and make long term investments in staff.

It was the organizations who saw the Y2K coming that are in the driving seat now, it will be the companies that look beyond that who will really help take their business forward. We must not do a ‘Y2K’ to our projects. To use the excuse that we didn’t see it coming may well be one excuse too many.

3   Another initiative? Oh joy!

What real financial benefits have been delivered by the ‘initiatives’ so prevalent in business today? From an IT perspective, under ever increasing pressure to justify our spending and very existence, where are the savings, improvements and competitive advantage resulting from the time, energy and money spent?

Take business process reengineering (BPR). Plausible in its aims to improve processes, effectiveness and very way of working, in its implementation many companies forgot about the most important factor – people. That some BPR exercises were simply an excuse for downsizing is a reason many IS departments are now having to rebuild trust.

Continuous improvement (CI) and ‘total quality’ are rallying calls that have fallen into disrepute and become synonymous with bureaucracy and large manuals. They are also examples of squashing general catch-all standards into an IT environment – in a service environment the language of some standards is unfamiliar and people have trouble relating to it and appreciating its value. It can take a year to get something ‘right first time.’ It is better to take action, try things out and get something 80 per cent right. Also, the starting premise that IS departments exist to try to get things wrong is inconceivable.

Properly focused to address key issues and with clear benefits, initiatives have an important role, indeed releasing and applying innovation and creativity will be a major determinant of future success. There are common traits for success:

•  Ideas that come from within can be of far greater value than those imposed from outside. Create a culture where ideas can be freely expressed without blame or ridicule (not easy).

•  Focus on addressing the big issues such as delivery, staff morale and retention, etc. – don’t get bogged down in the drink machine location trivia.

•  Beware company and industry initiatives that try to be all things to all people – it is how it will work in your department that counts.

•  There are ways of reducing numbers or instigating perceived negative change without hiding behind some false premise. People are not stupid.

•  Ensure people are empowered to put ideas into action without having to refer them to numerous committees – set priorities quickly.

•  Reward innovation and ideas through recognition and monetary payments.

•  Emphasize the positive – growth and moving forward – not hunting out mistakes or penny pinching.

•  Invest in training and developing people so they do their jobs better.

•  Company-wide initiatives should be subject to the same cost versus benefit analysis as other projects and not just pushed to the top of the priority list by default.

Next time such an initiative hits your company or department, ensure it is prioritized and treated like all other project requests. Ask the same basic business questions that accompany any strategic request. What are the costs, timescales and benefits? If there are more questions and uncertainty than answers and direction ask the initiative’s sponsor ‘why?’ If the response is ‘why not?’ then start clearing some space on your shelves.

4   Beware of suspect packages

Far from being the panacea that customers hoped and vendors promised, Software packages are often not delivering. As an alternative to developing in-house systems, acquiring a package has always been seen as the simple and inexpensive answer, so why do so many installations go wrong?

Strange as it may seem, customers rarely know what they are buying – failing to look beyond the hype and expectations raised by the supplier. This, coupled with unclear business benefits, leads to inevitable problems.

The amount of work involved in altering the software, or changing business processes to meet the way the package works, is often underestimated. Some of the most spectacular failures have been when tried and tested solutions have been modified. The Stock Exchange’s Taurus system, which lost £250 million, was based on a successful package from the USA.

Packages are by definition all things to all buyers, and as business complexity grows few are meeting all of a customer’s requirements. This leads to modifications that result in a costly and only partially successful application, and companies end up paying more over a longer period of time than if they had developed a solution in house.

This is a complex subject, but the following covers the main questions to ask:

1   What is my business need, to what extent will the package fit? (Below 75 per cent spells danger).

2   What are the exact deliverables, in what time and to what cost? (Ensure these are in the contract – preferably fixed time with penalties and incentives).

3   Will it work? What is its track record and customer base? How have other customers altered it? (Ask other customers that have used the same version as you are buying, and get guarantees on performance from the supplier).

4   How much will it cost? What is the cost base? (Ensure ongoing maintenance and upgrade costs are known in advance, numbers of users are agreed and whether subsidiary companies can use the software).

5   Is it documented? How much education, training and consultancy are included within the basic cost of the software?

6   Who owns the title to the software? Is a parent company or third party involved? (Make sure you have an Escrow agreement in place – such an agreement allows for provision of the source code to be passed to customers in the event of the supplier ceasing to trade).

7   What is the source code written in? Is it in line with my strategy and skills base? (Don’t become too reliant on the supplier for advice or skills).

8   How do we get changes made to the package after it goes live? Is there a user group? (User groups are useful for experience sharing but you may have to convince them that your need is a priority).

All of this said, a package can indeed be the best and most economic solution, providing everyone is clear what it can and cannot do. Know what you are buying and only buy a package if you can install it with the absolute minimum of changes. Don’t let this philosophy be hijacked – tampering with suspect packages can be very dangerous.

5 Our ultimate challenge

If our industry has tears, it should prepare to shed them now. We knew that people retention and skill shortages were a growing problem – few could have predicted the devastating effect it would have on business strategy, the economy and our country.

Computer Weekly’s Banner Research survey has revealed that over one in five organizations has had to change...

Table of contents

• Cover
• Halftitle
• Title
• Copyright
• Contents
• Computer Weekly Professional Series
• Foreword
• Introduction
• Acknowledgements
• 1 Beyond belief Supplier/business partnerships
• 2 What happens after what comes next? The future
• 3 Another initiative? Oh joy! Business focus
• 4 Beware of suspect packages Software strategy
• 5 Our ultimate challenge Skills/people
• 6 This is personal Personal well-being
• 7 Emotions must give way to reason Supplier/business partnerships
• 8 A date too far? Software strategy
• 9 If we are to attract the right people… Image of IT
• 10 Trading places E-commerce
• 11 Shall we dance? Y2K
• 12 Supplier fallout Supplier/business partnerships
• 13 Bad timing? Comment on legislation
• 14 IT Directors planning for recession The future
• 15 We are not alone! Personal networking
• 16 Design your destiny E-commerce
• 17 Euro ready – coming or not Euro
• 18 The IT director as king Role of IT director
• 19 A wolf in sheep’s clothing Supplier/business partnerships
• 20 Promises promises Software strategy
• 21 Raising the standard Total cost of ownership
• 22 Volume over value Total cost of ownership
• 23 Where has all the training gone? Project management
• 24 A full twelve months The future
• 25 The lessons of success Project management
• 26 So much more than money Skills/people
• 27 League table 2000! Y2K
• 28 The elusive balance Skills/people
• 29 Murders and acquisitions Mergers and acquisitions
• 30 Take control of your own destiny Outsourcing
• 31 Post non-recession budget Budget prediction
• 32 Linux leaves school Software strategy
• 33 Future shock The future
• 34 Enough is enough Personal well-being
• 35 Bargain basement Software strategy
• 36 A time to talk Personal networking
• 37 Chaos or freedom? Total cost of ownership
• 38 Twenty-first century people Skills/people
• 39 Twenty-first century partnerships Supplier/business partnerships
• 40 Twenty-first century performance Business focus
• 41 Disaster reality Contingency planning
• 42 Avoiding the fault line Supplier/business partnerships
• 43 E-mail rage Communications
• 44 In need of a rebrand Image of IT
• 45 So what? Project management
• 46 Best sourcing Outsourcing
• 47 Local power Business focus
• 48 The Holy Grail Software strategy
• 49 The hidden costs Total cost of ownership
• 50 The new IT leader – skill-set Role of IT director
• 51 The new IT leader – next generation Role of IT Director
• 52 The new IT leader – pitfalls Role of IT director
• 53 The five flavours of IT director Role of IT director
• 54 Awaken the giants within Skills/people
• 55 A waste of valuable time Business focus
• 56 Board level value Business focus
• 57 The future is on their side Skills/people
• 58 Supplier emotion Suppler/business partnerships
• 59 Compliant or not? Y2K
• 60 E-government E-commerce
• 61 Don’t dispute – learn to dance Supplier/business partnerships
• 62 Sorry has to be the hardest word Image of IT
• 63 Foundations for the future The future
• 64 One voice – one power Business focus
• Appendix
• Index