A featured contribution from Leadership Perspectives, a curated forum for enterprise technology leaders, nominated by our subscribers and vetted by the CIOApplications Editorial Board.
STRIKE
IT Cost Optimization
Of course, it would be nicer if everyone spoke the same language and had the same goals. An IT leader focused on his five-year plan may be a visionary, but if the company struggles to make payroll, there may be some urgency in results. Conversely, the executive team is focused on next month's EBITDA, and trying to cut their way to prosperity is no recipe for long-term success.
Balance, my friends, is the key. Look for fat and waste, then aggressively cut it from your organization, but do it like a brain surgeon, unlike the big bad one in an 80's slasher flick. Cut too deep and you need more room for error. Cut too shallow and you are carrying dead weight. Obvious, right? Then why do so many organizations need help with managing IT services?
I hypothesize that a lack of communication between tech and business people causes the problem. We don't always speak the same language. While techies get criticized for using jargon to an extreme, explaining technology or business without jargon is often challenging. We, as technologists, use words like scrum, hypervisor, multi-cloud, and such. They have terms like time to market, inventory turn, net profit, and gross profit.
The worst part is the differing perspectives and blind spots. Techies hold themselves aloof and apart from the business as if the same company didn't pay them all. Business people consider techies a cost that is a needed evil, not an asset to help the company excel. The us vs. them friction wastes time, energy, and resources better spent on something that generates profit.
Business leaders that get the similarities and celebrate the differences are the strong leaders that make both sides feel heard and valued.
It sounds terrific on paper, but how do we do this? No single answer fits all organizations. There is no step-by-step process that will unite the organization and have everyone join arms and sing together. If you find one, please let me know.
While a large part of that ideal is philosophical, there are some practical things we can do along the lines of cutting vs. building. Most of these things start with questioning, "Why?"
‘This process takes six hours to complete.’ Why? Or ‘We spend 20 percent of our IT budget on network connections.’ Why?
Business leaders that get the similarities and celebrate the differences are the strong leaders that make both sides feel heard and valued
Ok, so it made sense then. Does it make sense now? That's how you find waste. Find a faster, cleaner, cheaper way to achieve the same goal.
Outsourcing is a dirty word in some circles, and yes, it usually means people lose jobs. That part is sad at first glance. On the other hand, maybe the displaced were stuck in a rut and could not grow in that position. Forcing them from the nest may be the best tough love you can give them.
From the business standpoint, you can free up your best people from doing menial things. Now they have time to do something that helps the company innovate and move ahead. If a process or thing does not differentiate you from the competition, pay someone else to do it.
Let's sum it up:
• Cut waste but don't cut into lean meat.
• Outsource when it makes sense.
• Always ask, "Why"?
