My name is Michael Kiffmeyer. I have been involved in the information technology community since 1988 and my focus is deeply embedded in the needs of the enterprise. I am an educator, technologist and evangelist for learning, technology and transforming organizations through the use of technology for the purpose of making a difference. I believe that every department in any organization is driven by people, process and technology. It is my mission to demonstrate and teach organizations how to use technology effectively to touch each of these areas while helping organization to gain a competitive advantage within their given market space.
Think Change
Organizations that build strong value-driven cultures frequently achieve high performance. The values that are developed must touch every department in the organization or the overall operation will fall short of its targeted goals.
As an IT consulting firm in Cincinnati, we see many different approaches from many different companies and it is the “out-of-the-box thinkers that seem to continually apply lateral thought process on a continual basis and always stay a few steps ahead of their competition.
One would think that IT departments would observe and learn from this but way too often they do not pay attention to the business drivers of the organization and continue to stay with the same IT infrastructure year in and year out and resist change on any level.
There are those that would argue that “if it isn’t broke don’t fix it” and I agree to a point but I believe that if IT professionals are going to contribute to building a strong value-driven culture that works to achieve the business goals of the organization they are going to have to look at new approaches that may enhance the very work they are held accountable for.
Being responsible for business development for our Cincinnati IT consulting firm, over the past couple of weeks I have approached several clients and potential clients with some new value propositions. Many do not want to talk about them, nor are some even curious on what they are. Everyone has a full plate and little capacity for a new application development services, IT training or IT consulting project.
However, here is a question that I have for these individuals. If it is true that information technology changes every fifteen to eighteen months, how can the IT systems and enterprise IT applications that you have had in place for the last three to five years continue to be relevant or simply as efficient as they could be? Do you not owe it to yourself to at least listen to what an IT consulting firm here in Cincinnati has to offer? Perhaps that IT consultant has significant experience with a solution that can make a difference but you are unaware of it because you are resistant to change and everything is running 'smoothly'. I can understand your hesitation but what if the new solution could greatly improve your IT infrastructure, decrease costs, fuel improved productivity or more effectively balance your IT staffing needs? Wouldn’t it behoove you to at least listen?
The IT Value Proposition Amid Turmoil
In weak economic conditions, your company’s decision makers need the ability to understand how the company is performing against its targets. They simply do not have the time to sift through stacks of reports to find out what’s right – or wrong. By linking applications, processes and information technology support together any organization will be able to measure exactly how they are performing against their targets.
The management team of any organization uses dashboards, gauges, charts and other graphical elements to translate complex information into a dynamic view of business conditions. Is it possible to take this same approach when it comes to mapping IT’s relevance to the business targets of the organization? The short answer is absolutely, but one must start with a plan and that plan should begin with an IT Wellness Check™.
In the IT consulting industry we find too many organizations that try to piecemeal their information technology systems together. The problem with this is the mere fact that everyone everywhere is dependent on technology, and in this environment, every CIO and IT manager must know that their IT departments are in line with the business goals of the organization. In these times of economic downturn downturn IT departments are one of the first departments to be cut. In many cases, this results in the slowdown of production and contributes to missing the business targets of the organization.
An IT Wellness Check™ protects against economic challenges by shoring up internal operations to ensure the entire organization is running at peak efficiency. IT is a vital part of any organization's internal operations, and a proper IT strategy is critical for IT departments to gain insight and to connect operational details to business drivers. The IT Wellness Check™ is your business plan to make sure there are no inefficiencies, that you are operationally sound and that there is less chance that your budgets and your department will get cut. That application development services project that you are trying to get approved will have a better chance of acceptance if you can show exactly how it relates to the business goals of the organization.
Remember, non-technical people often do not realize the consequences of the actions they take when they cut budgets and staff. It is our job as responsible information technology professionals to make sure we are always operating at peak efficiency and paint the picture for upper management that shows why specific people, applications or IT infrastructure are necessary to assist them in meeting the business targets of the organization.
IT Consulting Today
Just about every aspect of the world today is in transition and the IT services industry is no exception to this statement. Professional IT services personnel must come to terms with the fact that the skills that they have developed in the past are valuable but they are not enough to sustain long-term growth in the IT field of today.
Technology touches every aspect of our lives and large enterprise organizations are dependent on technology to even operate. The face of information technology consulting services has changed as well because being technical is not enough to meet the required skill sets of organizations.
Gartner has reported that the IT skills from yesterday are not enough to sustain an IT professional today. The needs of business have changed and the IT professional of today needs to understand business and the business goals of their organization. Everything and everyone needs to not only understand the big picture, they need to know how to flourish in it.
Gone are the days where IT departments were an island unto themselves. The enterprise of today is an integrated machine that touches every part of the organization. If an IT manager proposes a certain type of technology they must also be able to come up with the business case for their proposal. Organizations need to understand and justify IT projects and not do them simply because the IT department suggests them.
This approach to business justification and accountability has also crossed over into the information technology staffing industry as well. It is a fact that organizations will continue to need outside technical help but this technical help will have to be business savvy as well - there are no more shortcuts. Just being technical is not enough anymore; an IT staffing person must appreciate the fact that they are placed in a position to do a job, but they must also understand the pressure that organization is dealing with when it comes to ensuring that information technology meets the needs of the company. Firms are seeking staffers that can operate and function on both sides of the line, business and technology.
If one commits to this exciting world of information technology consulting services they must also commit to a pledge of life-long learning. To not do so will not meet the needs of today’s business world and will place that person on the outside looking in and wondering why they did not get the position they sought.
Communication is the Key
One of my favorite movies of all time is Cool Hand Luke starring Paul
Newman. That movie has a famous line issued by the prison captain. After trying several times to get Newman to conform to the prison life style that captain turns to his surrounding audience and utters the words to his surrounding audience; “What we have here is a failure to communicate.”
I have used these words with my own children many times but I wish I could use those words with clients when within the business technology consulting space. Far too many times projects do not go as planned and it usually is because of a lack of communication. That is why in any IT application development project it is imperative that each business unit that has a vested interest in a given project makes it clear exactly what they expect and what is needed.
Experience has taught me that merely stating what you need and what is expected is not enough, especially in the area of enterprise application development. Each party or business unit needs an internal champion for its cause. As any given project progress each business unit needs to make sure there is are checks and balances against their wants and needs list to determine how many of their stated needs are being met. If they are not being met the project needs to stop temporarily until everyone that is involved with the project understand that needs and expectations are not being met and the team collectively need to make a decision on how and when to move forward.
They IT projects fail because there is a lack of planning, a lack of level-setting expectations and an overall lack of communication. Must organizations understand this but more times than not they do not learn from past experience and move forward without consensus. They are well into the user acceptance stage with the built in functionality asked for but for some reason the final approver says this is not what I asked for.
So what goes wrong with the 80% project failures, and what can we learn from this? Several things occur on many levels!
Let me list some of the reasons for project failure and actions that need to be taken
.
- Consensus was not attained – it is apparent in most failed IT project that the approver and the business unit leaders have different, and at time conflicting, goals for the project. Make sure there is “buy-in” along the path of development by everyone involved.
- Expectations are not managed – the approver wants one thing and the developers built something else base on the feedback of various business units. Make sure you manage everyone’s expectations throughout the lifetime of the project
- Usually the final decision maker is excluded in most of the development meetings. This is a very bad practice. This responsible executive must be in on all major decision so there is no pushback at the end.
The lessons here are clear. Identify the stake holders, come up with a communications plan, implement the plan and make sure there is communication and cooperation from each vested participant to ensure that your project does not fail.
What Can IT Staffing do for Me?
If you're looking for a way to save some money in the tough economy, you may want to look for some help from an IT staffing firm. Beyond typical staffing assistance, most IT staffing companies also employ IT consultants and software designers who can all combine to save you money, increase productivity, and increase your efficiency.
Believe it or not companies like mine, Star Base Inc., can do all of this. Over and beyond placing candidates for your projects, Star Base can help improve productivity by ensuring that your company is using the right software for the right application. If application development is not your organizations area of expertise IT staffing firms can recommend new software or write custom software that can meet your organizational needs.
Information technology staffing firms can help increase your efficiency. My organization has developed subject expertise over the past twenty years. We know all of the tricks and shortcuts that many people do not know. Not only can we develop business applications and process improvement we can train users how to do tasks faster and can help identify jobs at your organization that can be handled by a computer but are not. This usually saves companies time and investment
Finally, IT staffing companies can help reduce costs. Yes there will be an initial investment, which is a very tough decision these days. However, in the long run they will find ways to save money and more than make up for their initial costs. If the IT professionals can find ways to have software perform jobs currently being performed by company staff, they will free that staff up for you to use on company core competencies that can produce more goods and services while reducing payroll
When excess waste is minimized increased productivity follows. So you see, IT staffing companies offer much more than simply placing IT personnel. They have the expertise to help cut back on wasteful activities and help you focus on activities that are efficient and designed to maximize your margins. In a highly competitive marketplace, where all of us are stretched to do more with less, this is a competitive advantage that is worth having.
Make Sure You Remain Relevant
Wednesday I wrote a blog on the new role of IT Today. Ironically I was reading a blog on CIO magazine today and read an article by Thomas Wailgum on Why_the_recession_is_marginalizing_CIOs. Thomas took a different path than I chose in my blog but the message remain the same, CIOs and IT personnel must continue to make themselves relevant or they will risk becoming a victim of knee jerk reaction from organizations looking to down size in this downturn economy.
I have written before that any one in the information technology world must come to gripes with the fact that upper manage and business as a whole does not understand the technical world not do they try to. For so long information and IT related work tasks were simply thrown over the wall and it has up to the IT director to make some sense of it and to make sure that everyone was taken care of throughout the enterprise.
Well, the new edict if focused on strategic alignment of the enterprise and business processes and methodologies and how they relate to the over all mission of the organization.
Business application development must focus on the business and not the technology. IT directors and application development specialist must understand that they must use technology to assist their organization to reach their goals and objectives in a quick efficient manner. To not do so makes you vulnerable and expendable. Be proactive instead of reactive and you will make yourself more valuable and more relevant to your organization. Everyone is being asked to do more with less and IT departments and the personnel that work within an IT department are no different.
Develop the attitude that you must continually push your capabilities and ability to think outside of the box through the creation of new process and methodologies to enable your organization to gain a competitive advantage.
Remember, think business first, technology second and ways that technology can empower your organization to continually reach their business goals and objective. More important you will continue to be relevant and valuable to your organization and will not have to concern yourself with down sizing and having the rest of the organization minimizing the role of the CIO.
The New Role of IT
Enterprises will soon recognize that IT is an organizational asset, not simply an organizational structure. Senior leadership will embrace that their understanding of IT and the ability to apply this knowledge in imagining future possibilities is essential to extracting greater value from IT-enabled initiatives. In addition, there will be broad-based acceptance that day-to-day business operations are dependent on IT and that the costs and risks are too high to continue to place the burden of responsibility solely on the CIO and the IT team.
I believe IT will transition from being the sole provider of the asset to enabling the IT capabilities of others in the enterprise. Application development projects will no longer be centrally controlled but will be part of an entire enterprise-wide solution. IT department will become enablers not the central focal point of technology. Information technology consulting services will need to meet the needs of the entire organization not simply the IT department. The dedicated IT staff of the past will need to ensure that information technology is applied in direct support of the business strategy to help the business to compete and grow while outperforming their competition.
IT business solutions will shift from servicing to coaching on the proper solutions based upon the company need. IT departments will grow into corporate leaders instead of trying to be the one stop shop for all technology products and services. Leaders from each department will be accountable for their own needs. They will be accountable for meeting the needs of the business and that includes technology. Once business leaders achieve their goals by increasing their knowledge of systems, business processes, and information and how to identify justify and execute IT-enabled change, organizations will operate as a truly integrated enterprise instead of a company of soloed departments. Once this type of approach is embrace, communication will improve, measurable progress will be seen and a true integrated enterprise will be realized.
This Is Your Opportunity
I read today that unemployment has risen to 7.6%. Yes, its official – we are in a recession. However, that does not mean there isn’t opportunity because there is. If everyone believed everything the press is saying our economy does not have a chance and the United States is going to cease to exist.
I also read today that the U.S. government is going to re-visit its parameters for H-1B Visas because they are being used by recruiting body shops rather than giving foreign nationals the real opportunity that they seek. This means that application developers and specialist are going to be able to make up ground that they have lost to foreign nationals in the past.
My suggestion is for developers to increase their skill-set now before the economy begins to get worse. Information technology consulting has never been a steady business it always has had peaks and valleys. When the economy is good projects are plentiful. When it starts to decline projects usually come to a grinding halt. But is you have multiple skills it decrease your odds of becoming a statistic.
Organizations try to do more and more internally rather than outsource it when the economy begins to falter. The more skills a person has the better chances one has to stay employed. This holds true for IT staffing, development and consulting. Additionally, when a developer or infrastructure architect can show an organization how to safe time, investment and people through the implementation of their solution they will endear themselves to that particular organization.
Good information technology strategy can more than pay for itself in this economy. Organizations everywhere are dependent on technology and they need processes to become dynamically automated so they can accomplish more with less while the move towards models of efficiency that will contribute to the productivity of the organization.
Make it your mission to learn more applications and methodologies that can greatly increase the productivity of any company. To do this is to build value for the organization and you by ensuring there will always be a job for those that are willing to innovate and create a better way.
This is your opportunity. Make it happen!
Cincinnati IT
I have been a part of the Cincinnati Information Technology community for twenty one years now. In that time I have seen many changes, but if there is one constant it is the need to establish and nurture relationships. While this can be a valuable asset it also can be a detriment for information technology departments that are seeking the best IT business solutions for their company.
As a native Cincinnatian who also has also lived and worked an extended amount of time on the West Coast I have had the opportunity to compare and contrast the different business environments. In Cincinnati people really have to know and trust you before they are willing to do business with you. In other parts of the nation the relationship is not quite so intimate.
I believe in the old saying “different strokes for different folks” but sometimes habits and traditions can get in the way of progress. I sell for a living and establishing new business in Cincinnati can have more than its fair set of challenges. People do not like change for the most part they like familiar and comfortable instead. Comfortable can make your IT business vulnerable and if you are a CIO that likes to maintain the “status quo,” you could be missing out on a new technology that can be a difference maker simply because you were unwilling to entertain anything new.
The value of listening to a new consultant is that they can bring valuable insight and insight to a situation or problem that you had not previously considered. In these economic times, organizations need to embrace new solutions that can do more with less and put you at a real competitive advantage. If you have kept the same vendor for let’s say five years how do you know what else is out there? Do you regularly measure you IT infrastructure against the best practices in the industry?
Technology changes every eighteen months and often times sooner than that. If you have not listened to other consultants or recently conducted an IT Wellness or optimization check, how do you know that the applications or the infrastructure developed meets the needs of the organizations business goals and objectives? Do you know how to build the business case for management that will preclude your IT department from getting budget reductions during these critical times?
Organizations have become extremely dependent on technology and understand that with the right applications business processes and methodologies they can make a real difference in the entire operation. CIO's owe it to themselves to continually research and put themselves in the position of entertaining new approaches and new ideas. Regardless of how comfortable you may be with your current supplier do you not owe it to yourself and your company to at least listen when you approached by a new supplier? I appreciate our tradition in Cincinnati to develop long-standing relationships, but perhaps we should question if these long-standing relationships are giving us everything we need from an IT perspective. What is my suggestion? The next time I call perhaps you might want to speak with me because I just might have a solution for a problem that you never considered before and it just may be the difference maker you have been searching for.
Talent Challenges
There is trouble in the near future for talent needs and it is coming in various flavors:
- According to the Bureau of Labor statistics, in 2010 over 10M jobs in the United States will go unfilled – in 2022 it will be 30M jobs
- College graduation rates are down to 54% and 75% of new jobs will require a college degree
- Making the wild assumption that Baby Boomers (44 – 62 years old) will leave the workforce when they are retirement eligible (is that at 55 or 65?) – there isn’t enough Gen X (28 – 43 years old) to replace them (78M Boomers versus 40M Gen Xers). Gen Y (7 – 27 years old) is big (70M), but still lacks the experience (hello…most haven’t even graduated) to make an immediate impact
- The average time in a company for Gen X is four years; for Gen Y it’s more like two and while the Boomers have been pretty loyal in the past, but the technology market hasn’t exactly rewarded them for that loyalty.
- According to an AARP survey of Boomers - 31% of mature workers became responsible for a dependent parent; 23% had an adult child move back home; and 16% were providing child care or day care for grandchild. 50 to 80 hour work weeks, while tolerated by Boomers and some Gen Xers, won’t be tolerated by Gen Y and won’t be of interest to Boomers as they ‘mature’ in their careers and many take on the care of family members. So, since everyone knows that a 40 hour work week for technology professionals is a joke – who’s going to be doing all the work?
Well, I was thinking there are a couple of answers here but those answers will involve a major paradigm shift in the way we think about our workforce today.
Baby Boomers are learning very quickly that retirement will have to be postponed because of our current economic conditions. This wealth of knowledge can be instrumental in assisting those organizations that are struggling with Information Technology Staffing because these folks are going to be around a little longer than they planned!
Information technology departments will have to create a hybrid workforce model that will be made up of Baby Boomers, Gen Xers and Gen Yers. Still another approach is to work closer with IT outsourcing partners to ensure you have the talent that you need. My organization, STAR BASE, Inc. makes finding superior IT talent for IT jobs a fulltime pursuit.
Finally, another emerging model that will be downsized IT department with only mission critical personnel and several part-timers that will be used from time-to-time. This model will be subsidized from time-to-time by outsourced to information technology staffing partners that can assist in bridging the gap.
Suggestions for CIOs in a Downturn
The global economy is tanking, layoffs are everywhere but organizations need to remain positive and work through these difficult times. Information technology is no exception to this statement. Often times when companies decide to cut budgets the information technology department is a prime target to be cut.
So, what can a prudent CIO do to address budget cuts while still operating his/her organization at a competitive advantage? Here are some suggestions that may help:
- Ratios - Look at your ratio of onsite permanent IT employees. Perhaps you could reduce the number of permanent employees to only those that are essential to the mission. Outsourcing the rest of the work to a local firm often times is far more cost effective than permanent employees.
- Time-to-Market – If products and applications can be delivered faster, though a combination of in house personnel and outsourced talent then companies will reap the benefits sooner. Work closer with your outsourcing partners to save time, investment and even the dreaded budgets cuts.
- Revisit your Processes – By working closely with your outsourcing partner. If your team can find how to deliver applications an automated process with fewer touches and less defects there will be less time and money spent on re-works. IT departments must leverage knowledge, experience and tools to gain a competitive advantage while decreasing cost.
- Productivity Improvements – Your internal and your external outsourcing IT partner must embrace being able to accomplish more in less time and at a lower investment. The true business value of IT will be felt across the enterprise.
- Negotiate Your Rates – Any true business partner or business technology consulting firm, will be open to rate reductions if you are willing to negotiate a long term partnership. Dedicated consultants are looking for long-term business partnerships. If you are willing to commit to a set amount of hours they will br eilling to negotiate rates with you.
Application development outsourcing and IT staffing outsourcing can have many benefits in these times of economic challenge. Your organization still needs to operate on a day-to-day basis. Re-think your approach for the mutual benefit of your organization and your outsourcing partner.
Improve Your Skills!
According to an international survey of senior business executives by global
consultancy, McKinney Rogers, business leaders believe that putting their faith in developing the skills and abilities of their workforce is the best way to reduce an organization’s exposure to the risk of recession.
With recent media attention focusing on the impact of sub-prime lending and the current global economic downturn turning into a full-blown recession, the survey, which encompassed Europe, Africa, Asia Pacific, and the US, was designed to gauge awareness, perceptions and trends on the issue and what can be done to minimize the risk of a recession’s impact on global business.
I would suggest that the same holds true for independent developers as well. If you want to ensure employability you need to be a life long learner with multiple skill-sets to assure yourself that you always have skills to offer regardless of the development platform.
I am a person who makes his living assisting firms to reach their technological and operational goals while the discover the real value of IT. One of the challenges that I face is trying to place the right IT talent into these organizations. As you read this blog you do not need me to tell you that the job market is extremely tight and companies are being very selective in who they hire and who they do not hire.
Not too long ago, application developers and technology consulting firms could concentrate on a given skill-set or set of tools and find plenty of opportunities to meet their offerings. That appears not to be the case any longer. Organizations of all sizes have multiple needs and they have learned that this world waits for no one. That means they must continually re-access technology, work processes and skill-sets to meet the demands of their marketplace.
These are the reasons why any Internet application developer or web application developer must learn multiple skill-sets to make sure they continually improve their value in the marketplace. It is no longer enough to have just RPG skills. Clients are looking for individuals that know RPG, J.D. Edwards and possibly some Java skills. For web develops we are finding that knowing Dreamweaver, Photoshop and ColdFusion are not enough. Depending on the firm that we are recruiting for they also want the people they hire to know PHP, MSQl, AJAX, .Net, Java and Javascript.
Want to make sure you’re always employable during these trying economic times? Increase your skill-set and make yourself more valuable to those organizations that are hiring.
Perception, Meet Reality!
The old saying goes that “perception is everything, especially in marketing or
individuals feeling on what reality really is.
My organization, STAR BASE Consulting, Inc. is a technology consulting firm who offers IT Talent on Demand as one of our services to our clients. We will offer clients temporary and fulltime consultants if clients should have the need. The process is rather simple but can become rather trying especially when a candidate has an unrealistic expectation on what a client’s needs may be.
Large clients usually have a very structured process for everything they do. These processes have been tried and proven over the years and it is what makes any given company successful. It have been my experience over the last several years that everyone is being asked to do more with less and that will equate to more than forty hours a week
Still, many software developers and consultants that I interview sometimes have an unrealistic view of what it takes to run a successful business. Listen up. The application development business is not a nine-to-five job. There are no constants in the application development business outside of change and anyone who has tried to meet production deadlines fully understands this. Organizations are under tremendous pressure to produce more and better every day and a great deal of this pressure includes ensuring that information technology can be used as a competitive advantage.
It has been my experience that professionals involved in information technology are involved in this profession because they have a true passion for technology. When one is involved in application development or web development of any kind individuals work until the project is completed to the clients’ satisfaction. Projects are not driven by forty hour work weeks.
This situation got me curious and I decided to research on where the forty hour a week originated. Here is what I learned:
The 8-hour day movement or 40-hour week movement (a.k.a. the Short-time movement) had its origins in the Industrial Revolution in Britain, where industrial production in large factories transformed working life and imposed long hours and poor working conditions. With working conditions unregulated, the health, welfare and morale of working people suffered. The exploitation of child labor was common. The working day could range from 10 hours up to 16 hours for six days a week. These types of conditions do not exist in the free world today, so why must we continue to embrace nine to five with an hour off for lunch? Is this productive?
Finally, let’s talk about today’s reality. The economy has tanked, individuals are losing jobs left and right around the world and employers understand that they control the market today. The forty hour work week is a practice of the past but actual went by the wayside for American workers towards the end of the eighties. Everyone is being asked to do more with less and that my include working more for less.
For those developers that do not want to work more than forty hours a week. I offer this. Remember there are plenty of foreign nationals with excellent skills that are more than willing to work those extra hours just to taste the freedom and the opportunity that this country has to offer. Count your blessings and reconsider when an employer asks you to extend yourself because perception is not always reality in today’s workspace.
IT in a Tough Economy
Like everything else, the economic downturn is affecting IT Departments everywhere. Projects that were ‘earmarked” for completion are being put on hold and IT budgets are being cut as well. However, IT Departments can help their organizations by selling them on the idea that IT can be used as a competitive advantage.
The key to running a successful IT department is knowing how your organization makes money and not proposing or running projects that are counter productive. Until an IT department re-examines their current process and methodologies and puts together a plan that can transform IT into a competitive advantage for their organization - they run the risk of having budgets slashed and staff reduced. Application development services must be developed with these facts in mind.
Most people in IT use the MS Office applications the same way year in and out. For the most part, they only scratch the surface on what they can actually do with these tools. Additionally, every organization has developed specialty applications within their organizations to meet the needs of the organization. However, far too many organizations have not optimized their applications to enhance the overall value of the IT department. Projects and IT staffing cuts are made many times because organizations do not understand the impact and the value.
Making sure your organization fully understands the value proposition is more important than ever in these economically trying time. The Information technology department can be the outstanding spot for any organization because it can do those things that save money rather than those that make money. It’s not that you do not want to make money. It’s that cost-saving projects tend to be easier to measure and are more predictable than products or services that are dependent on how a customer is going to react to what your organization is offering during these tough economic times. I believe these cost-saving projects will assist any IT department in minimizing costs while maximizing value in these difficult economic times.
IT Infrastructure Management
One of the telltale signs of over taxing the US infrastructure is the economic turn down that has not only affected the US but many parts of the world as well. Our healthcare system is crying for change, or airline industry is running on a 30 year old infrastructure and many corporations are still trying to operate business with technology that is outdated and maxed out. Yet, organizations seem to want these systems to produce more even though they personally do not invest in their upkeep.Fact of the matter is – most organizations maintain their automobiles better that they maintain their IT infrastructure. It is a fact that technology changes every eighteen months. So, why is that far too many companies insist on using the same systems that they purchased twenty years ago? I believe one of the reasons for this is that far too many organizations do not realize the business value of IT along with the advantages of IT optimization. For too long, IT has been looked upon as a cost center instead of a viable contributor to the overall value of the business.
Ask any CEO today of any organization how vital technology is to their business and 9 out of every 10 asked, will state that their business would not survive without it. If this is indeed the case, these organizations need to ensure that the technology and IT systems that they depend on should be reviewed on a regular basis. One of the ways to make sure that your technology is in good operating shape is through an IT Wellness Check™. My organization, STAR BASE Consulting Inc offers such a service and it is designed to provide a professional third party benchmark based on industry standards on the effectiveness and wellness of your IT systems.
A word of warning as it pertains to IT systems and IT infrastructure. They both had a lifespan and it would behoove any firm that is dependent on technology (virtually and organization today) to take a serious look at its current IT systems and to determine what the overall wellness of its systems is. Ignore them and they will fail you much like the US financial infrastructure has failed the United States recently. Everything worked really well for an extended period of time but when it started to fail it failed in many areas. Do not let this happen to you – take preventive action now!
Suvival of the Fittest
Information technology consulting enables me to observe many organizations and to determine what works and what doesn’t. In the past the one basic quality that an IT strategy consultant needed was to be technical and to have a skill in a given area. However what was true yesterday is not true today. Today, it seems this is a nice quality to have but it is not the only characteristic one needs to advance their career in information technology.
To succeed today as an IT strategy consultant, and to advance your career to the “next level”, you need some very basic skills or qualities that most successful IT consultants have. There is a commonality amongst successful IT consultants that I see that enable individuals to stand-out from their peers. Those traits include:
1. The ability to assess needs. Technology as s business moves at the “speed of light” and organization needs true business partners to assist them with good judicial decisions.
2. The successful IT strategy consultant must be able to create a vision. If you cannot articulate how an application or an integration solution should work, you cannot expect to have acceptance from the person or group you are trying to influence.
3. You must have the ability to create a plan and to create a map to carry out your plans. Plans cannot be approved if they cannot be understood.
4. Ability to pool resources. Focusing on how to identify the right resources at the right time greatly enhances the chances that your vision and plan can gain acceptance with your client or organization.
5. Must adapt to a “client service” mindset. A high level of client service is important for any successful IT organization. Make sure that you not only understand your department or clients needs, you also know how to meet them.
6. The ability to manage projects. It is well known that over 70% of all IT project failures are a result of poor project management. Make sure your projects do not contribute to this statistic.
7. Ability to accept and respond to change management processes. Getting things done by accepting the fact that things will change will go along way in advancing ones career in IT consulting.
8. Ability to communicate effectively. Many projects fail because visions and plans are not communicated effectively. Organizations and/or clients cannot endorse what they do not understand. Technology consultants that achieve the greatest career success are those that communicate effectively.
9. Understand how to prove return-on-investment (ROI). Organizations and managers in today’s marketplace must be able to provide a ROI for any project. Make sure that you can attach a clear picture of ROI for an application or project that you are a part of.
10. Be flexible. Things change in today’s IT environment on a regular basis. Make sure you are not so rigid that you are unable to “think outside of the box”.
The qualities that I have spoken about here are not etched in stone but they are qualities that I have observed to help and assist any IT strategy consultant that is trying to advance his or her career.
Predictions for 2009
Many organizations that are a part of IT outsourcing and business transformation outsourcing (BTO) are slightly concerned about the economy in 2009. However, IT outsourcing was important before Bear Stearns, Lehman Brothers, Freddie and Fannie, AIG, and the big three automotive manufacturers. These events have underscored the importance of outsourcing because companies believe that transformational outsourcing can help them to service the economic downturn.
According to the International Outsourcing Forum (IOF), "the global outsourcing and off shoring market is expected to grow from approximately $10bn today, to between $50bn and $60bn by 2009". This dramatic market growth will create an additional three million jobs worldwide by 2009. While one million jobs are likely to remain ‘near shore’, the remaining two million will be relocated based on the price performance of location."
I believe here in the United States that when it comes to technology and the value it can bring, organizations realize that it is a vital lifeline for their very existence. More and more organizations are also coming to the realization that they do not have to do everything internally but can partner with the right trusted technology consultant to handle many of their IT needs. The economic downturn events of the past couple of months have made organizations come to terms with their vulnerability and question what they will need to survive in the coming years.
IT Outsourcing will remain a viable business in the year 2009. As companies seek to reduce payroll while increasing productivity there is going to be a need for IT talent. Where will organizations look for this talent? The answer is quite simply where ever they have to. More organizations are going to increase their working relationships with those trusted partners that can help manage their risks and provide IT talent on demand.
I predict that IT outsourcing and technology consulting will have a “busy year” next year for three reasons:
1. The slowdown in the world economy
2. The Presidential election is over and some level of stability will occur
3. Organizations realize that technology can make a huge difference in productivity and profitability and will seek out trusted advisors to assist them in making a difference
Those are my thoughts, what say you?
Can Anything Remain Stable?
in spurts and goes through trends. The Outsourcing of IT is no exception. For all of those organizations that thought they had an “IT Strategy” they quickly learned that the strategy is only as good as the business model that it supports.Outsourcing IT is no exception to this rule.
For the past several years organizations have learned that outsourcing may not be the ultimate answer because “the playing-field” has changed and organizations need to adapt. In this period of downturn, the outsourcing of IT to foreign countries is no longer the bargain it once appeared to be. Since the U.S. dollar has been devalued it has had a direct effect on the pricing that organizations receive from off-shore countries.
I wrote yesterday in my blog, “Outsourcing and IT” that in India, a country that supplies and services a good portion of the U.S. outsourcing needs is starting to use third and fourth tiered personnel to supply services. The glaring problem with this is that it suggests that organizational projects can be put in jeopardy by continuing the same practices with less than qualified people. This costs a company time and investment leaving an organization questioning, “where is my competitive advantage?”
Insourcing is not something you hear about every day, and yet, it appears that the brunt of the American Corporation Outsourcing has tapered off and is on the decline, along with the US Dollar. Insourcing is when companies decide that they can afford to do the same jobs that they sent to other countries, in-house or thru local subsidiaries and technology consulting firms.
In the practice of information technology I would suggest that we have been hit hard by outsourcing and it has lead to massive lay-offs. Now some of those jobs are coming back or so we think. I believe there is a balance that can be struck. Companies may not be able to build massive IT departments like they once had, that is not cost effective, but they can partner with technology consulting firms to assist them when they need IT staffing talent or when they need IT expertise or mentoring from time-to-time. My organization STAR BASE actually has a program called "CIO Assist" which is a way to provide any organization with the IT expertise they need on a short-term basis
So, to answer the original question, “Can anything remain Stable?” The answer is no, but in this case, a combination of insourcing/outsourcing does just the opposite for the US Economy, it helps lower the trade deficit, provides more jobs for Americans and it means a more streamline process. Perhaps this is a start in helping to repair the economic downturn in this country. This pleases me as I hope it does my readers. Blog on!
Outsourcing and IT
The recent economic challenges that the United States and the rest of the world is facing has effected more than the loss of jobs. Organizations that were dependent on Indian community out sourcing are now faced with a new dilemma, inferior talent.
About 60% of India’s IT outsourcing business comes from the United States and 40% of the work is in the banking, insurance and financial service sectors. To ensure that they can maintain or at least keep pace with the downturn, these firms are taking steps to protect themselves from the problem. One of the first steps they are taking comes in the form of reduced hiring of entry-level engineers and looking at second-tier cities with lower labor costs. The Washington Post recently published an article on the effects of the economic downturn and the steps that the Indian community it taking to combat the downturn.
The outsourcing of IT has been driven by the insatiable appetite of the United States that will continue to drive the practice in hopes of reducing headcount. A word of caution would be advisable for the future. If outsourcing means getting second and third-tier resources what will that do for an organization that is seeking a competitive advantage? Clearly it will be hard to justify the economic benefits of untested staffers.
My organization, STAR BASE Consulting, Inc., tests and pre-screens every candidate that we place. We believe that a poor candidate is a reflection on our firm. My suggestion is that regardless of which firm your organization uses to produce IT staffing, do not choose a firm that does not test and who does not pre-screen. In this day and age of identity theft it appears easy for a person to represent themselves as someone they are not.
Do you want to risk the success of your projects and the reputation of your IT department to an organization that promises more with less?