Fixing IT — Too Big to Succeed?
I encourage you to watch the video, it’s short (7:39) and makes some important points, which I’ll touch on below.
Serendipity, when it occurs, is a beautiful thing. Serendipity can occur when heads-down order taking is replaced with collaboration. Awareness of business concerns on the part of IT staff enhances their ability to work together with end users to create effective solutions. Awareness, however, is insufficient.
Woody Zuill‘s early remarks about the bureaucracy that gets in the way of that serendipity struck a nerve. Awareness of how to address a need does little good if the nature of the organization either prevents the need from being addressed. Equally bad is when a modest need must be bloated beyond recognition in order to become “significant” enough for IT intervention. Neither situation works well for the end users, IT, or the business as a whole.
So what’s needed to remedy this?
In “Project lead time”, John Cook asserted that project lead team was related to company size:
A plausible guess is that project lead time would be proportional to the logarithm of the company size. If a company with n employees has a hierarchy with every manager having m subordinates, the number of management layers would be around logm(n). If every project has to be approved by every layer of management, lead time should be logarithmic in the company size. This implies huge companies only take a little longer to start projects than medium-sized companies, and that doesn’t match my experience.
While I agree in principle, I suspect that the dominant factor is not raw size, but the number of management layers Cook refers to. In my experience, equally sized organizations can be more or less nimble depending on the number of approvals and the reporting structure of the approvers. Centralized, shared resources tend to move slower than those that are federated and dedicated. Ownership increases both customer satisfaction and their sense of responsibility for outcomes. Thus, embedding IT staff in business units as integral members of the team seems a better choice than attempting to “align” a shifting set of workers temporarily assigned to a particular project.
The nature of project work, when combined with a traditional shared resource organization, stands as a stumbling block to effective, customer-centric IT. IT’s customers (whether internal, external, or both) are interested in products, not projects. For them, the product isn’t “done” until they’re no longer using it. While I won’t go so far as to say #NoProjects, I share many of the same opinions. Using projects and project management to evolve a product is one thing, I’ve found project-centric IT to be detrimental to all involved.
Having previously led embedded teams (which worked as pseudo-contractors: employed by IT, with the goals and gold coming from the business unit), I can provide at least anecdotal support to the idea that bringing IT and its customers closer pays dividends. Where IT plays general contractor, providing some services and sub-contracting other under the direction of those paying the bills, IT can put its expertise to use meeting needs by adding value rather than just acting as order-takers. This not only allows for the small wins that Woody Zuill mentioned, but also for integrating those small wins into the overall operation of the business units, reducing the number of disconnected data islands.
Obviously there are some constraints around this strategy. Business units need to be able to support their IT costs out of their own budget (which sounds more like a feature than a bug). Likewise, some aspects of IT are more global than local. The answer there, is matching the scope of the IT provider unit with the scope of the customer unit’s responsibility. Federating and embedding allows decisions to be made closer to the point of impact by those with the best visibility into the costs and benefits. Centralization forces everything upwards and away from those points.
Operating as a monolithic parallel organization that needs to be “aligned” to the rest of the organization sounds like a system that’s neither effective nor efficient, certainly not both. When the subject is the distance between the decision and its outcome, bigger isn’t better.
Originally published at genehughson.wordpress.com on November 13, 2015.