“ Getting IT Right” Article by Charlie S. Feld and Donna B. Stoddard, HBR, Feb 2004.
Summary by Alissa Crescimano
Key Message: Given its early adolescent stage in the business world, the field of IT is still misunderstood and not closely tied to the business.In order to execute IT effectively, there are three interdependent, interrelated, and universally applicable principles that must be followed.And, it is top management’s responsibility to understand and help apply them.
The Three Principles to Execute IT Effectively (also called “Gears”)
.A Long-Term IT Renewal Plan
Given that IT changes faster and more than any other area, IT benefits most from a long-term, disciplined, strategic view, and a square focus on achieving the company’s most fundamental goals.
Ex: Frito-Lay’s fast growth lead to a need to reconstruct its company, centralizing purchasing, manufacturing, distribution, accounting, and R&D, while decentralizing sales and marketing. This allowed it to enjoy the benefits of both worlds – leverage of a national powerhouse with the local resources that gave it speed and agility.
A Unifying Platform
IT systems should be simplified.
The ideal is an IT organization that speaks a common language, operates against a simple and well-understood set of principles, and has an architecture that includes a common set of databases.
Ex: Delta built a new set of software, or middleware, to connect a common infrastructure with every application.This allowed Delta to link all 30 different IT platforms so they could communicate with one another easily.This also allowed Delta to update or replace applications as needed without taking the entire system down.
A High Performance IT Culture
Without a high-performance IT organization in place, a messy IT business will persist.
Companies must establish a new and cohesive culture with a clear-cut set of rules and a solid performance-management and feedback system.
The people in a high-performance organization don’t feel different from other corporate citizens; in fact, they are business-savvy leaders in their own right.
Ex: The merge of Burlington Northern and Sante Fe Railroads led to the development of the largest integrated, real-time rail information system in the world.But the issue wasn’t technology, but rather the need for a cohesive culture.How was the culture changed? Through the (1) Establishment of an accountable IT leadership team, (2) Set performance and bonus targets.Targets based on delivering results, leadership competencies, and the new cultural behaviors, and (3) Establishment of a rhythm – to control the flow, timing, and pace of the work.
Like interlocking gears, these principles work together and must be consistently applied.If they mesh well, each reinforces the others.If one is disengaged or turns in the wrong direction, the whole machine starts working against itself or grinds to a halt.
The “gears” become even more critical when you bring outsourcing and offshoring into the picture, because management complexity rises.
In most cases, the issues above are not driven by technology, but rather the personal, departmental, management, and cultural changes that need to be made.The role of IT needs to be viewed in a new light.
In operating a multi-company workforce, it takes extraordinary leadership to create the esprit de corp (i.e. morale of the group) required for high performance.
And the bonus: Once organizations get IT right, they will get much more for far less.
Article by Charlie S. Feld and Donna B. Stoddard, HBR, Feb 2004.
Summary by Alissa Crescimano
Key Message: Given its early adolescent stage in the business world, the field of IT is still misunderstood and not closely tied to the business. In order to execute IT effectively, there are three interdependent, interrelated, and universally applicable principles that must be followed. And, it is top management’s responsibility to understand and help apply them.
The Three Principles to Execute IT Effectively (also called “Gears”)
Like interlocking gears, these principles work together and must be consistently applied. If they mesh well, each reinforces the others. If one is disengaged or turns in the wrong direction, the whole machine starts working against itself or grinds to a halt.
The “gears” become even more critical when you bring outsourcing and offshoring into the picture, because management complexity rises.
In most cases, the issues above are not driven by technology, but rather the personal, departmental, management, and cultural changes that need to be made. The role of IT needs to be viewed in a new light.
In operating a multi-company workforce, it takes extraordinary leadership to create the esprit de corp (i.e. morale of the group) required for high performance.
And the bonus: Once organizations get IT right, they will get much more for far less.