Monday, December 15, 2014

Two paths at crossroads, which one did you take ?

They were deemed a reference customer for the industry and one of the favorites of the big name vendor and solution provider. Over a long period of the relationship they had acquired almost every solution from the same vendor for any business problem. At times the price was quite attractive to turn down the offer, and at times the perceived time taken, complexity of evaluating and then implementing another solution appeared to be too big a task. So the CIO and her team continued to invest with their preferred IT partner.

Life would have continued for them with incremental innovation and harmonious coexistence with their vendor ecosystem had not events overtaken them. The company was caught up in an industry turmoil which required information agility they had never experienced before. Their strategy to stay with one solution provider had given them a basket of solutions for every stated need; the implementations technically successful and were declared live. The business use found them lacking in the new paradigm when efficiency mattered.

Earlier business had continued to use parallel systems and created business critical spreadsheets that became the lifeline for the enterprise. The level of (in)efficiency was deemed acceptable as change required them to actively participate in the definition and building of the solutions. It appeared easier to let the IT organization manage the complexity of IT’s favored solution which ended up becoming a system of records while business users added headcount to solve problems. Now the murmur of disenchantment grew louder.

The CIO was in a fix and wondered why her winning strategy was no longer deemed effective ? They had bought from one of the largest providers in the world and the vendor had in many meetings acknowledged the leadership in implementation of some of the solutions. Business had participated in the selection of the solutions in almost all cases and signed off the choice. Now how could they be pointing fingers and distancing themselves ? Okay, there were some disagreements on the solutions and partners, but …

The applications lead had grown within the ranks and his first implementation of any major system was from this big solution provider. The success of the first big step gave him sense of invincibility if he continued to bet on the same provider. Guess what, it actually worked for a while and the resultant growing arrogance made him deaf to the occasional issue and limitation. After all not every wish list can be fulfilled by the solutions; why did they not admire the brilliance of simplicity of integration of parts from the same vendor ?

The CEO instructed the CIO to benchmark with specific companies to find out how they stacked up in comparison and what they can learn from some of the finest companies. Initially skeptical and full of themselves, the CIO and the team ventured out to explore the world and how others lived. The chosen benchmark had a much awarded CIO who was seen as an early adopter and trend setter. He was always happy to share his success with others and welcomed the team to spend time with him and his IT and business teams.

There were many common solutions deployed between the two companies; they had the same big name vendor as their primary provider and that is where the similarity ended. The CIO had given the freedom of choice to his team to seek solutions beyond the initial investment. In fact he challenged his team to find alternatives just to be sure that they had covered all options before making a choice. They were cautious of the fact that they did not want compromise solutions and were willing to stretch to get the best.

Both companies having started their IT journey had taken different paths at the crossroads; one had gone down the well-trodden path of low risk and reaped the fruits that came along the journey. The other created their own path and enjoyed the journey and the new experiences that it brought. The first was finding her achievements pale in comparison to the risk taker who had the business totally in sync with the decisions, the pains and the success. Two different paths enabling business, two different outcomes, two tales of success.

Which path have you taken and what is your story ?

Monday, December 08, 2014

Scaling IT with the business

It appeared like a losing battle for the CIO; he was struggling to keep momentum going with new initiatives as well as running the business as usual. Most function heads had begun raising voices in review meetings; the CIO had been unable to find time to attend the last two management meetings trying to solve one crisis while other fires burnt bright. He was running faster than ever before to stay in the same place but was unable to; despite best of intentions and good past performance, the CIO was facing a credibility crisis now.

It was a traditional company with nondescript existence for a long time with unimpressive growth and undifferentiated products. They hired people below market median who worked with them until they retired; you could find employees with impressively long careers in doing the same thing for decades. They had invested in IT along with everyone and like everyone they had stuck to automation basics. Everything worked but never reached a wow ! Parallel systems continued thereby rendering the entire framework a passive failure.

Then something explicable happened, no one knows what changed but the company found its mojo after a long time; the business started beating market growth and acquisitions added to the excitement. It brought lot of expectations and the demand on IT suddenly multiplied. New opportunities required new skills and way of working for which the CIO and his team were unprepared. They toiled longer and harder in a quest to meet the demand; they did deliver more than they had done earlier but somehow it did not seem enough.

The CIO had hired based on need and the team was happy to find stability which they valued; they were good in a passive way and executed the orders they were handed. They never had the opportunity nor the need to collaborate or take first steps; the company was satisfied with what they had. Over the past year the CIO attempted to change team behavior and found capability improvement had limitations. Training, coaching and mentoring got acknowledgement of lessons and then they would be back to normal as soon as they went back to their workplace.

Pressure on the CIO and IT team increased manifold creating a cycle of underperformance and frustration on both sides. Adverse impact to process and efficiency due to lack of IT solutions began affecting the business. Not seeing any visible change, Human Resources was confidentially tasked to build a parallel team including finding a new CIO ! The news trickled back to within the company after some time leaving the IT team scurrying for survival. Shaken the CIO conferred with the team to explore avenues to bring themselves back into relevance.

Variations of this situation repeats itself in many enterprises where IT teams fail to keep up with changing expectations. As a C-level executive, the CIO is expected to anticipate change and plan for it rather than been told what to do; inability to demonstrate leadership results in change of CIO who pays the price for failing to scale and change with the times. Sometimes the IT team sees forced attrition and collateral casualties which leaves the team either weakened with the exits or strong with infusion of fresh talent.

It is imperative for CIOs and IT teams to anticipate change to stay relevant in the new business; they are expected to be equal partners and work across layers to institutionalize new technology enabled processes. Failing to stay relevant (see Stay Hungry, Stay Relevant) will create situations described above. The problem is a lot more widely prevalent than acknowledged; the real CIOs are able to thrive in this uncertain world, the wannabe CIOs and IT Managers sporting the title give away their lack of maturity and ability.

The CIO rose to the challenge; seeking help from industry peers, he worked with HR to segment the team into groups based on competency and capability. The group low on competency and capability was outplaced with help of IT partners; competent team moved into operations while the capable teams were happy to move into other functions. The last group which had competency and capability scaled into business facing IT roles. Fresh blood inducted into the team strengthened the organization ability to move with the times.

The CIO earned his position onto the Management table where he was welcomed as an equal.