Getting IT Right!

This is an article that was written for the February issue of the Queensland Business Review.  It is partly promoting an upcoming ‘Getting IT Right!’ seminar to be held at BDO Kendalls on 21 February 2007.  More information is available on the BDO website www.bdo.com.au.

Introduction

Stories of failing information technology (IT) projects, IT teams that just ‘don’t understand’, lost spreadsheets that contain critical business data, and critical applications that seem to crash for no apparent reason are all too common scenarios. Information technology promises a great deal to all businesses, but often fails to live up to expectations.

These problems cause frustration for all concerned. Unfortunately ‘getting IT right’ cannot be achieved with a simple wave of a magic wand. The current skills shortage shows no signs of abating, and it is important for a business to use its staff effectively. Good business support from information technology is one of the keys to unlocking this effectiveness. Four essential business tactics exist that can assist:

  1. Understand the business strategy
  2. Have the right people
  3. Use standard processes
  4. Use the right technology

These tactics will have a positive impact on the success of your business in the context of the support received from information technology.

Understand the business strategy

An understanding of the business strategy, and the involvement of business in IT decisions, is necessary to avoid an IT team working on the unnecessary projects.

This common problem usually stems from a lack of understanding of the goals and vision of the business when it is tempting to implement technologies that seem to be the correct decisions at the time. Sometimes these decisions are right; frequently, they are not.

A business’s main strategy can be focussed upon product innovation, customer relationships, or operating excellence. Identifying the predominant strategy removes trivial distractions for the IT team. There is little point to significant investment in a customer relationship system where the main focus of the business is upon delivering the best products at the best price. Conversely, for a business focussed upon customer relationships, the priority will be to deliver and operate a customer relationship system.

The business strategy must be clearly communicated to the IT team. A written statement of the business IT strategy is useful (vision, mission, and objectives, together with supporting initiatives and milestones. Even more useful is a cultural emphasis on the importance of the role of IT in achieving the
business vision. Such a cultural emphasis can be achieved through concrete actions (e.g. declining projects that do not support the business strategy) and regular adherence to and acknowledgement of the IT strategic plan.

Aligning information technology to the business strategy will reduce distractions that arise through not having a clear direction of the role and purpose of IT in supporting business goals.

Have the right people

A common problem facing IT teams is that the staffing ratio is all wrong. The wrong staff are doing the wrong jobs for the wrong reasons. For example, a business that employs four network administrators and only one help desk person will likely have a network that works very well at a technical level. Unfortunately, there will be many frustrated end users not receiving the desktop support they require. The result can be business chaos.

IT roles that do not directly support the business strategy should be considered for removal or outsourcing. IT teams regularly have ‘legacy’ roles from the past that are no longer needed or appropriate. A regular review of the roles in the IT area and their alignment to business strategy is a potentially valuable approach.

In addition, end users need the training and skills to use the technology that is provided. Frequently no training is received by IT teams, or end users in the software on their computers, and – especially in the case of upgrades – continue to use the software as it has always been used, without using new features. Adopting a formalised and documented approach to training can be beneficial, but even recognition of the need for training through ad hoc opportunities will bring benefits to the business.

Use standard processes

Often IT teams have only one person who can resolve a problem. Or worse, each team member will resolve the problem in their own way. When the staff member leaves, no-one else can fix the piece of equipment. The end result is chaos and delays for the valuable staff member.

If the same task must be done more than once, the potential for developing a standard process exists. No IT team should be without good help desk software, and ensuring a discipline around managing problems and documenting resolutions will pay dividends. There are free help desk management tools available (e.g. open source solutions) and new social networking tools (e.g. ‘wikis’) for documenting and storing processes and procedures that are inexpensive, simple to use, and easily maintained.

Reviewing the use of help desk management software, and writing procedures for standard tasks (starting with the most common tasks) will repay the business handsomely.

Have the right technology

Technology that is simply wrong for the task at hand, or obsolete, costs businesses a great deal. Excel spreadsheets will frequently be used for tasks that really require a database. Or many technologies will be used where a single technology product would suffice. It is crucial that the right technologies are used for the task at hand. This does not mean that the ‘latest and greatest’ gadgets and gizmos should be adopted, but for a business that is reliant upon IT, it is necessary to have all technology covered by parts replacement warranties.

Technologies that are still supported by the original developers or manufacturers are fundamental to ensuring that the IT team is effective. Limiting the number of technologies to support will also help. Approaches to ensure that the right technologies are used include a statement of the preferred technologies to be used (e.g. identifying a single preferred database technology such as Oracle compared to SQL Server), maintaining warranties on all important business technology equipment, and limiting the use of customised and in-house developed software.

Conclusion

Effective information technology requires that the IT team be provided with the skills and equipment necessary to deliver upon the business strategy. Likewise, the business needs to provide strategic direction and input into decision-making for business information technology.

There are many more tactics that can be adopted by businesses to ensure that IT can deliver upon its promises. This article has highlighted those tactics that are common to most businesses and will have the most positive results. Nevertheless, there are many other tactics that can be adopted that are unique to individual businesses, and must be considered in light of the specific circumstances of the business.

Outlook and Groupwise Connector

It is no secret that BDO Kendalls has a Novell network in place.  We also use Groupwise for our email and calendaring solution.  Unfortunately, when you go looking for software that integrates into email – e.g. APS, document management systems – the stunned look on the salesman’s face when you mention you use Groupwise instead of Outlook is quickly followed up with ‘but of course our next version will support Groupwise’. 

We had exactly this same experience when I used Lotus Notes.

So in response this week we started piloting MS Outlook over the top of our Groupwise server using the groupwise connector for MS Outlook.  Generally I am sceptical of such things – I never believe that the connector that maps the server’s functionality to the client’s (i.e. Groupwise to Outlook) works as well as ‘the real thing’.  Still, Outlook with the Groupwise connector works tolerably well – much better than Outlook used to work with Notes a few years ago. There are some glaring exceptions (archiving, proxying to other people’s calendars), so I am reserving judgement, but it is a fantastic leap forward as far as I am concerned – so far.

Horwath Sydney to merge with Deloitte – a comment on the profession

I was fascinated to read in today’s news that Deloitte has struck a merger deal with Horwath Sydney so that Horwath Sydney will become a large part of Deloitte’s ‘Growth Solutions’ – which is their ‘middle market practice’. I am fascinated on several levels by this.

Firstly, as of 1 July I became a Director in BDO Kendalls’ Growth Services Consulting area (I still focus on issues in the management of information systems), where we consult to exactly this middle market, from small startup companies through to corporate listed companies (from Deloitte’s perspective, we probably go from really quite small to really quite large, whereas they go from the biggest of the big to really who would want to be that small anyway? :=) ). So Deloitte is turning up the heat on what should be our market niche (ironically, I think it’s hard for them to deal with that market, but clearly they don’t think that way).

Secondly, I used to work for Horwath Brisbane before the Brisbane office merged to create the uber-professional services firm that is BDO Kendalls – in our market, we are bigger than Deloitte, and the merger did some wonderful things for our local market. Not that a big accounting firm in Brisbane is remotely like, say, a big accounting firm in London or Hong Kong. But anyway, as a result of my previous experience, I know many of the people in the Horwath Sydney firm (not that, for obvious reasons, we have been all that close for some time). And Horwath Sydney was always a firm that was focussed on its growth as a practice. For Horwath Australia, the eastern seaboard was always traditionally the strongest part of the practice (Melbourne, Sydney, Brisbane), but this has probably changed since the merger. Anyway, I have a little insight into Horwath Australia.

Thirdly, when Andersens collapsed a few years ago, the conventional wisdom was that a second-tier firm would arise like the sword held by the lady of the lake, and become part of a new ‘Big 5’. Four big accounting firms is just too small in Australia, or the world. They are too often conflicted out of their engagements. For instance, let’s assume a government is undertaking a hypothetical infrastructure sale, and is selling off this business to every big player in town. Each of the big four firms want their stake in advising the purchasers – there’s more fees in it – but of course no purchaser wants to receive the consulting advice of a firm that is advising a competitor, and often for this size sale the ‘big players’ only want advice from a ‘big’ accounting firm. Instantly, you can only really have four serious potential purchasers (this is a little simplistic, but I think essentially correct). Now, of course, this leaves the Queensland government in the lurch – who will act as probity auditors over the sale process? None of the big four can do it as they’re working for the potential purchasers (last time I checked, this was kind of a probity problem). The point is, the wisdom is that four is too small, so a fifth player should emerge in the marketplace. It has been four years now, and it hasn’t happened. Which leads me to my fourth point.

Fourthly, the BDO Australia network did its darndest to create a merger with PKF Australia, but in the end it did not come off. This is a well publicised and discussed fact, particularly quite frankly by PKF Australia :=).

Fifthly, Deloitte recently acquired the Melbourne practice within the BDO Australia federation, so we have only recently felt the pain that Horwath is now feeling having lost Horwath Sydney from its practice (not that I know much of the details). I believe we are still looking for a Melbourne suitor to take our hand in marriage (not that I would have any inside information, and if I did I wouldn’t be silly enough to blog about it).

So, those five points – where am I headed?

A little crystal ball-gazing firstly. Firstly, without Horwath Sydney, there’ll be a hole in the national Horwath network, just like there was when we lost BDO Melbourne. A key difference between Horwath and BDO though, in my humble opinion, is that our network has been relatively stable. Horwath has now lost its Adelaide, Brisbane, and Sydney offices within four years, I believe, and in the Brisbane and Sydney cases the managing director of Horwath Australia has been involved in both cases. Horwath Melbourne is very strong, but do they have the energy to rebuild the Horwath network?

The next question, though, is an interesting professional one. I really wonder whether we will ever see the much-touted Big 5 emerge. It needs a ballsy bit of merging to make a real difference. To date it has been mid-tier merging with Big 4 (doesn’t help matters e.g. BDO Melbourne to Deloitte) or one firm jumping from one mid-tier network to another (e.g. Horwath Brisbane to BDO Kendalls). In the latter case, since everyone plays musical chairs, what a network gains on the swings it loses on the roundabouts.

To really make it happen, and to get through this bottleneck in our economy (I know some might disagree or not even consider it, but accountants are needed if you’re going to realise synergies from business), you need one network to completely merge with another, which is what BDO Australia tried to do with PKF Australia. And from what I hear at other firms around town and across the country, these sorts of mergers all tend to founder on the rocks of narrow self-interest (best advice I ever heard: if there’s a horse called Self Interest running in a race, bet on it because self-interest always wins).

Partners may recognise that the merger is good for the practice, good for the profession, good for their staff, but if it takes them out of their comfort zone, earns them less, affects their equity or ‘superannuation’ in the practice, increases their risks, or something that they don’t want to see, the merger will founder. We accountants are a risk-averse bunch :=). For a national merger – particularly between federated networks – you just need one or two firms to hold out seeking a better deal and the entire merger collapses.

And meanwhile, the Big Four charge more for their services, pick off mid-tier firms as soon as they get big enough to be a threat (or, as rumour has it, start poaching their staff, although they’ve never given me a phone call!), and the bottleneck gets bigger, and the overall profession suffers. On the flip side, of course, who can blame partners for taking an offer of cash, to realise some of their investment in the business. Accounting’s a harsh game, a hard game, and a poor paymistress, really, for the risks these partners take – every time they sign a letter they could lose their house. From what I understand, motor dealers are better paid, get to drive flashier cars, and usually didn’t spend seven years of their lives studying (hands up everyone who thinks the accountants are smart? Cos you’re wrong).

I just despair a little though – where’s the profession going and are we ever going to see a Big 5? Perhaps PKF is best placed as they have been touting their new national ownership model, so once they have a national vote they can actually make a binding decision – federated associations can pretty much ignore decisions they don’t like. To date though most of the merger activity has been rearranging the deckchairs on the Titanic – a potentially pleasing activity but nonetheless one bound to end in getting the cushions wet.

Implementing your online collaboration strategy

My speaker’s notes (not that they bear much resemblance to what was actually said) are to be found here as a downloadable pdf:  Implementing an online collaboration stategy.  This presentation was given at the Blogs, Wikis, and RSS conference in Sydney on August 29th 2006.

Implementing your online collaboration strategy

We work in a Web World for business outcomes

Introduction

Good morning, ladies and gentlemen.  My name is Micheal Axelsen, and this presentation focuses on providing a practical guide to the implementation of your online collaboration strategy, with some useful tips and thoughts on how to proceed with the implementation of collaboration technologies, including blogs and wikis, into the business.

This presentation is focussed upon:

  1. Business
  2. Collaboration technologies
  3. How to succeed with their implementation

At all times, though, this is intended to be a practical look at the application of these technologies, and addressing the practical concerns of business.

Read more

Diamonds are forever

As a consultant, I am in many ways often a sort of ‘troubleshooter’. It is interesting – we often go into businesses that are having particular problems, and can sometimes almost sense the stage of the business in the growth cycle. An owner of a business can often be singularly frustrated and downtrodden by the grey nothingness and lack of effectiveness of the business, and thinking that the business is not going anywhere. However, it is usually the case that things are never as bleak, nor as rosy, as they at first appear.

I sometimes liken a business to that most adolescent of youthful enterprises, the rock band. The life of the band and the life of the business eerily parallel each other. For instance, let me consider a little-known rock band who we will call The Beatles, since that is their name.

Like most rock bands, The Beatles started in 1962 when John and Paul were sitting in a Liverpudlian garage (my rock history is a little rusty but they may have met at reform school) dreaming about creating their own rock band. The dream that many thousands since have aimed for, and the dream that many a guitar sold at a music shop was destined to founder upon. For most of us, this rock-star dream never ventures past the striden fondling of a guitar string, but for The Beatles… they made it past the dreaming stage. They showed initiative and actually formed the band!

Having initiated the band, The Beatles started to practice a bit, heard some crazy sounds coming out from a continent far away, and had a little bit of success playing the odd Liverpudlian wedding or German beer-hall. Many bands fail at this juncture – at least one of the band members (usually the tall gangly one) gets a girlfriend and everything falls apart in a mixture of acrimony and accusations of a lack of commitment amongst band members.

The Beatles survived this stage to really attack the world. They attacked every pub they could find, managed to get paid occasionally (sometimes in beer, but beer is a form of currency I’m sure), and generally were successful. Then, right when they were about to break loose onto the world in a really mature fashion, they lost the drummer. For some bands, this is a devastating blow. For others it’s a good thing – the drummer is sometimes derided as the person who hangs around with musicians. But – it can be a crisis point. Again, the Beatles managed to survive and really mature as a band. Their records at the time were fresh and enthusiastic, energetic, and a whole new sound. They had – or so they thought – mastered the genre. But there was a new crisis facing these rock stars.

The Beatles needed to keep rejuvenating and overhauling their sound so that they stayed relevant to their fan base. They overhauled their approach to music, experimented, and occasionally allowed George Harrison to select their wardrobes and – gasp – write his own songs rather than the tried and true combination of Lennon-McCartney. They moved to the next level of musicdom, an overhauled sound that was truly awe-inspiring and lived on as a legend. They were flexible and did some amazing things just to keep the band together. Those first heady days of true success were overcome, the excitement was kept through overhauling their sound, and they generally kept the ship on track. The release of the White Album is vindication of that period.

The Beatles started to broaden their interests. They networked with other musicians, they even made their own record company – Apple. This collaborative power boosted and kept the Beatles together for some time even when internal band relationships – as they always do – started to collapse.

By 1970, though, the crises had started to really build. Many blamed Yoko Ono and atrocious art. Others blamed substance abuse. In the end though, the band members diversified their interests, and the band no longer seemed as important as once it did. The band had grown, survived many crises, and finally broke up amidst acrimony and accusations of bad facial hair. The rock star dream had lived and died the path that many rock stars have taken, and many adolescent rock-star wanna-be’s have tried. At each stage The Beatles met a crisis whilst they were growing, and ended up meeting the music challenges that were presented. Statistically, many rock bands have been faced with exactly the same challenges, but most quickly collapse against those same challenges.

Now – you may be asking how all this is analogous to business. Well, most business owners are the rock stars. They create the business, take the risks, and want to achieve the tangible outcomes that rock stars get (and only rarely receive – inane reality TV shows like Big Brother aside). The challenges that the businesses face are quite relevant to businesses – although an exact parallel to Yoko Ono is hard to identify it is difficult to imagine any business relationship surviving well if the new girlfriend wanted to repaint thereception in hot pink and strew her naked photographs around the workshop.

The growing business – and if your business is not growing, it is shrinking – needs to meet the challenges of growth – at BDO Kendalls this is referred to as the DIAMOND model (Dream, Initiate, Mature, Overhaul, Network, and Diversify). The corporate strategy determines your market position, and having selected that you can build your channels to market thrugh the marketing plan, build people capability through a human resources plan, and build systems through an information systems plan.
The fast growing business needs to stay focussed on its goals through these plans, and any strategic approach that uses a measurable and defined approach is good advice for the business. The one I favour is the Verne Harnish ‘Mastering the Rockefeller Habits’ approach, which builds a long-term strategy but identifies 90-day ‘rocks’ that must be delivered quarterly. This approach advocates a 15-minute ‘huddle’ every day, a weekly team meeting, a monthly meeting that focusses on strategy, and a quarterly meeting to set the new rocks for the next 90 days. It sounds like a lot of meetings, but it does work and it truly helps for communicating strategic intent.

Finally, it’s time to consider what this all means. Although the parallels are not exact, business is like that high-school rock band. The challenges of growth are similar, and instead of focussing on the unique nature of the business it is useful to consider how businesses are very similar to each other. Once that is recognised, the strains, stresses and challenges of growth can be more easily diagnosed, planned for, and resolved. The challenge for the business owner is often to know how businesses work, and to apply these lessons in practice.

The business owner is the one person in the band who can really set the scene, experiment with the band’s sound, and deliver their own new crazy sound in business. They innovate and set the tone for the business’ approach to solving problems. The business owner is the one who must rise to the challenge of the business, and this is not resolved by hard work alone. The business owner needs to assemble his own excellent team (sometimes, you will need to get a new drummer, but the band needs to go on). By working on the business, developing the strategy and building the business’ capability, the business owner can becomea true business Rock Star.


This blog post is broadly a representation of a ‘prepared speech’ Micheal provided to Rostrum Club 17 on 19th July 2006 on the subject ‘Troubleshooters’.