MIS 524 1

Chapter 8

Organizing and Leading the IT Function

(Herding Cats!)

MIS 524 2

AGENDA

Introduction: What’s the Fuss? Organizing and Evolving IT User Dominance Models Centralized IT Models IT Policy Making The Pseudo-IT Dept.

MIS 524 3

Introduction: What’s the Fuss?

IT Function

Pressure to Innovate /

Pressure to Avoid Risk

Pressure to Respond to

Users /

Pressure to Respond to

IT Needs

Short-term needs, business

concerns

Standardization, architecture, maintenance

Strategic impact of IT,

opportunities

Control, lowering risk, core business concerns

MIS 524 4

The USER view

The IT

View

The Tension Dimensions

User Dominance IT Dominance

Co

ntr

ol E

mp

has

is

In

no

vati

on

Em

ph

asis

User/Control

User/Innovation IT/Innovation

IT/Control

MIS 524 5

Basic Question

What shall be the relationship between the IT “function” and the rest of the business? Service organization? Captive work unit? Equal partner? Strategic partner? Outsourced entity?

MIS 524 6

A Bit of History – Part 1

1960s-1970sAs IS

became more

proficient, other depts. required IS

services

1950s-1960s IS Depts. began as task

groups in Accounting 1970s-1980s

IS developed specialized services,

liaising with user

departments who acquired

equipment and their own

specialist analysts

MIS 524 7

The Historical Imperative

1980s-1990s

In time, IS came to have

its own agenda, clients,

operating procedures, budgets and acted like a business

1990s-2000s

As IS acted like a business, it was

seen as a supplier rather than a partner.

Voila: OUTSOURCING

Don’t forget ASPs

MIS 524 8

Users are the essential players

IT is the essential player

The Essential Tensions

Expansion, Innovation,

Experimentation

Control, Standardization

MIS 524 9

Organizing and Evolving IT

Environmentalpressures

Corporateculture

TechnologyCharacteristics

IndividualPersonalities

InnovationOrientation

and Locus of

Dominance

MIS 524 10

User Dominance Models

Drivers Pent up User Demand Need for Staff Flexibility IT Services Competition User Self-efficacy (need to control destiny) Organizational Culture/Structure/Strategy

Implications

MIS 524 11

IT’s Worst Nightmare

Unique focus on problems, not opportunitiesSystem proliferationUnmaintainability, lack of standardsSystem degradation in performancePoor documentation, lack of specsLittle coordinationDuplicationCosts out of controlCatastrophic error

MIS 524 12

Centralized IT Models

Drivers Staff Professionalism Standard Setting Maintainability Vision Feasibility Determination/Analytical Judgment Corporate Data Management

Implications

MIS 524 13

Users’ Paranoia

Maintenance costs high, no innovationRestrictive requirements for new systemsParalysis by AnalysisMonopoly by IT groupEquipment and technology concerns dominateIT is arrogant and out of controlUser needs are ignoredCompletely irrelevant ITCatastrophic decisions

MIS 524 14

IT Policy Making

A Balanced perspectiveBoth IT and users have responsibilitiesResponsibilities are based on mutual

respect for skills and needs

MIS 524 15

IT Responsibilities Development, management of architectural plan Process to establish, maintain and evolve company

standards Procedures for outsourcing and maintaining standards Inventory of systems Manage IT staff Make IT understandable through internal marketing Assist RFP process by developing standards Identify and maintain relationships with preferred system

suppliers Educate users Procedures for managing legacy systems

MIS 524 16

User Responsibilities

Understand scope of IT activities supporting business

Create and support understandable activity-based overhead allocation system

Provide strong input and interest in system projects

Appropriate stewardship at appropriate levelAudit reliability standards from user perspectiveParticipate in setting IT priorities within the IT

plan

MIS 524 17

Corporate IT policy Group Responsibilities

Balance tensions Develop and manage corporate IT strategy Manage inventory of h/w, s/w, systems, services,

procedures Establish standards for acquiring, developing and

operating IT systems Facilitate technology transfer (adoption) and nurture

stewards Encourage technical experimentation (research and

scanning) Develop planning and control systems, including

appraisal, evaluation, charge-back, and personnel appraisal

Boring, boring, boring….

MIS 524 18

That’s fine, but what about

people lower down the

feeding chain?

And what about us who have to work with the

systems people while systems

are being built?

And what about the rest of us who have

to manage the people who work with the new systems the

system people built for us to use?

Obviously there are a few more

challenges!

MIS 524 19

Getting Along with IT People

The Challenge You are a steward for an IT-enriched, -

enabled, or –dependent project You have to get along with IT people before,

during and after release

The Risks Poor quality, dissention, sabotage

The Solutions

MIS 524 20

What to Do…?For this Problem…. Try This…

Poor quality productUnresponsiveness to

request for helpPoor documentationApparent arrogance

Via “contract” Complain through

channels Via “contract” See below

The bulk of problems with “IT” are actually problems with communication with “IT people”. The root of this problem is narrow focus on technology (with reason) vs. broad focus on business requirements. The solution is joint project work, “culture mixing”, opportunities for mutual respect, job rotation, and familiarization.

MIS 524 21

The Two Cultures

There are at least two cultures at work here: Business culture IT culture

and the people populating these cultures have been subjected to decades if not centuries of “natural” (and a bit of “unnatural”) selection

MIS 524 22

The Pseudo IT Dept.

Background: Your dept. is highly “technologized” and depends on IT or is IT-strategic.

Challenge: How does this influence your management style?

Components: Training Conflict resolution Appraisal Rewards Hand-holding Complaints Excuses Responsibilities Leadership

MIS 524 23

Managing Technical People

And finally, what if you have your OWN IT people to manage:

Technologizedemployees

Employee who usesapplications to create

or maintainsoftware or files

Supervision, Evaluation, Coaching, Mentoring

Contractor/outsourcer

Employee of another firm

who builds or operates applications

Evaluation, Conflict Resolution, Resource Allocation

DecentralizedTechnicalSpecialist

Employee of the IT department

Who works in youruser department

Integration, Work Evaluation, Conflict Resolution, Motivation

Small or New

Data Center,E-business,

Website

Full list of business challenges

MIS 524 24

The Word…

IS people are people; they respond to rewards and praise like others. IS people are individuals; it is unfair to stereotype them except to say they probably all like IT. Technically inclined people usually want to work on the best, most advanced technology available. Managers who have no knowledge of IT and who lack, in particular, programming skills, will find it hard to be respected during tech talk with tech experts. In any group, the more individuals can overlap skills, the stronger the group. IS specialists can profit from a bit of job rotation and so can their colleagues. There are paradoxical trends in employment in the technical ranks that may present opportunities for learning for everyone. Nontechnical employees may have some technical components created for them. Technical specialists who are not needed may be good additions for groups that anticipate contracting out. The two culture syndrome is always a threat. Managers who encourage free interchanges of discipline based ides will be ahead of the game in the end.