Technology is a wonderful thing. It creates new opportunities to build a global business from your home. All businesses need computers today, most jobs require computers to get things done, and yet many people pass the job of managing computers to junior staff.
It's understandable that business owners don't want to do the drudge work. Unless you get excited by doing a lot of routine activities, managing computers is not exciting work. It also gets in the way of managing your business. You want to get customers, make sales, bring in revenue. Sometimes, it's hard to relate computer activities to managing your business. The most important ones are the routine ones, the ones that we forget, or don't understand the implications.
This list of security related issues affect most small businesses. They affect large ones too, but large businesses have people who focus on this. In a small business, the buck stops at the business owner. It doesn't mean that the business owner has to be involved every day, but has to make decisions on these issues and ensure that somebody is covering it (either staff or a supplier). If not, the risk is loss of data, loss of productivity and in many cases, loss of a business.
Tuesday, September 23, 2008
Wednesday, September 17, 2008
Who is responsible for IT project results?
Many of the business owners and managers that I talk to are frustrated with the results that they get from IT projects. They take too long, they cost too much, they don't do what the business owner or manager want to do. Even with those who are relatively satisfied with the results aren't getting what they should be. I see many businesses who are satisfied with the results when so much more is available..
Why does this happen?
The reason is that there are three conflicting goals in any project. They are conflicting because even though everybody believes that they are all important, they compete for resources, for attention, for focus. The three are:
Why does this happen?
The reason is that there are three conflicting goals in any project. They are conflicting because even though everybody believes that they are all important, they compete for resources, for attention, for focus. The three are:
- Implementation of the software and processes to get the improvements that your business is looking for.
- Achieving the business goals for which the software and hardware was purchased.
- Running the day-to-day business.
The first goal gets all of the attention. Usually a project manager is assigned, and she knows that she must get the software installed in order to have a successful project. If the project manager is your software supplier, his goal is to get paid. What is a successful project? At best, the software delivers the functionality that was requested, at the cost that was estimated, in the time that was planned. Why did I say at best? Because if that is the criteria for success why was the business doing it? A lot of consultants have studied IT project success. In these studies, although there have been improvements over the past ten years, aprroximately 30% succeed, 40% have limited success, and 40% are outright failures. Even with those successful projects, they achieve less than they could have. The project manager typically owns this goal and tries to keep everybody focused.
The third goal, running the business, has to get attention. It is what brings in the money. It pays for the purchase of the software, which is supposed to improve business performance. The first goal competes with the third goal, because they both need resources (people, time and money). Few businesses have periods of downtime that allow them to reallocate resources to projects during slow times. Most of the time, both peak at the same time. In addition, implementing new software and learning new ways of doing things reduces productivity. So you have peak resource needs for the project, peak resource needs for running the business and low productivity. This problem exists in large companies that can afford to throw extra people at the project. It really hurts the small business. The business unit manager is responsible for this goal and tries to keep everybody focused on it.
The second goal is the biggest challenge. the reason all of this started is that the business owner wanted to improve performance. The software was purchased for this purpose. The assumption that was made, was that if the software was acquired, the business would be better off. The question that was missed is "how will the business improvements be achieved?". This may seem to be obvious, but it seldom is. Because nothing was specified as to how it would be achieved, the implementation of the software becomes the only goal. People lose touch with why it is being done. Since the business owner is not involved in the day-to-day activities, and seldom wants to get involved in the detailed activities of the project, there is a big gap.
This gap is the source of the problems. There is a focus on the delivery of the software. There is a focus on delivery of service to the customer. There is no focus on the business benefits.
The solution must come from the leadership team. The owner and senior managers must set the goal (to improve sales, reduce costs, improve service, etc.). They must ensure that everybody understands how the software will help to improve performance. They must maintain this focus throughout the project, because everybody will forget. If they do that, two things will happen:
- The software will deliver the business results.
- They will be surprised by the extent of the improvements.
Managing IT is like flying a plane
I heard an analogy recently that really describes the situation for small business owners. Many small business owners struggle with the software and technology that they use to run their business.
If they are not comfortable with technology, they tend to shy away from it. They look for someone who is comfortable with it and turn over ownership to them. Many of these people are indeed comfortable with technology, but have no idea how to run a business. The owner is not interested in learning more or working with technology, and is often frustrated with what happens.
I don't feel that business owners should have to be comfortable or understand how to fix computers or handle the many issues that are required. But they are business owners and must be responsible for the results. The results are what drives their business. They can't leave this with junior technical people.
Most of us have to travel long distances from time to time. When we do, we have to fly. When you get on the plane, do you turn to the left and go into the cockpit, or do you turn to the right and find a comfortable seat? Although there are a few people who would feel comfortable flying the plane, or who would like to learn to fly the plane, most of us would rather find a seat and enjoy the ride.
Let's take this a step further and we find a young person who is learning to fly, is excited with it and would love the chance to try and fly a jet. He may have had some limited experience and feels that he is ready for the big time. Are we willing to get on that plane with him?
Just because we don't know how to fly the plane and don't want to, doesn't mean that we can't take responsibility for the results! We know where we want to go. We know when we want to get there. We know the class of service that we are willing to accept. These are the business decisions and ones we must make. If we take the wrong plane and end up missing an important appointment, who is responsible? What would be even worse would be to turn it over to and inexperienced person who crashed the plane.
Managing Information Technology is the same. As owners, we are responsible. We must understand the value that can be delivered to our business. We must ensure that when we buy software to help us improve our business, we must be responsible for the results. With that responsibility, we must look for qualified people who can ensure that we get the business results that we need. We don't have to be technical. We don't need to pass off this responsibility to someone who likes to do it. Our business is at stake. Find a specialist who can help you to understand what you need to do as a business owner to get what you need.
If they are not comfortable with technology, they tend to shy away from it. They look for someone who is comfortable with it and turn over ownership to them. Many of these people are indeed comfortable with technology, but have no idea how to run a business. The owner is not interested in learning more or working with technology, and is often frustrated with what happens.
I don't feel that business owners should have to be comfortable or understand how to fix computers or handle the many issues that are required. But they are business owners and must be responsible for the results. The results are what drives their business. They can't leave this with junior technical people.
Most of us have to travel long distances from time to time. When we do, we have to fly. When you get on the plane, do you turn to the left and go into the cockpit, or do you turn to the right and find a comfortable seat? Although there are a few people who would feel comfortable flying the plane, or who would like to learn to fly the plane, most of us would rather find a seat and enjoy the ride.
Let's take this a step further and we find a young person who is learning to fly, is excited with it and would love the chance to try and fly a jet. He may have had some limited experience and feels that he is ready for the big time. Are we willing to get on that plane with him?
Just because we don't know how to fly the plane and don't want to, doesn't mean that we can't take responsibility for the results! We know where we want to go. We know when we want to get there. We know the class of service that we are willing to accept. These are the business decisions and ones we must make. If we take the wrong plane and end up missing an important appointment, who is responsible? What would be even worse would be to turn it over to and inexperienced person who crashed the plane.
Managing Information Technology is the same. As owners, we are responsible. We must understand the value that can be delivered to our business. We must ensure that when we buy software to help us improve our business, we must be responsible for the results. With that responsibility, we must look for qualified people who can ensure that we get the business results that we need. We don't have to be technical. We don't need to pass off this responsibility to someone who likes to do it. Our business is at stake. Find a specialist who can help you to understand what you need to do as a business owner to get what you need.
Tuesday, September 16, 2008
Speed bumps on your Information Highway
Speed bumps are an effective way to get people to slow down on the road.
They also affect the use of technology in your business. It can also go beyond technology and prevent you from improving your performance in other ways.
In a recent discussion, a client mentioned that there are a lot of opportunities and ideas for improvement, but there is no "down time" between events. This was identified by an organization that used events as a major revenue generator. The problem was that they knew the way that they managed the events was inefficient, but they couldn't improve them, because as they cleaned up from one event, they started another one.
This is also true in any day-to-day operation. When sales are good, everybody scrambles to respond to customer needs and doesn't focus on improving performance. Improving performance requires stepping back from the fray and looking at how you can improve the operation, then designing and implementing solutions. This becomes more complicated when you install new software or try to use the software that you have in different ways. You need time to learn how to use the software and figure out how to apply it to the problem. When you change something, you need to learn how to do it (even if you designed it) and this slows you down and affects productivity.
As small business owners, we often feel that we cannot afford increased expenses. This applies to software and the use of consultants or advisors. This costs us money. The only time we consider this is when business is not so good and we have to reduce expenses. They we find out that it will cost us to save money, and we are doing it in a declining market.
When you are driving slowly on a built up road, speed bumps are not a problem. They are only a problem when you have an open road and an opportunity to move faster. The same is true of speed bumps in your business. When business is great, you have an opportunity to increase sales even more, by improving productivity and reducing costs, but you can't do that without help. You don't want to take on long term projects that may someday gain some benefits. You want to focus benefits that improve productivity in the short term, while business is booming. The way to do that is to have someone look at existing business processes and what is holding you back, then work with you to develop actions.
You can't afford to have someone study your needs, make recommendations and walk away. Knowing what to do is not enough. The speed bumps will prevent you from developing solutions. You need focus and support during the implementation process. This is even more true when you are running hard to keep up with customer needs.
Having a trusted advisor, who understands your business (and not buried in day-to-day activities) can help you to take a broader view of your business operations and help you to maintain focus during these critical times.
They also affect the use of technology in your business. It can also go beyond technology and prevent you from improving your performance in other ways.
In a recent discussion, a client mentioned that there are a lot of opportunities and ideas for improvement, but there is no "down time" between events. This was identified by an organization that used events as a major revenue generator. The problem was that they knew the way that they managed the events was inefficient, but they couldn't improve them, because as they cleaned up from one event, they started another one.
This is also true in any day-to-day operation. When sales are good, everybody scrambles to respond to customer needs and doesn't focus on improving performance. Improving performance requires stepping back from the fray and looking at how you can improve the operation, then designing and implementing solutions. This becomes more complicated when you install new software or try to use the software that you have in different ways. You need time to learn how to use the software and figure out how to apply it to the problem. When you change something, you need to learn how to do it (even if you designed it) and this slows you down and affects productivity.
As small business owners, we often feel that we cannot afford increased expenses. This applies to software and the use of consultants or advisors. This costs us money. The only time we consider this is when business is not so good and we have to reduce expenses. They we find out that it will cost us to save money, and we are doing it in a declining market.
When you are driving slowly on a built up road, speed bumps are not a problem. They are only a problem when you have an open road and an opportunity to move faster. The same is true of speed bumps in your business. When business is great, you have an opportunity to increase sales even more, by improving productivity and reducing costs, but you can't do that without help. You don't want to take on long term projects that may someday gain some benefits. You want to focus benefits that improve productivity in the short term, while business is booming. The way to do that is to have someone look at existing business processes and what is holding you back, then work with you to develop actions.
You can't afford to have someone study your needs, make recommendations and walk away. Knowing what to do is not enough. The speed bumps will prevent you from developing solutions. You need focus and support during the implementation process. This is even more true when you are running hard to keep up with customer needs.
Having a trusted advisor, who understands your business (and not buried in day-to-day activities) can help you to take a broader view of your business operations and help you to maintain focus during these critical times.
Monday, September 15, 2008
On the Theory of Constraints and IT
Dr. Eliyahu Goldratt wrote about the theory of constraints in this book "The Goal".
The original process was designed and implemented and everybody understood it when it started. In the normal operation of a business, some activities become more efficient than others over time. People learn how to do them more effectively.
When these activities become more efficient, a constraint is normally created in other activities that have not been improved. This activity becomes a constraint and inventory piles up in front of the constraint. We normally think of this in a manufacturing line, but the same things is true in a service process.
When things pile up in front of a constraint, the process breaks down and prioritization and escalation starts to happen. Effort gets redicrected from other activities to the area of constraint. While this gets the work out the door, it also impacts normal workload and problems and backlogs occur in other areas as a result.
This is the general concept of the theory of constraints. What does this have to do with Information Technology?
Information Technology can improve productivity and performance of an organization. It is often a much more efficient way of running than a manual operation. There are two issues encountered that relate directly to the theory of constraints and these are the key reasons for failure of many software projects.
The original process was designed and implemented and everybody understood it when it started. In the normal operation of a business, some activities become more efficient than others over time. People learn how to do them more effectively.
When these activities become more efficient, a constraint is normally created in other activities that have not been improved. This activity becomes a constraint and inventory piles up in front of the constraint. We normally think of this in a manufacturing line, but the same things is true in a service process.
When things pile up in front of a constraint, the process breaks down and prioritization and escalation starts to happen. Effort gets redicrected from other activities to the area of constraint. While this gets the work out the door, it also impacts normal workload and problems and backlogs occur in other areas as a result.
This is the general concept of the theory of constraints. What does this have to do with Information Technology?
Information Technology can improve productivity and performance of an organization. It is often a much more efficient way of running than a manual operation. There are two issues encountered that relate directly to the theory of constraints and these are the key reasons for failure of many software projects.
- When new software is installed in a business, management often assumes that the process still operates as it was installed a few years ago. This is seldom the case. Since productivity of some activities has improved, the process operates in a different way and has new constraints. Often the improved productivity provided by the new software operates on the already improved activities, not on the constraints, creating bigger problems for the constraints.
- Computer software comes with an assumed process built in. Most software is not very tolerant of exceptions and major problems are encountered when ongoing exceptions are found. This takes more effort to manage the exceptions, when the exceptions are already a burden. The number of exceptions and reprioritizations increases, creating a bigger bottleneck in the business.
Your goal is to get work out the door, satisfy your client's needs and get paid as quickly as possible. The "improved productivity" provided by the new software becomes a new bottleneck, reducing productivity and increasing frustration. All of this costs you time and money.
The problem started with buying new software to upgrade your business performance. See my article on "The Importance of Business Process" to find a starting point.
Monday, September 8, 2008
10 Reasons your small business needs a technology services provider
I found a blog entry that described these ten reasons and they are excellent points.
There is one issue that isn't mentioned though, and that is your service provider's focus. Many IT service providers to small business take the "break-fix" approach. That means that they wait until you call and fix the problem that you have identified. They have better skills and can fix the problems much more quickly than internal staff, but that is only a very small benefit.
The real issue is that technology can be managed, problems can be prevented. When well managed, the number of service incidents can be reduced, which means that you don't get the interruptions at all. This is where the real benefit is.
Read the 10 reasons
There is one issue that isn't mentioned though, and that is your service provider's focus. Many IT service providers to small business take the "break-fix" approach. That means that they wait until you call and fix the problem that you have identified. They have better skills and can fix the problems much more quickly than internal staff, but that is only a very small benefit.
The real issue is that technology can be managed, problems can be prevented. When well managed, the number of service incidents can be reduced, which means that you don't get the interruptions at all. This is where the real benefit is.
Read the 10 reasons
Wednesday, September 3, 2008
An IT project is a business change project
I just read an article by Jed Simms identifying that every project is a change project and should be managed as such.
What does this mean? Many of the business owners that I talk to are not interested in technology and don't want to have to deal with it. They aren't comfortable with it, despite the fact that it surrounds us. The reason is that much of the technology is hard to deal with. Software is developed by software programmers for software programmers. It isn't developed for normal people. So it's not hard to understand why business people don't want to have to deal with it.
The problem lies with the fact that when we change technology, we are changing the business. Our business processes are affected, therefore our daily work is affected. Our business lives are changed (or why did we do it?). We were looking for improvements, we were looking for change. When we change business software or even the underlying technology (like Vista), we are changing our daily activities. We do much of our daily work without thinking about it. When our subconscious takes over, we get much more efficient. However, when faced with change in our daily work, we have to start thinking about it. We have to learn these new ways of doing things. This slows us down tremendously. We become less productive.
In many cases, the change can feel overwhelming. There is so much to learn and we still have our normal work to do. What do we spend our time on? How do we prioritize? Since we can't get our work done in the normal time, we start to get stressed. We often revert to the way we used to do it, or find some other shortcut. These shortcuts are not always useful from the perspective of the new technology or software. This causes numerous problems.
As a business owner, you don't need to focus on this technology. You need to focus on the change in your business. How will your business be changed? What is the most important thing for your staff to learn about this new software? How do you get them to be productive more quickly?
This is what a change project is all about. This is why every business owner needs to be aware of the business impact. This is why any IT project needs to be dealt with as a business change project.
What does this mean? Many of the business owners that I talk to are not interested in technology and don't want to have to deal with it. They aren't comfortable with it, despite the fact that it surrounds us. The reason is that much of the technology is hard to deal with. Software is developed by software programmers for software programmers. It isn't developed for normal people. So it's not hard to understand why business people don't want to have to deal with it.
The problem lies with the fact that when we change technology, we are changing the business. Our business processes are affected, therefore our daily work is affected. Our business lives are changed (or why did we do it?). We were looking for improvements, we were looking for change. When we change business software or even the underlying technology (like Vista), we are changing our daily activities. We do much of our daily work without thinking about it. When our subconscious takes over, we get much more efficient. However, when faced with change in our daily work, we have to start thinking about it. We have to learn these new ways of doing things. This slows us down tremendously. We become less productive.
In many cases, the change can feel overwhelming. There is so much to learn and we still have our normal work to do. What do we spend our time on? How do we prioritize? Since we can't get our work done in the normal time, we start to get stressed. We often revert to the way we used to do it, or find some other shortcut. These shortcuts are not always useful from the perspective of the new technology or software. This causes numerous problems.
As a business owner, you don't need to focus on this technology. You need to focus on the change in your business. How will your business be changed? What is the most important thing for your staff to learn about this new software? How do you get them to be productive more quickly?
This is what a change project is all about. This is why every business owner needs to be aware of the business impact. This is why any IT project needs to be dealt with as a business change project.
Subscribe to:
Posts (Atom)
Posts
