Archive | CFO

The As-A-Service Economy is here to stay

In modern times we have become very much a consumer culture driven by an abundance of choice spurred on by deregulation, capabilities of new technology, market disruption and innovation.
The As-a-service economy has been fuelled by all of these key factors and allowed multiple organisations to enter these markets, providing both the technology platforms and innovative products for consumers to feast upon it.

The only way for vendors to rise above the melee of available products and services is too constantly innovate and supply services or products which are not available elsewhere with Apple being the undisputed current master here for all to mimic.
Other cloud vendors such as Salesforce are also strong in the As-a-service space for similar reason, by constantly seeking to renew and energise their platform with new innovation, features and tools.
You would not be able to build such innovation, tools and features into in-house platforms and systems at this pace, which lends more strength to the As-a-service argument of whether or not to include at least subtle flavours of it in your enterprise offerings.
The cloud platform may scare many with its ‘perceived’ insecurities and lack of control of data and feature but it enables organisations to set themselves up securely and grow rapidly with little initial capital outlay compared to the complexity of how things used to be.
Cloud services provide easy access, mobility, standardised practices and instant access to well qualified product(s) and subsequent features with often straight forward upgrade paths and clear product roadmaps.
It has also enabled a whole raft of brilliant applications, services and products for organisations of all sizes to augment their system and service portfolio’s with without huge capital outlay and can no longer be ignored.

The rise of consumerisation has driven much of the innovation we see today and this drives a constant lust for innovation and the rapidity of it when utilised in the commercial space.
We all want the flexibility, tools and services we are used to using at home to be available in the workplace and organisations that don’t respond to this will quickly lose staff to those that do.

The other main driver of the As-a-service economy is customer service.
In this more interactive and collaborative mobile focused world, the need for high quality customer service does not diminish but needs to evolve with customers now deserving more dynamic and engaging interaction beyond the traditional call centre or ‘look here’ approach.
If you are not presently positioned as a socially aware organisation that offers high quality, consistent and quick response customer service, your customers may force your hand and go elsewhere or insist you rapidly change your approach. With the advent of the power and pace of social media your poor service can quickly reach epidemic levels if not quickly resolved.

Innovation plays a key part in the way the As-a-service economy evolves with many technologies and platforms to fuel this not yet developed or ready to market with the whole Internet of Things model set to explode it out even further.
As a result, the As-a-service economy is here to stay and will only grow stronger and more prevalent in augmenting the enterprise system and product portfolios that organisations deliver and the services which all of us consume in our daily lives.

 

This post has also been featured on the HP Business Value Exchange here 

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Transformation – What level of surgery do you need?

 

In a surgical analogy, a transformation programme is relative to ‘open heart surgery’ as it is one of the most important and powerful opportunities you can undertake to change the purpose and strategic direction of your organisation.
Transformation programmes are a blend of business, people and technology change including root and branch process review. They are mainly focused around improving customer engagement, commercial return and re-energising the customer experience.
In the planning of any transformation programme, its imperative you fully understand the objectives you are looking to achieve and that your board or leadership team are fully aligned with and agree on the prioritisation of its primary objectives. Everyone must agree that the results you’re looking for are not only achievable and affordable but necessary for you to progress as an organisation.

For any transformation to be successful you will need the full support and buy-in of your whole organisation. Not just key stakeholders but all affected parties including key clients and partners, so you will need to have a full and open communications strategy at all times.
You will need to work out through internal and external consultation the level of necessary change and thus ascertain the degree of transformational surgery you need to perform including the level of process change you can readily consume alongside any necessary new systems, platforms or infrastructure to support it.
It is imperative you keep this communications line open and a continuous dialogue with your key clients to understand what they want from your organisation, what products and subsequent features they use or need and how they wish to consume them (don’t forget to focus on mobile consumption as this will affect your design and performance criteria). You should also take this opportunity to learn of competing solutions and how your products rank against them, which will often give you valuable feedback.

Strong leadership is required during any transformation programme so that it stays true to its principles and delivers its agreed objectives whilst staying open to internal and external client feedback throughout.
The leadership team will need to control the direction and pace of the transformation so that business as usual operations are not interrupted or allowed to veer off track (an obvious but often overlooked dilemma).
It is imperative the leadership team understands both the technology and business goals and how decisions in either can have a knock on effect in the other. Managing this critical symbiotic relationship will not only ensure adherence to the project plan but also limit costs and surprises along the way.

Most transformation programmes will require fine tuning and subtle alterations through their lifetime as not all necessary objectives will be deliverable without some form of tweaking.
Some objectives may not act as desired once in development or testing and require reworking, postponing until later in the programme or removal. This is where strong leadership and a firm hand on the tiller is imperative.

A full training, implementation and internal/external support plan is a major but often overlooked component of any transformation programme. Skip this stage at your peril as it will cause your transformation programme to fall spectacularly and very publicly at the last hurdle.
Transformation programmes of any size are major surgery on your organisation and subsequently need constant follow up and handholding of both internal staff, partners and external clients to make sure all of your implemented objectives are delivering as planned. This will allow you to make any necessary amendments and fine tuning whilst showing proactivity and desire to deliver the best possible results you can.

Transformation is an important process in reengineering an organisation and ensuring it stays relevant in how it operates, making sure its products and services are commercially relevant as well as improving the strength of the customer experience it delivers. It should not be taken lightly but when done well it can give you an enormous competitive advantage, re-energised staff, revenue generating products and an engaged client base.

 

This post has also been featured on the HP Business Value Exchange here and here on the IBM Middleware site in my position as a member of the IBM VIP Influencer Programme

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Symantec #DirtyTopics Twiter Chat – “How can the CIO & CFO partnership be improved”

dirtytopicsI was very happy to work with Symantec on their recent #DirtyTopics Twitter chat entitled, “The Unicorn Budget: How can the CIO & CFO partnership be improved?”

More information about the event can be found in my Forbes article – please click here to read and a recap of the Twitter chat can be found on Storify by clicking here.

Symantec event info: In our upcoming #DirtyTopics chat, an expert panel from Symantec and industry expert Christian McMahon (@ChristianMcM) will discuss managing IT relationships within the C-Suite and measuring IT ROI. Join the conversation on January 29 at 11 a.m. PST on Twitter using the hashtag #DirtyTopics.

 

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Water Will Always Find a Way

Just like water will always find a way through or around any obstacle, so will people find a way around any security measures you seek to implement.
You may think you have thought of the most foolproof method of managing your data, but as soon as you implement it and ride out the first wave of direct (and often blunt) feedback, people will start beavering away on ways to get around your processes.

Anybody who thinks otherwise is only fooling themselves and will be rudely awakened when a security or other serious data breach occurs.

The best way to remedy this and eliminate it as best you can is to create and reinforce an educative program that informs people of the reasons as to why you are having to implement these policies and not just labouring on the pitfalls of not adhering to your security policies.
As time consuming and labour intensive as it sounds, a period of open discussion and feedback sessions will alleviate some of the staff objections prior to drawing up your policies and generate an enormous amount of goodwill.

Everybody appreciates there needs to be some level of security, especially in heavily regulated or security conscious industries but nobody appreciates dictatorship levels of oppression when they are not completely necessary.
Simply saying it’s a disciplinary offence to not adhere to these policies without explaining them thoroughly first or taking an objectionable point of view on board will alienate you from the very people you are trying to protect.

We’ve all been asked by staff across the organisation if they can use third party file sharing services like Dropbox to share data etc. and had to refuse them on security grounds.
We all know they use these services (and you probably do as well) and trying to implement an internal, secure enterprise version of a similar technology is very time consuming to manage and expensive not to mention extremely difficult to secure.

Smaller companies with less advanced infrastructure will often use third party file sharing services as a low cost and logical extension to their infrastructure.
The security risk to their IPR is no less great than larger corporates but they thrive on the nimble and agile gain that using these services gives their businesses.
When new individuals join your organisation from these smaller and more agile business through acquisition or organic growth, they will quickly challenge any seemingly draconian procedures you have in place. They will challenge you that their agility and productivity is being stifled by these procedures with the very valid reason they are often brought in to disrupt your existing business working in precisely the way they need to.

We need to take on board these new types of people and the roles they perform, adapting the necessary rules and procedures to allow them to go about their business rather than stifling them with regulation.
This is challenging and a bit scary but as long as your security is not diluted too far, adapting to incorporate these new roles and working practices will show your willingness to change and adapt and will not go unnoticed across the organisation.
In the new arena of change and disruption, those who adapt will thrive and those that don’t…. Well, you know how that story ends.

This piece has also been posted on:
The Business Value Exchange in my position as CIO ‘Thought Leader’ and Featured Contributor
The Intel IT Peer Network in my position as IT Industry ‘Thought Leader’ and Featured Blogger
Outsource Magazine in my position as IT Industry ‘Thought Leader’ and Featured Columnist

 

 

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Is outsourcing the question or the answer?

Once upon a time, the answer to the question of what are the main benefits of outsourcing was cost savings based on labour arbitrage, but today that response would be superficial and incomplete.

I believe the main benefits of outsourcing are access to scarce skills, expertise and the latest technology, cost reduction, turning capital expenditure into operating expenditure, and the opportunity to concentrate resources on core business objectives.
If you think about outsourcing in this manner, you will not only start to realise areas within your IT organisation that would benefit from adopting it but also ways as a strategic leader you can add further value to your entire organisation by doing so.

The first big error people make when considering outsourcing is looking to resolve a problem without first looking to do so in-house – a problem remains a problem no matter where it sits.
Sensible outsourcing providers will often sniff this out during the RFP or other stages of the bidding process but others may look to take it on, hoping they can fix the issue(s) as a calculated risk whilst trying to win the business (the fact a vendor accepts this huge risk should really start ringing alarm bells for you as you both know there’s an elephant in the room).
Those that don’t take the business (and hopefully this is the majority) will likely make you consider going back and fixing the problem before re-tendering. Those who take it on will only delay the inevitable, leaving you not only with a larger problem downstream but also with the added bonus of a whole heap of complex contractual issues to sort out (which I imagine you will now discover were also not properly agreed or worded up front).
Many take this approach and get their fingers burnt with outsourcing, vowing never to return.
It’s a real shame, as outsourcing done in the right way is an extremely beneficial way to add to the value you provide to your organisation.

The second biggest error people make when considering outsourcing is to engage with and select a vendor by having only had a few live sales meetings/conference calls with a cursory glance over provided case studies. Coupled without ever having visited their operating/service centres to see them in action in a live environment or meet their staff that will be working with your team in person.
You wouldn’t do this if you were hiring permanent staff or running the project in-house, so why do this when exploring outsourcing? It makes no sense.
This often occurs when a company decides to outsource a small project or a portion of it to see if outsourcing works for them in an operational sense.
The vendor is often chosen just on labour arbitrage and due to this the work is often performed in Asia or Eastern Europe.
The ‘project’ is often then left with the vendor with scant and seemingly erratic communication and only poured over in detail once the deliverable is returned with obvious errors.
The end result is the project often has to be redone in-house, blowing the project budget, causing delays and delivering red faces all round.
Outsourcing is again blamed as the enemy with the lack of communication and poor vendor selection/interaction issues being swept conveniently under the carpet.

So, in reflection it may be outsourcing is not for you but you owe it to yourself and your organisation to try everything that can add value to what you deliver.
Outsourcing executed properly can provide real value when opportunities are identified, structured, communicated and managed correctly, so what are you waiting for?

This piece has also been posted on:
The Intel IT Peer Network in my position as IT Industry ‘Thought Leader’ and Featured Blogger
The Business Value Exchange in my position as CIO ‘Thought Leader’ and Featured Contributor
Outsource Magazine in my position as IT Industry ‘Thought Leader’ and Featured Columnist

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Roles and responsibilities of key stakeholders

Key stakeholders for any project typically come from inside your organisation and are normally those who have endorsed or identified the need for project activity. However they could also be external clients or suppliers, as they might be directly affected by the resulting changes of the project.

They need to be identified prior to the project proposal being discussed and be the driving force and sponsor for the project through all stages from development to training, implementation and support.

The key stakeholder is a pivotal role in the success of any project and they have a number of core responsibilities that they must adhere to.

Understanding the business drivers and ensuring that the project fits with the strategy for their area of the business: a fundamental responsibility – the stakeholder must be able to clearly explain the necessity for their project to be taken on before others and prove its strategic merit.

Providing detailed requirements and a financial plan: every project must have these and is doomed to fail if they’re not completed up front.

Committing the necessary resources: Its key to have individuals from the affected areas involved on any project. They can provide you with instant answers and feedback as to how things do or should work. They are the daily operational link to the eventual user base of the project deliverables and I cannot stress enough the importance and usefulness of having them involved. Agile PM methodologies allow you to have quicker bursts of development and a higher pace of deliverable but if you are using traditional project management techniques and don’t have target resources available, you could be wasting a whole heap of time and reputation if your deliverables don’t match what the client wants.

Taking ownership of appropriate deliverables: the stakeholder needs to take ownership of the appropriate deliverables and make sure that they work against a number of key elements such as mirroring the requirements, process compatibility, usability and performance. They must sign off and take ownership of each deliverable, thus allowing the project to proceed on the right track.

Keeping abreast of project progress and cascading information to others who need to know: the stakeholder must not skip project meetings and rely upon others to keep them up to speed. Similarly, they must also keep affected others or teams up to date with frequent progress reports. This is probably the most often reported symptom of failed projects where key stakeholders become disassociated with a project and it starts to drift, stray from the requirements and fall apart. Stakeholders must stay focused and attend all key project meetings.

Establish the training and support requirements: the stakeholder must identify any effected individuals of their projects and establish the necessary training and support requirements. This will be done in harness with the relevant departments but the stakeholder is responsible for it. A project should not end when the development is finished but when it is fully implemented with full training and relevant support models.

Identifying and resolving any project issues and risks, especially those associated with managing change during the transition phase: it’s up to the stakeholder to identify and acknowledge any potential risk and change associated with their project during the proposal stages. This will obviously be discussed with the project team, PMO or legal representatives prior to the project getting a green light.

Communicating throughout the life of the project: I cannot stress enough the need for strong communication. The least successful projects are the ones that are done in isolation, that people forget about until an email gets sent around heralding its imminent implementation. Requirements or processes sometimes change during project development and without having relevant resource or communication with the targeted business areas, a project will quickly lose resonance and relevance. Managing associated change during the transition phase must be done up front or during the life of the project and not when its ready to be implemented as those reticent to change can quickly sour any implementation.

Project closure: in accordance with good project governance, the stakeholder must perform an analysis of the projects delivery against plan, budget and strategic objectives and sign off and accept the project.

This piece has also been posted on my Outsource Magazine column here and on The Business Value Exchange in my position as CIO ‘Thought Leader’.

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Operating Multi-Cultural, Geographically Dispersed Teams

Long before the days of Skype, intranets, and email – teams generally needed to be in the same location in order to work effectively.
Those days are long gone and many of us now work regularly with colleagues based in different cities, countries, and continents with team members in different time zones, speaking different languages, and from different cultures.
Teams can now include many varieties or flavours of working practices. Some members may work in groups of three or more in the same office, while others may work individually in separate offices or at home. You may see some team members regularly, but you may rarely see others or even have not met at all.

Regardless of how people are organised, managing a team that’s geographically dispersed can present big challenges, even for the most experienced bosses. How do you ensure that everyone feels they’re being treated fairly, if you see some team members much more than others? How can you prevent remote team members from feeling isolated? And how do you get all members to buy into the team’s objectives and stay on track?

When selecting people to work in a geographically dispersed team, it throws up the need for individuals with strong qualities such as self-motivation and the ability to work independently rather than those that need constant encouragement. They will need to have exceptional communication skills and be comfortable communicating regularly via Skype or conference call. Finally, and as with almost every hire you make, they need to be results-driven and comfortable being assessed using KPIs.
Reward performance fairly, consistently and appropriately across the group, making sure workers in remote offices feel as valued and rewarded as those in the same location as you.

The key for me with leading a geographically dispersed team is that it’s essential for members to unite around a common purpose – everyone must agree to the team’s strategic objectives and goals.
Breaking down your strategy and showing where each individual and team contributes to delivering it is an excellent and powerful way to achieve this. This “roadmap” for your team ensures that everyone is focused on what the whole IT organisation needs to deliver and how they enact within it.
From breaking down your strategy to the team or individual level, you can clearly define everyone’s roles and responsibilities, identify key resources, and decide how the team operates. This can then be used to set the relative goals and objectives that each individual can be assessed by.

You MUST create and operate a strong communications strategy, especially if your team members are in different time zones and speak different languages.
It is easy to misunderstand a message or directive if you’re being communicated with in a language that is not your mother tongue, so it’s imperative that you follow up as often as you can across your team(s) and make sure everyone understands and is clear on what you’re trying to achieve. Good meeting practice with clear agendas and well-written minutes should help allay any miscommunication.

It’s easy when managing geographically dispersed teams to not realise the morale of individuals is being effected, as due to the lack of daily contact you won’t be able to see their body language or detect any slight deviations in attitude.
It’s easy for individuals to think that your behaviour or lack of contact is a direct slight on their performance or lack of meaning to the cause.
They know you’re busy but be careful when communicating via email that your emails aren’t too abrupt or short, especially as they may be well be picked up and read differently in a time zone where they can’t instantly communicate with you to discuss or clarify the underlying tone. Also, make a rule for yourself that you don’t miss more than one team conference or video call in a row.

Don’t lose sight of the need to be personable and approachable to anybody no matter of their location or position, as there is more to leading geographically dispersed teams than just sitting in on conference calls or throwing out the option to email you if there’s an issue.

Trust me, people will really appreciate you just picking up the phone or making regular visits and hosting a team meal or evening drink – it helps to break down barriers and shows people that they are part of the larger team despite the size or location of their team.

Finally, its important to promote team bonding and if you can (budget permitting) get the whole team together at least once a year even if only for a couple of days or at a key location per region depending on size.
Make these events informative and a forum for creativity and discussion but don’t forget to add in a bit of fun through some social activities.

As well as this, look at setting up some inexpensive webcams for team members to Skype each other and an Intranet team page or forum where individuals can input suggestions or throw ideas around.
Tools such as Yammer, Chatter and Messenger can also allow constant contact and are great as an instant communication channel as they allow you to do things such as see that somebody in a remote location is available and crossing over on your time zone be they working late or coming in early.

This piece has also been posted on my Outsource Magazine column at http://dlvr.it/3wPhcn and here on The Business Value Exchange in my position as CIO ‘Thought Leader’.

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