Posts tagged as:

cost

In my previous post I described Shadow IT and the problems it causes. In this post I’ll describe some approaches that the formal IT organization can take to deal with Shadow IT, and I’ll give you some recommendations. 5 Approaches to Dealing with Shadow IT Most formal IT organizations take one of five different approaches [...]

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Shadow IT is one of the names for the Information Technology work and expense that’s done outside of the control of the formal IT organization and outside the formal IT budget. It’s more prevalent in some companies than in others, and it often changes over time within a company. I’ve found that the amount of [...]

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A lot of people in the United States are against what they call “big government.” Yet most of those people are in favor of government services that they consider essential. In many cases, the concern about big government is not actually a concern about the size of government — it’s more a concern about a [...]

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In 1986 a book called “The E-Myth” attracted a lot of attention. The “E” in “E-Myth” refers to entrepreneur, and according to the myth in Michael Gerber‘s book, if you’re good at a particular skill then you’ll do well starting a business which requires that skill. So, for example, if you’re a good cook then you’ll [...]

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If you’ve traveled much, then you’ve probably noticed that the more expensive, “better” hotels charge for WiFi while the same service is often included in the room rate at less expensive hotels.  This phenomenon probably seems odd to you — isn’t this the opposite of what you should expect? In this article I’ll provide an [...]

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My friend Derek Cheshire made an interesting observation yesterday: Tell me if I’m being stupid but after reading about the Greek austerity measures I do wonder why we have to try and make hundreds of public sector employees redundant. Why not just trim pay by say 10%? At least there would be more people with [...]

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Here’s the way most people justify automation of a manual process: they replace a high variable labor cost with a relatively fixed system cost.  I’ll illustrate using graphs, then show how cloud computing fits into the picture. Before: A Manual Labor-Intensive Process Before any automation, the financials for a manual process look like this: With [...]

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I wrote a book on this subject but it focused on the management and leadership aspects of IT — not the technical stuff. Now I’m looking at doing a two-day class on IT for business executives. I’ll include the stuff from my book, but I’m trying to identify the technical topics that I should also [...]

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I lived in Boston during the height of the Bobby Orr days, and I got caught up in the enthusiasm that Boston felt for their Bruins. I had never seen ice hockey before I moved to Boston, and I learned the game by watching the Bruins win the Stanley Cup. One of the intriguing tactics [...]

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Many years ago my sister Mary taught me a valuable lesson. At the time she and her husband lived in a very small apartment. But each time I visited her I was amazed by how neat everything was. There were no overflowing bookshelves, no overstuffed closets and pantries, and none of the usual clutter of [...]

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Note: This article is intended for a business audience.  For a technical explanation of cloud computing, see the sidebar below the business article. To the non-technical among us, “cloud computing” may sound like something vague and amorphous. After all, it’s a cloud, right? So that means it’s something that’s insubstantial, floating in the sky. If [...]

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Many years ago I did some work at a newly built manufacturing plant in Phoenix. The new plant was having trouble with its air conditioning system  — the administrative offices were too cold and the manufacturing shop floor was too hot. While I was there it was discovered that a mistake had been made during [...]

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You’re trying to get a new project approved, and you’re having trouble. Or you’re trying to get an employee to do things your way, and the employee keeps fighting you. Both these situations are disagreements, and the process to deal with them is similar. Why Do We Disagree? Let’s start with individual disagreements. When two [...]

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A lot of companies routinely use ROI (Return on Investment) to compare multiple projects competing for limited investment resource. But what do these same companies use during a bad economy when they’re trying to figure out where to make cuts? How do you compare multiple opportunities for cost cutting? Recently I moderated a group discussion [...]

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How to Buy an IT Product

by Harwell on February 10, 2009 · 1 comment

in IT,Management,Projects

Suppose your IT organization is in the market for a new IT product (or service, but I’ll use the word “product” here to simplify the discussion). It could be a computer, network device or other hardware item, or it could be a software package or SaaS (software as a service). Regardless of what you’re looking [...]

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Two months ago I did an article on span of control, pointing out some of the variables that make an IT manager’s span of control so unlikely to conform to any consultant-recommended norm. I received a number of positive emails about the article, but one email in particular asked about a different kind of span [...]

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Last month I got a lot of positive feedback about the timeliness of my newsletter topic, “The Right Span of Control Isn’t a Number,” so this month I’ve written another newsletter article dealing with today’s problems. In our current economy there is a high likelihood that you’ve been asked to “tighten your belt” and cut [...]

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In my June, 2007 newsletter article I talked about how to organize IT, but I didn’t address one of the questions that keeps coming up during a bad economic climate: how do we deal with executives who want to cut the number of IT managers by increasing the span of control for each manager? Span of [...]

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One of my newsletter readers sent me an interesting question: “I was wondering if you have insights on the attitude of managers on the business side towards the re-alignment of IT. I can imagine that managers at the business side tend to resist giving up (overly) customized IT, since the short-term performance of their individual [...]

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There are some jobs where achievement is the absence – or maybe the avoidance – of failure. Driving a bus is one of those jobs; if you make it through the day without an accident, without hurting or annoying anyone, and without falling behind your schedule, then you’re successful. There are other jobs where carrying [...]

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I don’t usually like to talk about stereotypes, but it occurred to me that the stereotype about men not asking for directions applies equally well to CIOs of both genders. So let me talk about why men don’t ask for directions, and I think we’ll find some lessons that will apply to senior executives as [...]

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The world is full of cycles. There are stock market highs and lows, periods of good weather and bad weather, even apparent cycles of good luck and bad luck. Many of the people-related cycles are caused by basic human nature. The bad part of a cycle starts when we hear bad things about a particular [...]

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A few weeks ago there was an article in an Atlanta newspaper about George Kelling, the author of the book, Fixing Broken Windows: Restoring Order and Reducing Crime in Our Communities. Dr. Kelling has been called “the man who helped Rudy Giuliani turn around New York City” by refocusing some of the city’s priorities. As [...]

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In Stephen Covey’s latest book, The Eighth Habit: from Effectiveness to Greatness, he includes the following Q&A: Q: “In your experience, what is the best question to ask people when you hire them?” A: “In my experience, the best question is to say ‘Starting with your earliest memory, what did you really like doing and [...]

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If you haven’t been involved in an acquisition, then wait a few months; it eventually happens to all of us. In preparation for that event, it’s useful to get an understanding of why companies do acquisitions, so that you can anticipate the effect that an acquisition will have on you. I’ve been lucky enough to [...]

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In my previous newsletter I explained why ROI isn’t working in most businesses. Based on comments I received from readers, I want to quickly point out that I don’t believe that the “game players” I mentioned are bad people, in spite of my use of the word “crime” in the article. I believe that everyone [...]

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ROI (Return on Investment) is the most common and popular method for project ranking, both in IT and elsewhere. But ROI isn’t working in most companies, and as a result, businesses are making bad project decisions. In this article I’ll explain why ROI isn’t working. Then in next month’s newsletter I’ll tell you how you [...]

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Last month I had the unique opportunity to help a large university plan its future curricula for its undergraduate and graduate degrees in computer information systems. The university recognizes that Information Technology is changing, and wants to make sure that its students are being prepared for the real world. To this end the university has [...]

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We live in a non-linear world but it’s funny how we keep forgetting that fact. Eating twice as much for dinner won’t make up for missing lunch. A runner who can do a 4 minute mile can’t do 10 miles in 40 minutes. If it takes two painters one day to paint a room, then [...]

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I’ve got a speaking engagement in a month or so where I’m going to talk about “How to Reduce Risk in IT Projects.” In thinking about what I want to say in that presentation, it occurred to me that “risk” is an interesting word. We define the word as the uncertainty of bad things happening, [...]

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The subject of outsourcing is in the news a lot lately, particularly when the outsourcing is done to a location outside your country. Based on my experience, a company should consider outsourcing when one of the following criteria is met: The vendor can do the job better than your company, at a reasonable cost. The [...]

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3 Keys to Service Success

by Harwell on October 14, 2003

in Management

What do capability, motivation, and expectations have in common? All three are essential for a successful service organization, whether that organization is in Information Technology or in any other field. Capability Let’s use a help desk as an example. For such a service organization, capability includes the basic skills necessary to be able to answer [...]

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Like many of you, I travel a lot. Some of the travel requires me to wear business suits, and I’ve had to learn how to pack a suit coat so that it’s wearable when I unpack it. Years ago I learned the secret, but it recently occurred to me that the secret of packing a [...]

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