Question: How can one reduce
behaviors that are wasteful of IT resources?
Our advice:
Companies have cut their operations over the past several years to reduce
costs. Few companies, however, have attempted the disagreeable task of
eradicating wasteful internal behaviors, even though the potential cost savings
are substantial, particularly in IT.
A few counter-productive behaviors account for the majority of waste. Companies
that concentrate on eliminating these can reap significant cost savings:
"Under the Table" Work (UTW)
UTW is a widespread phenomenon, in which users bypass official channels and
personally contact developers to slip in changes the next time a system
undergoes maintenance. These requests never get prioritized against competing
proposals, and often have dubious business value. At one client, the volume of
UTW accounted for 50% of programmer effort. IT organizations can cut those
requests by formal request management, and by rotating personnel to disrupt
personal relationships that foster UTW.
Duplicate Activities In large enterprises, it's common to have multiple
projects that overlap, or even work at cross-purposes. Eliminating duplicate
efforts can produce substantial budget savings. Regular communication can
unearth duplicate projects and spot opportunities to merge or coordinate
projects. Management discipline is essential to force consolidation and
terminate unnecessary efforts across lines of business.
Personal Preferences Even official requests can rob productivity when
they're motivated by personal preferences. Moving fields around on a Web page
may satisfy an individual's preference, but is it returning value? To ensure
that business value is driving IT work requests, managers must assess each
change request for its value to the enterprise. Some type of charge-back
mechanism, no matter how rudimentary, enables business managers to evaluate how
their subordinates are consuming IT services, and discourages frivolous
requests.
Feature Proliferation Software developers also are guilty of wasteful
behaviors when it comes to adding unnecessary features to software. Unnecessary
software features greatly increase code complexity and drive up maintenance
costs while adding little business value. Studies of code-control flow have
shown that only a small portion of an average system is ever executed, while
the extraneous code only complicates diagnostic and enhancement efforts. IT
organizations must avoid adding "nice to have" features whose costs exceed
their value.
Symptom-fixing Most production software will inevitably suffer failures.
While this is to be expected, enterprises shouldn't accept having the same
problems recur. Shortsightedness, combined with an unwillingness to expend
effort, leads many IT organizations to apply patches that fix the symptoms, but
not the underlying problem. Repeatedly fixing the same problems is pure waste.
By investing in tools for root-cause analysis, and by instilling a "fix it
once" attitude, IT organizations can avoid the repeat costs of software
failures.
-- Ian Hayes
What does a CIO have to
do to establish a leadership-development program for the IT organization?
How do I develop a information-technology plan when the company itself
doesn't have a strategic plan?
What are the most
productive tasks an IT leader can focus on?
After three years of downsizing and cost cutting, how do I motivate my
management team and build a high-performance organization?
As the economy turns
around, what IT skills will be most in demand this year?
How should we manage change in our IT infrastructure to minimize risk?
Several weeks ago, you wrote
about when a project-management office makes business sense. What is the
appropriate design for a PMO?
The economy seems to be picking
up. Looking ahead, how do I retain good IT people in the face of an improving
IT market while my budget remains under pressure?
What IT skills will be most in
demand this year?
How do I objectively
evaluate the readiness of my organization to support emerging business
requirements?
What cultural and people factors
are important to consider when building IT capabilities to support
manufacturing factory and retail operations in China?
How could the Project
Management Institute help us effectively manage real-life IT projects to ensure
success?
How do we make our
communications proactive, rather than only getting to them when there's a
crisis?
What are the critical
success factors to achieve and maintain strategic alignment?
How can we develop an enterprise architecture across disparate business units?
How can I develop a
long-term information-technology plan when my company doesn't have a strategic
plan?
What attributes and
features should we consider when selecting IT asset-management software?
As an overworked IT manager,
what can I do to reduce my workload while maintaining high availability and
good security?
We're under management pressure to
outsource application development and to cut staff, but I'd rather get more
value from our existing staff, who know our business. How can I broaden their
skills?
As business picks up, what should I do to rebuild my organization, tactical
plan, and internal-management processes?
We have a strong team that
I'd like to make stronger. How do I instill more leadership qualities and
skills into my team?
What organizational structure would be most effective for
information-security governance?
How can we achieve effective
process ownership within our IT organization?
What organizational,
people, and process issues should we consider when setting up a telecommuting
program?
We've cut staff so much
in the last four years that I'm wondering if I can afford (from a work
perspective) to take vacation this summer. What can I do to reduce the chance
of something unraveling catastrophically while I'm away?
A few weeks ago, writing
about creating a vision statement, you said "seek expert facilitation to reach
a vision supported by all." Where can we get this expertise?
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?
What level of IT spending is appropriate for a midsize to large financial
organization?
How should we assess our
IT organizational structure and processes?
How can we retain good IT people
in the face of an improving IT job market?
How should we determine the
appropriate network-support staffing level for a 10,000-node network?
What strategies are most
successful in a "political" organization?
How can one reduce
behaviors that are wasteful of IT resources?
How can we raise the IT knowledge of non-IT employees?
I'd like to establish a
management mentoring program within my organization. How should I start?
How should we deal with
the cultural and skill-set changes needed when moving from mainframe-based
applications to client/server and Web-based applications?
We're considering setting up
our own IT-abuse investigations group. What issues should we consider in making
this decision?
How should we assess and set priorities for our IT project portfolio?
What features should we
consider when selecting portfolio-management dashboard software?
How do we minimize the
negative impact of project cancellations on IT staff morale?
After three years in my current CIO position, I still find myself out of the
loop when it comes to strategic business decisions. What can I do about this?
Many large companies have a
project management office responsible for portfolio and program management.
When does a PMO make business sense?
After the extended economic downturn, we need to create a new vision for the
organization. How do we do that?
What technical and
security issues should we consider when setting up a telecommuting program?
How do we change IT from
reactive to proactive in a change-resistant corporate culture?
How can the CIO shift
the IT organization's mindset from service delivery to value creation?
What criteria should be included in the due-diligence assessment of IT at an
acquisition candidate?
How do I establish my
credibility with the CEO, chief operating officer, and CFO?
How do I motivate my
technical staff to cooperate with staff from our offshore outsourcing vendor?
|