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Does Enterprise 2.0 actually mean a bigger IT Department?

by Jevon MacDonald

Initially it seemed like Enterprise 2.0 packages would unseat IT Departments. I have been a big proponent of the “dump your IT” school of thinking. IT gets in the way, they are cranky and always turning up their nose… right?

My mind was changed just a little bit a while ago when working with a client. Part of my work was to go in and have a look-see at the IT Department. Who are the bottlenecks? Who are the innovative and curious personalities?

This usually doesn’t end well, but it did this time.

You see, IT Departments can, in the right environment, be like little startups. Creative hubs of people who really do things and don’t just produce vendor requirement documents all day.

There are then, as I see it, two ways your IT department could fair out in this whole thing:

  1. They disappear. SaaS is so prevalent that all of your support and delivery is taken care of by a cadre of google’esque SaaS vendors
  2. Your IT Department grows by at least 100% from it’s current size, but your software costs are reduced by at least 60%

Let’s think about option number 2, because it is new to me.

Why expand your IT Department?
With the growth in Open Source solutions, and the ability to rapidly develop SaaS-style applications with frameworks, internal development or deployment of services can be increasingly attractive. Agile methods can also allow for just-in-time delivery of solutions as their need emerges, rather than being at the mercy of a vendor who may or may not be able to fit you in to their development cycle.

Reduced software licensing costs and the ability to manage most support internally through a properly configured development group will both contribute to funding this growth significantly.

In order to create an IT Department with these capabilities, you will need to change a lot about how you hire.

Hire for delivery, not manageability.
1 amazing developer can produce an inordinate amount of delivery-ready application as opposed to 10 easily manageable developers. Hire people who have done things on their own. Full-cycle development experience, self-motivated and creative personalities are all things you need.

Less managers, more developers
You need to promote your best developers into hybrid management/development positions. Let them work with other management on developing ideas and assessing needs, but expect them to get down and start coding along with everyone else when it is time to deliver.

You will also need to plant the seeds of some cultural shifts. To do this you may need to fire some individuals, and you may need to promote some others. Be open to this and ready to execute on your plan.

A sandbox culture
Managers, CxOs and others need to be introduced to the idea of working directly with IT in small iterations to deliver solutions that fit their needs. IT needs the ability to connect with individuals across departments and utilize them to inform software/service development. In an ideal world, this would not be a process, but a cultural quirk.

Tuesday morning meeting about a new system idea? Get IT in there, they’ll have a prototype by Friday.

Love of failure
Not all of these ideas and experiments will work, but each failure will inform a larger goal of establishing a rapid-development capability for your organization. Failures also become far less costly. Having an unsuccessful 2-week project to develop a customized CRM system is far less costly than having that Oracle project go bad.

New Vendor Relationships
Now that you have the competency to design, develop and experiment internally, your vendor relationships, and the type of vendors you deal with, will change dramatically. You will be most compatible with vendors who embrace standards, who are tightly focused on a few core competencies and who have equally creative and open cultures.

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5 Comments »

  Barbara Thomas wrote @ July 16th, 2007 at 8:08 pm

What an interesting, creative suggestion. I believe there are hordes of people locked away in IT Departments who would embrace this way of working wholeheartedly.

However, I think there’s one more critical cultural change that organisations need to face up to.

Stop making IT responsible for the way people acquire and look after corporate information.

Once that responsibility finds its rightful owners in the business, the IT ancien regime of hindrance in the name of governance will disappear. IT people would be free to use their talents to help people in the business create the apps they want. Within guidelines set by the business.

Better for everyone.

  Michael Clarke wrote @ July 17th, 2007 at 10:53 am

That’s pretty much where (through a process of extreme trial and error) we’ve ended up. The project list is more a ‘problems to be solved’ list and the team is expected to move around our different offices talking to stakeholders and joining dots. One caveat I’d add though is the idea of promoting your best developers to managers - that can be utterly disastrous. Sometimes management and project management talent coincides in the same developer body - but a lot of the time it doesn’t. That’s not something intrinsic to developers - it’s intrinsic to people. Some of the most effective leaders I’ve encountered in technical teams are actually not the best developers - but they are the people who’ve stood out as being the best organisers and best relationship managers.

  Chuck Pendell wrote @ July 17th, 2007 at 2:20 pm

First, let me divulge that we are a vendor in this area. Our company is called Connectbeam. We believe that there is a tremendous area in the middle of the SaaS approach, and the internal (double your IT department) approach. Specifically, the appliance approach to new “managed” applications, which retain all firewall protection, which provide the same SaaS level of application management, but do not require the IT department to double in size. The benefits are numerous, and include cost, time to market (20 minute installation), no training required, maintenance, monthly cash flow, etc.

  ewH wrote @ July 20th, 2007 at 9:59 am

Great post, Jevon. I would consider myself a hybrid manager/developer, and while the concept is spot on, you have to be careful to not fall into a traditional management mindset. Management is a black hole that can suck you into meeting hell and make you forget that there is actually more value in doing things, not just talking about them.

Brilliant!
-ewH

  Chris wrote @ August 29th, 2007 at 4:50 pm

I work in the Quality department in one of the plants of a very large manufacturing company.
We are a global company with a fairly large internal corporate-based IT department. We have over a dozen fairly large non-integrated software systems and numerous other smaller systems. Our “Corporate” headquarters mandates that we use these systems even though the actual users at the plant level are very upset with the anti-user-friendliness of some of these systems coupled with the need to enter the same data in multiple locations because of the non-integration issues. On top of that, we have constantly changing management and customer needs that require us to change data entry fields and reporting structures. Our IT is very, very slow and uncooperative with our requests for changes. In the cases where they say they want to help, they say that the canned (and very expensive) systems cannot be customized to our needs. Consequently, most users have resorted to developing their own MS Access and MS Excel “side” systems to meet their ever changing needs and worse yet, some of the users have resorted back to using hard copy/paper forms and processes.
IT has repeatedly beat me down to a pulp when I have tried to introduce new and inexpensive Open-Source solutions saying that nothing is free and giving other reasons why they won’t allow the new systems to be introduced. They end up spending months trying to convince me to drop my ideas.
When I have insisted on the solutions, they have offered to “help” me by taking months to document requirements only to end up telling me that I must use the current systems that the company has invested in. And by the way, I can only have “6 out of the 10” things that I need because the systems that they have “approved” can not do everything that I want. In the cases where they have exhausted me to the point of accepting their “6 out of 10 things”, they have then said that all they need is for me to write a project to get the money and they can proceed. Usually, the money is not available and the project dies. Worse yet, the IT department has then walked away claiming that they were successful in killing but yet another situation where the users were stirring everybody up for nothing.
In addition, the IT department continues to search and destroy anyone’s efforts in developing anything “on the side” stating that they need to approve everything.
The problem is that they don’t realize that the users are creating stuff on their own and complaing about their systems because there are legitimate problems.
I am extremely frustrated and I would like your advice on how to resolve my concerns.

Thank you.

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