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Tue, Oct 30, 2007 10:44 EDT

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Posted by: Laurie M. Orlov in Best Practices Topic: IT Organization ManagementBlog: Reinventing IT
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I think CIOs are justifiably nervous about their staffs. It was good to see a few newbies in Society for Information Management’s (SIM) 2007 Top “10” IT Management Concerns , findings from their 2007 trends survey. Notably new to the top 10 and weighing in at #3: the need to ‘build business skills in IT.’ That old chestnut, ‘IT and business alignment’ was still there, down from #1 to #2 (tackled elsewhere by Chris Potts) and moving up to #1 from second place: ‘attracting, developing and retaining IT professionals’, which seized mindshare of nearly 51% of responders. Other concerns new on the list: reducing the cost of doing business, improving IT quality, managing change, making better use of information, and the evolving CIO leadership role.
Bear with me while we put a few of these elements together and see where we are. Turnover is low (61% reported it to be below 5%), yet 52% are increasing headcount. The reasons: first for growth, but second to replace departing employees. 86% paid their staff more in 2007 than in 2006, but many do not plan to do that again: 37% expect that in 2008, they will pay the same (20.2%) or less (17.2%!) than in 2007. And in recruiting both entry and mid-level hires, problem solving and communication were among the top skills sought.
So let’s sum all that up: CIOs are nervous. Despite the fact that a low percentage of staff are departing, it looks like next year a larger number will see no raise or perhaps even a pay cut, so it's quite possible that more will depart, leaving them with the need to find more people. This, therefore, is a skill mix problem, which brings us to the need to ‘build business skills in IT’ and why it is in the top 10. Perhaps those business skills are the very same as the skills ranked high by SIM for prospective hires: problem solving and communication.
Perhaps those long-time, not-yet-departing folks in IT organizations are mired in some technologies (perhaps doing maintenance or other operational work) that are not in synch with what the business needs today. Perhaps they are the ones who don’t understand the business, and perhaps are poor at communication and problem solving.
Maybe it's time, as one CIO of 4000 person IT organization recently told me, if you want to upgrade your staff, you send your people to school. He hand-picks and sends them out to a customized part-time program that helps them develop skills like finance and to gain a broader view of project management, and improve communication and political skills. “If all organizations did this, we would upgrade the profession. This enhancement to the business function and capability is a win-win.”
Let's not forget that the number one reason people leave jobs is their manager. Within that, lack of appreciation and day-to-day support and advocacy are catalysts for frustration and finding the exit – if there is someplace to depart to. There is the conundrum: because their skills are not quite right, they may not depart (see SIM turnover data). So cultivating the talent in the staff you have, growing them into the jobs you need, and then rewarding them – is the way to develop and retain the IT professionalism that you want. And recommendations among peers about what a great boss you
Laurie,
You noted that the responders were anticipating stale or negative pay for 2008, which is potential angst for their staff leaving. And then you noted that perhaps these same staff have not kept up with the business times, and may also be or become a hindrance to IT and business alignment.
So your next comment to teach them surprised me. But with what funds? I like the example your 4000-FTE friend is setting, but I doubt that person is the same person worrying about losing staff due to pay cuts.
Luckily, I have found that funds are not always needed. I have seen successful in-house "internships" accomplish the same goals, AND improve IT-Business alignment.
These "interns" are embedded IT staff in functional departments, who while still reporting to IT, are assigned to specific business managers to accomplish short term goals. That could be helping with a marketing campaign, assisting with a business process audit, evaluating business service outsourcing vendors, or any number of specific departmental projects. Like any intern, the business manager agrees to help that person learn the ropes through on-the-job training, project participation, etc.
The key to the success of these kinds of programs, like any mentoring or internship program, is that the business executives agree to teach.
Agreed, assigning IT staff to 'temporarily' work in the business is one way to boost the business skills of IT staffers. And point well taken, is that business execs must agree to train them.
As part of that approach, make sure that the 'intern' is also observing the processes being used in those departments, bringing back ideas or suggesting ways that IT capabilities can be used to improve those processes. One CIO of a large Internet business told me not long ago about how telesales people were still faxing out quotes and waiting for faxed signatures -- that is a great example where IT 'interns' can both learn the telesales process and recommend an electronic quote system.
Job rotation, a large step beyond internships, is another deliberate effort to cross-pollinate IT and business knowledge -- several CIOs I have spoken with deliberately seek people from the business departments to join IT and seek opportunities to rotate IT staffers.
Difficult but makes both sides smarter.
Finally, dispersing some number of IT staffers to be co-located with the business groups, bringing back what they learn to group IT meetings and training sessions, is yet another way to boost the business knowledge of IT staffers.