Leadership

Transparency & Cost Optimization… Bank on it!!

By |June 19th, 2014|Categories: Leadership|Tags: , , , , , , , |Comments Off on Transparency & Cost Optimization… Bank on it!!

In my last blog I spoke about the four principles that lead to better Cost Optimization. They were Transparency, Flexibility, Simplification and Discipline. I would like to take this opportunity to discuss Transparency in more detail.

How many times has IT management staff felt that their business partners don’t appreciate or understand the effort, time and money required to satisfy a business demand? On the other hand, how many times do you think business partners wonder if IT is focusing on the correct enterprise initiatives, or why their requests are not satisfied to their expectation level? The answer? Too many times to count on both hands. Without transparency, the worst fears of both sides and all stakeholders become a reality.

Webster defines Transparency as “the quality that makes something obvious or easy to understand.” At TransAccel, we view Transparency as a prerequisite for making better supply and demand decisions that are based on cutting the right costs in the right way, while maintaining what is most valuable to the organization. With transparency, the IT organization can participate in valuable discussions that balance costs with IT benefits.

Transparency should exist across all sectors of IT – but especially crucial are:

The first step toward Transparency is to divide IT services into two camps: those that support core (vital, no one else can do them) activities and operations, and those that could be outsourced if need be (non-core). Obviously, step one goes a long way in determining where resources and assets should be allocated (or not). For transparency and cost optimization to occur, defining and validating IT business services must be carried out, even if this is done through a series of incremental steps rather than a complete transformation.

Poor Transparency …
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Increasing IT maturity: Jumping the (very high) Level 2 hurdle

By |October 31st, 2013|Categories: Leadership|Tags: , , , |Comments Off on Increasing IT maturity: Jumping the (very high) Level 2 hurdle

I often describe the Level 2 hurdle as the highest and hardest to jump over. I’ve witnessed many an IT organization trip and fall, ending up with the proverbial skinned knee. The biggest tripping point is also the most common one: IT leaders are too accustomed to managing “noise.”

The inclination is often to do something radical—like a reorg—in a desperate attempt to stop the noise. Can you start with a reorganization? Sure. But this only works for organizations at a very high level of maturity, where processes are well instituted. Likewise, it can also work for organizations at a very low level of maturity that lack process rigor, but it will often result in sub-optimization. It’s not about moving things around, it’s about doing things differently.

Getting past Level 2 requires a three-pronged approach:

Stop managing and start leading. This one’s not easy. Leaders at this level have worked very hard to get where they are. They’re confident in what they’re doing and they’re good at it. But when things start to change, the heroics stop mattering to the business and the noise begins, and it only gets louder as time passes. Often leaders make one of two decisions: 1) comply with whatever the business says, or 2) leave. But there is a third choice and it’s to lead, step up, break free from the rut of managing noise, and take the organization to a new place.
Make processes efficient, then effective. Organizations at a Level 2 already have many processes that are installed. Their focus needs to be on making them more efficient, and then effective. Gaining efficiency comes through repeating the process numerous times and measuring the results to continuously improve. As every good designer/architect …
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