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Information Technology Management

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Information Technology Management

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  1. Information Technology Management M.S., Leadership and Strategic Management LSMP5009 / OMHR5019 Manhattanville College Summer Session 2003 Jeff Relkin Director, Information Technology MBIA Insurance Corporation 113 King Street Armonk, NY 10504 914-765-3063 jeff.relkin@mbia.com

  2. Out of the box thinking exercise

  3. Out of the box thinking exercise

  4. Out of the box thinking exercise

  5. Does IT provide value? What would we like to know about Information Technology? • How well does IT align with business strategy? • How is the role of IT defined in the organization? • Is IT customer focused? • Is the organization applying IT to enhance competitiveness? • How good is the IT infrastructure? • What’s the CIO worried about, and why? • What should we know about current and emerging technologies? • How should IT be governed? • Are there any special challenges to managing IT? • How is data used as a strategic asset? What else would you like to know? LSMP5009 / OMHR5019

  6. Course outline • June 21 & 22 • Managing the IT business function • IT as a synergistic business partner • Components of IT • IT’s role in reengineering the business • Measuring the value provided by IT • July 12 & 13 • What does IT look like today • What will IT look like in the future • July 26 & 27 • Applying what we’ve learned to your own organizations LSMP5009 / OMHR5019

  7. Course mission and objectives statement • Open a window into the minds of professional IT practitioners • Understand the dynamics of the partnership between IT and the business • Qualify the strategic value of information and technology • Demystify technology and upcoming technological trends and advances • Determine how IT and business leaders can better achieve corporate goals and maximize stakeholder value “Never be afraid to try something new. Remember, amateurs built the Ark but professionals built the Titanic.” - Dave Barry LSMP5009 / OMHR5019

  8. Course requirements • Class participation - 40% • Be prepared to discuss readings and cases • Bring in articles or topics of interest relevant to the course material for additional discussion • In-class group presentation (July 26 and 27) - 60% • Form teams, select a company, and elect a team leader • Interview your company’s technical and business managers • Content is more important than form • You may submit a written report (but that’s optional) • Grading policy • Combines your individual participation with the group project Now…let’s get to know each other! LSMP5009 / OMHR5019

  9. Section 1 Issues in IT management Managing the IT function LSMP5009 / OMHR5019

  10. Managing IT professionals is all about trust LSMP5009 / OMHR5019

  11. More than 20% of IT pros had significant problems getting away from the office while on their last vacation • IT pros often consider this part of their job • Many seem willing to trade some income for more vacation • They often have trouble taking the time they do have LSMP5009 / OMHR5019 Source: TECHREPUBLIC.COM

  12. IT pros believe the sacrifice is often less important than the perception that management doesn’t appreciate their efforts There are few complaints about having to carry such devices on vacation; it is viewed as the price you pay for going on vacation LSMP5009 / OMHR5019 Source: TECHREPUBLIC.COM

  13. IT pros like working from home because of the lack of meetings and other distractions; they feel more productive Looking ahead, they believe that future technology will make them even more productive, making more time for friends and family LSMP5009 / OMHR5019 Source: TECHREPUBLIC.COM

  14. IT pros perceive their parents could put their jobs behind them more easily • They also believe they like their jobs more than their folks did While optimistic about the future use of technology, IT pros are more skeptical about the current value of technology in reducing workloads LSMP5009 / OMHR5019 Source: TECHREPUBLIC.COM

  15. Many technology workers have never worked in a slowing economy • Most have never known anything other than expanding IT budgets This poll reflects past decisions — and may refer to an absolute decline or a reduction in the rate of growth LSMP5009 / OMHR5019 Source: TECHREPUBLIC.COM

  16. The bursting of the tech bubble has changed things for IT pros LSMP5009 / OMHR5019

  17. What motivates IT pros? The work The work place • Achievement • Opportunity to learn • Challenge • Intellectual stimulation • Interesting technology • Professional growth • Decision making • Recognition • Teamwork • Continuous learning • Espirit de corps • Meaning • Culture • Technology adoption • Enterprise reputation • Industry position • Training • Compensation • Employability • Flexibility • Policies/administration • Working conditions • Interpersonal relations • Management quality LSMP5009 / OMHR5019

  18. Key motivational factors (job content related) Relationship to IT Factor Earning a certification; mastering a new technology or completing a new application Achievement Recognition Being singled out for a job well done Working for an enterprise that continues to adopt new technology and offers opportunities for continuous learning and training Interesting/challenging work/variety Responsibility Being permitted to manage projects and processes Advancement Having opportunities for growth and development Having the flexibility (even being encouraged) to move around within the department and organization Mobility/career path Based on the work of Frederick Hertzberg LSMP5009 / OMHR5019

  19. Key maintenance factors (job content related) Factor Relationship to IT Working for a company that has a leading market position and vision Company position Getting reimbursed for continuing education; having flexible schedules; respecting and admiring management and peers Company policy Having strong leaders and respected role models within IT Interpersonal relationships Salary and working conditions Receiving competitive pay and flextime; having a pleasant office Receiving market induced goodies such as bonuses for individuals who stay until the completion of a defined term project (e.g., Y2K remediation) Other perks LSMP5009 / OMHR5019

  20. A model for employee retention Characteristics Grateful Loyal Challenged Appreciated Secure Productive Employee Characteristics Unstimulated Under-compensated Unsure of organization Restless 2 1 Likely to Leave Likely to Stay 4 3 Characteristics Risk-adverse “Velvet Handcuffs” Fatalistic Moonlighting? Characteristics Bitter Cynical Betrayed Apathetic Unproductive Employee LSMP5009 / OMHR5019 Source: Gartner Group

  21. Challenging work assignments Favorable work environment Tuition/training reimbursement Quality supervision/leadership Training programs Support for career/family values Everyday casual 401(k) matching Career development opportunities Cross-functional assignments Challenging work assignments Favorable work environment Flextime Stock options Additional vacation Support for career/family values Everyday casual Quality supervision/leadership Visionary technical leadership Cross-functional assignments Tuition/training reimbursement 401(k) matching What kind of retention techniques work best with IT pros? Ranked by prevalence Ranked by effectiveness LSMP5009 / OMHR5019

  22. Workload - who’s got it worse? The same question asked of CIO’s and other IT executives: <40 hours 14% 41-50 40% 51-60 29% 61-70 10% 70+ hours 7% LSMP5009 / OMHR5019 Source: TECHREPUBLIC.COM

  23. Business competencies based on business knowledge/awareness Behavioral competencies based on personal attitudes and characteristics Technology competencies based on technology skills Skills Knowledge Attributes Relative ease of acquisition Easy Difficult IT competencies can be divided into technical, business, and behavioral components LSMP5009 / OMHR5019 Source: Gartner Group

  24. Understanding existing systems and technology Designing and developing applications Applying procedures, tools and methods Integrating systems Designing technical architecture Understanding emerging technologies The IT competency model Business Behavioral Technical • Understanding business practices and approaches • Understanding business organization, politics and culture • Behaving commercially • Understanding and analyzing the competitive situation • Managing projects • Managing change in the business from IT applications • Planning, prioritizing and administering work • Communicating / listening and gathering information • Focusing on customers • Leading, inspiring and building trust • Thinking creatively and innovating • Focusing on results • Thinking strategically • Coaching, delegating and developing • Building relationships/ team working • Influencing and persuading • Principled negotiating • Resolving conflicts and problems • Being adaptable LSMP5009 / OMHR5019 Source: Gartner Group

  25. 4. Coach Serves as positive role model 3. Advanced Generates original ideas 2. Proficient Can use tools and methods 1. Basic Builds on the ideas of others Four levels of performance for each competency Performance level LSMP5009 / OMHR5019 Source: Gartner Group

  26. Benefits of a compelling work place • Retain good employees • Attract new employees • Keep customer service high • Build a unifying culture • Strengthen corporate and brand identity • Encourage top performance • Infuse work with respect • Reward employees’ contributions • Improve profitability LSMP5009 / OMHR5019

  27. Building a compelling place to work by providing the opportunity to participate Participatory Enterprise Levers of Change Team oriented goals Mentoring Projects Job Rotation Levers of Change Self directed teams Matched needs/desires Shared decision Passive Employee Active Employee Levers of Change Choice assignments Visibility New leaders Internal spinoffs Levers of Change Process redesign New leaders External catalysts Urgency Non-Participatory Enterprise LSMP5009 / OMHR5019 Source: Gartner Group

  28. Defined as: Team development Referral behavior Tenure intention Shaping commitment Workforce Commitment Driven by: • Organizational direction • Management recognition of personal and family life • Job satisfaction • Recognition and reward • Growth opportunity • Work environment • Work/life balance LSMP5009 / OMHR5019

  29. What makes IT pros stay with a company? • Peer based commitment: the impression that a particular enterprise’s brand or name recognition generates • Economics based commitment: the economic imperatives of remaining with an enterprise (IPO’s, stock splits, vesting, retention bonuses, etc.) • Values based commitment: the match between a professional’s self-image and the enterprise’s image LSMP5009 / OMHR5019

  30. Building the future in the present Future state Agility Information integration System view Service excellence Customer focus Effectiveness layered atop efficiency Enterprises can’t get here ... Current state Stability Discrete skills Platform view Reactive service Technology focus Efficiency … if they continue to recruit, reward, and retain from here LSMP5009 / OMHR5019

  31. Command and control Individually focused work Influence through organization Managed flow of information Managers as experts Job security Work = income Employer defined career planning Clear boundaries Inward looking perspective Relationships by proximity Active leadership Collaborative project work Influence through communities Unstructured flow of information Knowledge workers as experts Employability Work = enrichment and income Individually designed experience portfolio No boundaries Outward looking perspective Relationships by network The changing psychology of the workplace Traditional psychology: New millenium psychology: LSMP5009 / OMHR5019

  32. The workplace is becoming more agile • Work is becoming more collaborative and team based • Workers are increasingly becoming members of virtual teams crossing boundaries of time, space, and culture • Trend will continue as enterprises restrict travel, disperse critical operations, and implement collaborative computing techniques • The workforce is changing relative to expectations about work and relationships between employees, employers, and colleagues • Workers increasingly seek meaning and purpose • Successful workplaces facilitate and support community and collaboration, flexibility and choice LSMP5009 / OMHR5019

  33. What does the agile workplace look like? • The connected economy has resulted in a shift in power from large, monolithic organizations to employees as consumers • New leadership styles…inspirational, supportive, facilitative…rather than autocratic and directive • A physical and virtual workplace that is egalitarian, adaptive, and socially engaging • A shift in focus from places and assets to individuals and groups • One size does not fit all • Workplace boundaries such as space, time, and culture are increasingly permeable • Work is supported anytime, anywhere LSMP5009 / OMHR5019

  34. How should organizations respond to this paradigm shift? • Ownership of workplace services and environments must be a shared accountability • Multidisciplined planning and management systems • Integrated HR, IT, and facilities domains • IT must adapt to enterprise needs and user requirements • Portal technology • Interoperability • Collaborative applications • Technology mediated virtual environments • Integrate knowledge management, process and work management, and collaboration LSMP5009 / OMHR5019

  35. How should organizations respond to this paradigm shift? • Implement integrative costing models to support integrative workplace management organizations and systems • Fragmented budgets are suboptimal • Enterprise total cost of ownership models • More astute investment and cost allocation • Sharpened value proposition for external services • Change management must become an enterprise core competence • Challenge management roles • Challenge entitlements and perquisites • Challenge notions of hierarchy and authority • Challenge the essence of work itself LSMP5009 / OMHR5019

  36. What characteristics must knowledge workers possess? Unpredictable • Creativity, imagination • Competence • Grace • Confidence • High sensing • Collaboration • Imagination • Confidence • Strong training and learning skills • Resilience • Self-management Situations • Listening • Persistence • Sensing • Tolerance for teaching • Reliability • Willingness to work • High coordination • Reliability • Persistence • Time management • Competence Routine Explicit Knowledge Tacit LSMP5009 / OMHR5019

  37. But there’s a disconnect Knowledge workers regularly seek new situations and learning experiences that will increase their value and render them more employable Enterprises continually strive for operational efficiencies It is in knowledge workers’ best interests to seek and excel in unpredictable situations It is in enterprises’ best interests to turn unpredictable situations into repeatable processes, routines, and templates Enterprises must strike a balance between operational efficiency and unpredictable creativity, and must accommodate the differences between people working at the cusp of creativity and those who work in more repeatable areas of work LSMP5009 / OMHR5019

  38. The spectrum of knowledge work • Task based • Explicit operational processes • Pre-engineered routines • Well defined responses and administrative activities • Skill based • Blends explicit skill and tacit know-how • Domains of expertise that are well defined, demonstrable, and conducive to hands on training • Contribution is through speed and proficiency • Innovation focused • Tacit knowledge, high creativity • Intense collaboration, high improvisation • Extensive role versatility LSMP5009 / OMHR5019

  39. Drivers of superior knowledge worker performance • Competence • Individual competencies - behavioral, business, technical • Elevates economic impact and value of role • Traits that characterize superior performance of individuals as well as enterprises • Collaboration • More than cooperation and more than coordination • Value of the whole greater than the value of the sum of the individual parts • Strength comes from diverse opinions, empowered people, strong sense of purpose, enlightened leadership • Trust • Authority and permission to make decisions is required without clearance from higher levels of management LSMP5009 / OMHR5019

  40. Inhibitors of superior knowledge worker performance • Mismatched roles - when core role components don’t match the individual, value and work impact suffers • Weak support - inappropriate or inadequate support leads to ineffective work • Lack of optimization - work must be redesigned and redistributed so contributions can be made at the right time and for the right reason • Lack of coordination - work must converge around a unified objective The greater the number of tasks and activities that are irrelevant to the core elements of knowledge work, the lower the individual’s performance potential and the lower the impact and value of the work itself LSMP5009 / OMHR5019

  41. Leadership imperatives for knowledge work • Articulate a shared purpose • Link customer and stakeholder value • Create a roadmap for achieving • Develop an information strategy as a foundation of strategic planning integrating IT and business plans • Create an enterprise knowledge culture • Facilitate and celebrate creativity, learning, sharing of ideas, and mutual respect • Cultural foundation must be based on trust • Knowledge is not a competitive weapon in a search for personal power and success LSMP5009 / OMHR5019

  42. Leadership imperatives for knowledge work • Provide tools and processes • Support the creation, capture, delivery, and reuse of information, ideas and knowledge • Align processes and tools with knowledge objectives and culture • Minimize administrative workload • Align objectives • Align individuals with team and with enterprise • Avoid contradiction • Minimize bureaucracy LSMP5009 / OMHR5019

  43. Fostering a learning culture • Have we explicitly assigned a department with responsibility for learning development and process improvement? • Do people feel they can make mistakes without being reprimanded? • Are we too risk averse to foster learning? • Is our organization, division, or team able to step outside day to day operations to assess what is working and what is not? • Do our people face internal competition for status, rewards, pay, bonuses, and promotions? • Are performance metrics overly complex? • Do performance metrics focus on results counterproductive to learning organizations (e.g., short term profits)? • Do we equip people with systems to help them build and apply knowledge and share it with others in the enterprise? LSMP5009 / OMHR5019

  44. Mentoring programs can help • What is mentoring? • A formal relationship between a mentor and a protégé • The mentor and the protégé set clearly defined goals • The mentor helps the protégé develop skills to reach those goals LSMP5009 / OMHR5019

  45. Company benefits Mentor benefits Protege benefits Recent changes in approach to mentoring • Mentors are no longer necessarily older or more senior • The relationship is less power-related • It is less about seniority and teaching • It is more about sharing and development • It focuses on all-around growth LSMP5009 / OMHR5019

  46. Helps recruitment Improves employee retention Helps overcome learning curves Helps manage organizational change (such as mergers, acquisitions, downsizing) Promotes highflyers Develops underperformers Bridges competency gaps Rejuvenates midcareer managers Converts training to results Facilitates internal hiring and transfers Encourages personal individual growth Increases the representation of minority interests (diversity) Develops current managers Helps new employees obtain formal qualifications Benefits of mentoring for the company LSMP5009 / OMHR5019

  47. Benefits of mentoring for the mentor • Broadened sense of responsibility • Sense of being trusted by the company • Challenge of advising rather than directing • Chance to pay back mentors of their own • Opportunity to learn from protégé • Satisfaction of seeing someone grow LSMP5009 / OMHR5019

  48. Benefits of mentoring for the protege • Faster learning • Chance to observe and emulate role models • Opportunities to show skills • Increased self-confidence • Nonjudgmental sounding board LSMP5009 / OMHR5019

  49. Implementing a mentoring program • No easy boilerplate formula • Must be customized to match the needs of the company and the individual • Fine tune to departmental needs over time • Must have the support of senior management • Determine if mentoring will work by conducting a needs assessment • Don’t use mentoring for remedial work or discipline • Establish mentoring programs for individuals who want to grow and develop • Keep mentoring strictly voluntary • Avoid mentoring if the organization is going through difficult times • Talk at length with the potential mentors and protégés to see if they want such a program and have time to devote LSMP5009 / OMHR5019

  50. Implementing a mentoring program • Getting started • Set very specific development goals • Identify learning activities and projects • Design program materials: checklists, worksheets, tips, tricks, online training, books • Check off topics as protégé completes them • Mandate face-to-face time • Give praise • Ask questions • Match mentor skills to protégé needs • Managers mentor managers • Skilled technology workers mentor new workers in field of expertise • Focus on skills, knowledge, and attitudes protégé needs to develop LSMP5009 / OMHR5019