Question: We know that we could
save money by consolidating servers currently scattered across business units.
How should we address the political issues around getting the business units to
give up their servers?
Our advice: One should approach this
initiative with caution and practicality, and do a thorough analysis before
implementation.
Some organizations are so dysfunctional that almost nothing works. I have come
across organizations where employees showed up not to make progress but to
block it. Past results are a clear indication of future performance. If
the organization has a legacy of failed projects, there's need for analysis of
the root causes, and for addressing them prior to any major initiative.
Barring these extremes, most organizational politics can be addressed through
logic and negotiations.
The key to politics is in understanding the landscape and the players. Get a
clear understanding of the history and dynamics of the organization. Also
understand the personal agendas, motivations, and hot buttons of the players.
Start by getting executive sponsorship, preferably on the business side. Using
the sponsor's help, approach other key executives to identify the team. This
ensures that key players are engaged and supportive.
The first task of this team is to create a project charter that clearly lays out
the vision, objective, scope, assumptions, approach, plan, and participants.
Get everyone--sponsor, executives, and the team--to sign off on this charter.
The team then prepares a business case that clearly articulates ROI. This
business case is the basis of addressing the logical concerns of the key
stakeholders:
Set realistic expectations
Conduct thorough business impact analysis
Identify key risks, their impact and mitigation strategy
Be prepared for a discussion on the following:
While setting savings objectives keep in mind these key trends
-
Hardware prices are falling
-
Business cycles are shortening
-
Service-level expectations are increasing
If cost savings estimates are based on hardware savings alone, then this is a
losing battle.
Forward or backward consolidation? Why?
Logical or physical consolidation? Why?
Rationalization across servers? When and how? Why?
What are the key facts such as capacity utilization? Peak loads? Connecting
pipes?
Now you're ready for negotiations.
Remember, negotiations are a give and take process. Before you expect "them" to
understand you, ask yourself, "do I understand them?"
Executives may oppose this initiative for two primary reasons:
Logical reasons, such as security and service level concerns.
Budgets: How will this affect their ongoing budgets?
The former is addressed through the business case.
The latter requires more work. Executives, like generals, do not concede
territory. It cannot be taken by force, either. Hence, one has to try a
combination of tactics.
Stick:
Deftly use executive sponsor pressure.
Link compliance with compensation drivers.
Carrot:
Make it worth their while to lose some money and control. They can gain more in
some other area.
Make sure that there's equity across the business units, i.e., one must not
give up more than the other.
This political battle hasn't ended with the "go ahead" decision. The "go ahead"
may be a strategic retreat in the face of overwhelming odds. They might wait to
subvert the implementation and still achieve their objectives. For you, failure
here will end the project and leave you damaged for future adventures. Hence,
careful planning can and usually does save the day:
Set realistic expectations.
Keep all constituents in the loop.
Communications is the key.
Do not rush.
--Sourabh Hajela
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