This guy, Tinker, did a little dance and gave the elf thumbs up.
I wonder if all this was to communicate to us that we need to spend more money and buy more things (we don't need) for the holidays? ;-)
(Credit Photo: Andy Blumenthal)
This guy, Tinker, did a little dance and gave the elf thumbs up.
I wonder if all this was to communicate to us that we need to spend more money and buy more things (we don't need) for the holidays? ;-)
(Credit Photo: Andy Blumenthal)
Tinker at the Mall
Most of the time, it seems like more destruction than construction really going on.
It's amazing how a construction job on one corner can take more than a whole year, when they built the entire U.S. highway system in not such a long time.
Now-a-days, money just goes down the sinkhole with the littlest jobs taking seemingly forever and the costs spiraling out of control.
Hello, is anyone out there managing this stuff?
Oh right, it's all funny money anyway.
Let's just keep printing some more. ;-)
(Credit Photo: Andy Blumenthal)
Destruction Site
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Will You Survive?
Recently there was some media interest in the government system of funding allocation, which essentially rests on one principle: “Use it or lose it.” Unlike in the private sector, where unused funds may be reserved for future use, money that is not spent in a given appropriation year is simply returned, for the most part.
In our own personal financial worlds, in fact, it is a primary lesson that we should not spend every dollar we earn. Rather, any financial adviser will tell you that money must be managed over many years, including saving money for the proverbial “rainy day” (the recent financial meltdown and recovery act not withstanding).
In business as well as in our personal lives, we are taught to do three things with our money:
· Spend some—for business operating expenses or living expenses in our personal lives.
· Save some—for unexpected needs like when a economic recession negatively impacts business cash flow or in our personal lives when a job is lost and we need savings to tide us over; or the saving could be for opportunities like to accumulate funds to get into a new business or to save up for a deposit on a home.
· Invest some—for longer-term needs like research and development, potential business acquisitions, and so forth or in our personal lives for college education, weddings, retirement and more.
My question is why in government is there not an option #2 or #3—to save or invest funds for the future, like we have in our personal lives and in business? Why can’t agencies and lawmakers plan longer-term and manage funds strategically instead of tactically—beyond the current year here and now?
The Clinger-Cohen Act of 1996 called for the development and maintenance of an IT architecture, since interpreted more broadly as the mandate for enterprise architecture, where we plan and govern investments strategically (i.e. no longer based on short-term gut, intuition, politics, or subjective management whim).
Managing for enterprise architecture necessitates that we manage business and IT investments with the ability to spend, save, or invest as necessitated by agency mission and vision, customer requirements, and the overall investment climate (i.e. the return on spending versus the return on saving or longer-term investment).
Managing money by driving an end of year spend-down seems to negate the basic principles of finance and investing that we are taught from grade school and that we use in business and our personal lives.
By changing the government budget process to allow for spending, saving, and investing, we will open up more choices to our leaders and hold them responsible and accountable for the strategic long-term success of our vital mission.
From Pigging Out to Piggybanking
Scraping the Landlines and The Total CIO
From my experience many are focused on firefighting the day-to-day and putting some new gadget in the hands of the field personnel without regard to what the bigger picture IT plan is or should be.
In many cases, I believe CIOs succumb to this near-term view on things, because they, like the overall corporate marketplace, is driven by short-term results, whether it is quarterly financial results or the annual performance appraisal.
The Wall Street Journal, 30 October 2008, had an article entitled,
“Boots on the Ground or Weapons in the Sky?”—which seemed to tie right into this issue.
The debate is to which kind of war we should be preparing to fight— the current (types of) insurgencies in Iraq and Afghanistan or the next big war, such as potentially that with Russia or China.
Why are we facing this issue now?
“With the economy slowing and the tab for the government’s bailout of the private sector spiraling higher…lawmakers are signaling that Pentagon officials will soon have to choose.”
And there are serious implications to this choice:
“The wrong decision now could imperil U.S. national security down the road.”
The two sides of the debate come down to this:
Secretary Gates “accused some military officials of “next-war-itis,” which shortchanges current needs in favor of advanced weapons that might never be needed.”
In turn, some military officials “chided Mr. Gates for “this-war-itis,” a short-sighted focus on the present that could leave the armed forces dangerously unprepared down the road.”
From war to technology:
Like the military, the CIO faces a similar dilemma. Should the CIO invest and focus on current operational needs, the firefight that is needed today (this-IT-itis) or should they turn their attention to planning and governing to meet the business-IT needs of the future (next-IT-itis).
But can’t the CIO do both?
Yes and no. Just like the defense budget is limited, so too is the time and resources of the CIO. Sure, we can do some of both, but unless we make a conscious decision about where to focus, something bad can happen.
My belief is operations must be stabilized--sound, reliable, and secure—today’s needs, but then the CIO must extricate himself from the day-to-day firefighting to build mission capabilities and meet the needs of the organization for tomorrow.
At some point (and the sooner, the better), this-IT-itis must yield to next-IT-itis!
Weapons or Troops and The Total CIO