Okay, this post is going to be a big shot across the bow, and for that reason I’ve waited a bit to post it – in order to try to get my thoughts together.
Having spend the last 4 years or so working in web agencies, I’ve seen the inner workings of the IT department in many, many companies – from mom and pop operations to Fortune 500 outfits. More often than not, the IT department is really, really broken.
First, let’s have a look at what broken means:
Symptoms
Lack of Prioritization
Faced with conflicting demands from different business units, the IT group is unable to plan where to spend its energy, and so lives constantly in a reactive state, servicing whatever the squeakiest wheel happens to be at any given moment. Essentially it’s locked into a state of putting out fires, and is unable to put energy into actually making things better.
Often this can be a result of lack of “informed power” regarding the IT department: senior management doesn’t really have the understanding to view IT as an allocatable asset, and no one in IT has the power to push back on the immediacy of the next business stakeholder’s fire – regardless of whether it’s important to the business or not.
Lack of Bandwidth
Related to the prioritization issue, but slightly different, is the fact that most IT organizations simply don’t have enough people to do the volume of IT work demanded by the organization. At the same time, however, there is resistance to hiring in IT, because IT is viewed as a pure cost center in most organizations. In other words, it is not viewed as a vehicle through which the organization can make money, but rather just a place where spending occurs. In an environment of cutbacks, it will be trimmed.
Communication Problems
Often business stakeholders and IT just can’t understand what the hell each other is saying. Business users generally have a sense that certain features are vastly more important than others, but don’t always communicate this prioritization if they’re not asked. Additionally they may jump immediately to a specific feature implementation (that may be taken as a requirement by IT) that isn’t really what is best for them. Business stakeholders are not going to have any sense of feasibility, however: they don’t know how hard it’s going to be to do things.
IT comes from the opposite end. They understand feasibility, but not business importance. Unfortunately IT has the habit of taking all “requirements” from business as of equal importance, and just plugging away, looking at things purely from a feasibility perspective. When combined with the business stakeholder’s habit of proscribing features instead of just stating needs, it can lead to a lot of wasted effort.
Fortress Mentality
When things go wrong with technology, who get’s blamed? IT. When things go right, who get’s credit? No one.
In a sane business decision, one weighs the upside against the risk. There are many cases where it’s worth it to take a risk in order to achieve a big payoff. But IT is essentially balancing risk against an upside of zero. Naturally, that means they will seek risk avoidance in every case. This minimizes the chances of things going wrong, but it also minimizes benefits that might be had from technology.
Consequences
These symptoms turn an organization’s interactions with their own IT group into a big, dysfunctional dance. Business stakeholders feel that IT is unresponsive, slow to complete projects, incomprehensible and too restrictive. They start to come to the blanket judgment that IT is not going to be a solution for their problems.
IT for their part, feels under-appreciated, constantly putting out fires, under-staffed and forever dealing with clueless users. They have ideas for how to make things better, but never have time to implement them. On the projects that they do get to work on, they’re shocked to find out that features they’ve worked so hard to implement are being unused by business stakeholders.
This dysfunction has even led to a culture of circumventing IT. Business stakeholders (as much as they might like to) realize that they simply cannot live without having certain technology services performed, but feel that IT will be unable to help them. At this point they may look for outside help – either from product vendors that claim to “do it all”, to agencies that usually make the same claim.
The product vendors or agencies may be just fine, but that doesn’t change the fact that the organization has chosen to outsource a part of its business, not on the basis that it isn’t core to their enterprise, but rather on the basis that they are incompetent to execute. Since IT work is often the automation of a core business process, outsourcing it can lead to a weaker overall organization.
So there’s a picture that’s probably familiar to many. How do we fix it though?
How to Fix IT
Fix the Accounting
If technology has benefit to an organization, then that benefit needs to be reflected in the way the organization accounts for itself. From a financial perspective, a business will look at the profitability of its various components (at various levels of formality, depending on the size of the business) and make decisions about where to invest.
Businesses need to stop looking at IT as pure cost centers. That means that the credit for adding value to business units needs to find it’s way back to IT somehow, and be measured against IT costs. Here’s two possible ways to do that:
Charge the Business Users
If business stakeholders use IT services, they have to pay for them. That way the “cost of IT” lands squarely on the business stakeholders that use IT services. Of course, the side effect of this is that the quality of what the business users are paying for will immediately fall under scrutiny, but that’s okay. The point is to make the organization stronger.
Credit IT with Results
Let’s say IT builds a system for a business group, and as a result there is a reduction of cost for that business group (or even better, a measurable increase in revenue). Some of that savings/earnings increase should again be credited back to the IT department, and shown as income (or something equivalent). Again the political side of this action will be determining how much credit to kick back to IT. Too much would additionally have the negative side effect of making the business groups less interested in such activities, as they aren’t being credited with the results.
Hire Technology Leadership
Particularly aimed at the communication / prioritization issues, the solution is to hire a senior person with a technology background who:
Can Translate: Someone who can speak the feasibility-heavy language of developers, and the priority-heavy language of business stakeholders. Someone who knows when to ask context-breaking questions, such as identifying the real business issues instead of just accepting prematurely prescribed solutions dictated by business stakeholders.
Can Design Solutions: Someone who can take the real business requirements and come up with a technology-based solution, then take that solution and articulate it as technical requirements for the IT Staff. This is an individual who understands both technology and business.
Has Authority: This person needs to be able to push back. It is inevitable that forces within the organization will attempt to mis-use IT, either pre-selecting the wrong solution, or by short-circuiting the priorities of the IT group. The Tech Lead has to be able to say no to those forces, and find a real solution that balances the real needs of the business stakeholders within the larger context of the organization.
Decompose IT
The most radical step is to send IT staff out into the wilds of business stakeholders. Instead of a common pool of IT resources, an organization could choose to send, for example, a technical PM, a couple of developers and a sysadmin out to exclusively work on the problems of a particular business group.
This is an approach that probably makes the most sense when the needs of a business group grow beyond a certain point. At that point using centralized IT resources becomes less effective than maintaining their own technical staff. The obvious concern is that efficiencies of scale are lost when technical resources are distributed amongst business groups, but this is a good choice when the effectiveness of those resources within the individual business groups makes up for any loss from decentralization.
The upside to decentralization is that the accounting problems just go away. The efforts and results of these distributed staff are just measured within the individual business group, who will either be able to justify the expense or not, on the same kind of merits that they use for everything else.
It is important in these cases that technology leadership/management is included in the distribution, or the business units can find themselves saddled with a lot of the communication issues mentioned above. Because of this, this is a significant and potentially expensive step for a business group.
Conclusion
IT in most organizations is broken – it’s not providing the kind of support and advantages to business users that it could, and is the source of frustration and feelings of helplessness for many employees, both business and tech. By re-structuring the way IT fits into organizations, it can deliver on it promise at last.