When Shall We Call For Change?

We see change coming. We hear change coming. We feel change coming. But what happens? It does not come. Why?

1.     Fear—people are afraid of changing or of not being able to adapt (for example, some may be afraid of changing jobs for fear of failing or of not being able to make the transition well to a different organization).

2.     Money—someone(s) is invested in the status quo (for example, could it be that oil companies stand to lose if we go with hybrid engines or alternative energy sources like solar, wind.).

3.     Politics—perhaps, those in power have constituents that will “yell and scream” or lobby if others seek a change that they are for one reason or another are opposed to (for example, those who are pro-choice will lobby vehemently when pro-lifers attempt to limit or regulate abortion).

Note: I am NOT advocating for or against any of these positions, just providing a contextual explanation.

However, as a CIO or other leader (and this can be an official leadership position or one that is taken on by strategic thinkers, enthusiasts, and so on), I am convinced that we must call for change and help change along when “its time has come”—that is when the following conditions exist:

1)    Time is ripe

2)    Support to the people affected can be adequately provided for

3)     It is unequivocal that society will universally benefit and the change is fair and ethical. (Yes, the last one is hard to demonstrate and may be considered somewhat objective, but the concept of having “justifiable” change is important.)

Here is an example of an interesting change being called for by David Wolman in Wired Magazine, June 2009 that clearly demonstrates how these three criteria for leaders to evoke change works:

Wolman address the cost and by inference the benefits of change (#3 above): We “create hundreds of billions of dollars worth of new bills and coins every year…the cost to the taxpayers in 2008 alone was $848 million, more than two-thirds of which was spent minting coins that many people regards as a nuisance. (The process alone used u more than 14,823 tons of zinc, 23,879 tons of copper, and 2,514 tons of nickel.) In an era when books, movies, music, and newsprint are transmuting from atoms to bits, money remains irritatingly analog, carbon-intensive, expensive medium of exchange. Let’s dump it.”

Then Wolman demonstrates that  time for change is ripe   (#1 above): We have all sorts of digital money these days, such as credit cards, debit cards, e-checks, automatic bank deposits/payments, electronic transfers, and online payments. “Markets are already moving that way. Between 2003 and 2006, noncash payment in the US increased 4.6 percent annually, while the percentage of payment made using checks dropped 13.2 percent. Two years ago, card based payment exceeded paper-based ones—case checks, food stamps—for the first time. Nearly 15 percent of all US online commerce goes through PayPal. Smartcard technologies like EagleCash and FreedomPay allow military personnel and college students to ignore paper money….the infrastructure didn’t exist back then. But today that network is in place. In fact, it’s already in your pocket. ‘The cell phone is the best point of sale terminal ever’ Says Mark Pickens.”

Finally, Wolman shows that we can support people through this change (#2 above): “Opponents used to argue that killing cash would hurt low-income workers—for instance, by eliminating cash tips. But a modest increase in the minimum wage would offset that loss; government savings from not printing money could go toward lower taxes for employers. And let’s not forget the transaction costs of paper currency, especially for the poor. If you’re less well off, check cashing fees and 10-mile bus rides to make payments or purchases are not trivial…”

Whether or not it is “Time to Cash Out” of paper money as Wolman calls for (i.e. this is just an example to show how the criteria for change can be used), the need for leaders to move us towards and guide us through change is at the essence of leadership itself. Change should not be taken lightly, but should be evaluated for timeliness, supportability, and justifiability.

When Shall We Call For Change?

Customer Service Will Always Be Goal #1

Too many organizations espouse good service, but very few actually excel and deliver on the promise.

However, one company is so good at it that it serves as the role model for just about all others--that company is The Four Seasons.

The Wall Street Journal, 29 April 2009 reviewed the book “Four Seasons” by Isadore Sharp, the luxury hotel’s founder.

Here are some things that I learned about customer service from this:

- Customer Service means reliability—“a policy of consistently high standards.” At Four Seasons, anyone who has visited the chain around the world [83 hotels in 35 countries]…can attest to its reliability. To be reliable, customer service is not just raising and holding the bar high-- having high standards for quality service--but this must be institutionalized through policy and delivered consistently—over and over again. You can’t have a bad day when executing on customer service. Fantastic customer service has to always be there, period!

For The Total CIO, this type of reliability means that we don’t focus on technology per se, but rather on the customer’s mission requirements and how we can consistently deliver on those in a sound, secure, and cost-effective manner. CIO leaders establish high standards for customer service through regular performance plans, measures and service level agreements. Reliable customer service is more than a concept; it’s a way of relating to the customer in every interaction to consistently exceed expectations.

- Customer Service means innovation—“The things we take for granted now during our hotel stays-comfortable beds, fluffy towels, lighted make-up mirrors, fancy toiletries, and hair dryers-made their first appearances at the Four Seasons…likewise for European-style concierge and Japanese-style breakfast menus, in-hotel spas, and the possibility of residence and time-share units.”

For The Total CIO, technology changes so fast, that innovation is basically our middle name. We never rest on our laurels. We are always on the lookout for the next great thing to deliver on the mission, to achieve strategic competitive, to perform more cost effectively and efficiently.  Advantage. Moreover, we reward and recognize customer service excellence and innovation.

- Customer Service means valuing people—“Follow the golden rule. Workers are vital assets who should be treated accordingly…at the Four Seasons, those who might otherwise be considered the most expendable ‘had to come first,’ because they were the ones who could make or break a five-star service reputation.”

For The Total CIO, people are at the center of technology delivery. We plan, design, develop, and deploy technologies with people always in mind—front and center. If a technology is not “user-centric”, we can’t employ it and don’t want it—it’s a waste of time and money and generally speaking a bad IT investment. Moreover, we deliver technology through a highly trained, motivated, empowered and accountable workforce. We establish a culture of customer service and we reward and recognize people for excellence.

- Customer Service means solving problems—“Turning the top-down management philosophy on its head, Mr. Sharp authorized every Four Seasons employee to solve service problems as they arose to remedy failures on the spot.”

For The Total CIO, leadership is fundamental, management is important, and staff execution is vital. It is the frontline staff that knows the customer pain points and can often come up with the best suggestions to solve them. Even more importantly, the IT customer service representatives (help desk, desktop support, application developers, project managers, and so on) need to “own the customer” and see every customer problem through to resolution. Yes, it’s nice to empathize with the customer, but the customers need to have their problems fixed, their issues resolved and their requirements met.

The Total CIO will make these customer service definitions his and his organization’s modus operandi.

Customer Service Will Always Be Goal #1

Leadership Should Integrate Spirituality and Mission

I remember learning in religious day school that people are half spiritual beings and half animal and that it was a person’s duty (or test in life) to imbue the carnal part of our existence with spirituality.

It was nice to see a book today that brought this topic home; it is called “G-d is My CEO” by Larry Julian.

The premise of the book is that “we usually want to do the right thing, but often succumb to the short-term, bottom line demands of daily business life.”

Julian states: “The bottom line had become their G-d. It was insatiable. No matter how hard they worked, it was never enough, nor would it ever be enough.”

As I see it, people have two faces (or more) and one is their weekend persona that is family and G-dly oriented and the other is the one for the rest of the week—for business—that is driven by materialism, accomplishment, and desire for personal success.

This is where the test of true leadership comes into play.

We can and must do better in our business lives by “doing the right thing regardless of the outcome” and “expanding the definition of success from making money to making a difference.”

BUT, BUT, BUT…

We’re all experts at making excuses, why we need to be successful in business, achieve results, make lots of money, get the next promotion (and the next and the next) and that “the end justifies the means; you get to the outcome regardless of how you accomplish it”!

In Information Technology, it’s no different than in any other business function. It’s a competitive environment and most of the time, people’s raw ambitions are somewhat obscured (but still operating there) and occasionally you see the worst come out in people—not working together (like system operating in stovepipes), or worse criticizing, bad-mouthing, and even back stabbing.

As a CIO or CTO, we must rise above this and lead by a different set of principles. To this end, I like the “Servant Leadership” doctrine put forward by Julian.

In short, the servant leader, leads by example and puts people first and in essence, spiritually elevates the baser ambitions of people.

The servant leader is “one who serves others, not one who uses others. He/she “serves employees so they can serve others.”

“When we [as leaders] serve others, we help them succeed” and thereby we can accomplish the mission even better than pure individual greed ever could.

WOW!

The CIO/CTO can lead people, modernize and transform the enterprise with innovation and technology, to accomplish the mission better than ever and we can do it by integrating spirituality and kindness to people into what we do every day in our working lives.

Unfortunately, IT organizations are often run not by elevating people and making them significant, but instead by running them into the ground. The mission is demanding the latest and greatest to stay competitive. The technology is changing rapidly. IT specialists are challenged to keep up with training on new hardware, programming languages, systems development and project management techniques, best practice frameworks, and so forth, The Help Desk and Desktop support people are routinely yelled at by the customers. Security and privacy issues are a constant threat to operations. IT is denigrated as a support function, whose people don’t understand the business; IT is viewed as a utility and it’s people often pushed out for outsourcing.

Truly, in this type of demanding and challenging environment, it is tough for any IT organization and its people to maintain their dignity and spirituality. But that is precisely where the CIO/CTO must lead and demonstrate humanity and care for people. The true IT leader will impose structures to create order out of chaos and in so doing elevate people as the critical asset they truly are to the organization.

Here’s some ways we can do this:

1. Treat all employees with respect and dignity by representing their interests in the organization, as well as abiding by at the very least minimal standards of professionalism and courtesy
2. Partner with the business so that it’s not us versus them, but just one big US.
3. Develop a meaningful architecture plan and sound IT governance so everyone understands the way ahead and is working off the “same sheet of music.”
4. Manage business expectations—don’t overpromise and under deliver, which leads to frustration and anger; instead set challenging but attainable goals.
5. Filter requirements through a “single belly button” of seasoned business liaisons, so that the rank and file employees aren’t mistreated for doing their sincere best.
6. Provide training and tools for people to do their jobs and stay current and understand not only the technology, but the business.

Through these and other servant leader examples, we can integrate our spiritual and material lives and be the types of leaders that not only deliver, but that we can really be proud to be.

Leadership Should Integrate Spirituality and Mission

It's Not The Systems, Stupid

Being a CIO is not just about information technology—IT is a service. The real job of a CIO is truly understanding the IT needs of their customers (those who actually carry out the mission of the organization) and leading the IT people to fulfill those needs.

In essence, the CIO leads his IT staff to deliver on the mission needs of the organization. So being the CIO is far from being just a technical job; it is very much a people job.

To deliver IT then, the CIO must understand how to effectively lead and motivate his people.

There is a terrific book on this subject called “What People Want” by Terry Bacon that identifies 7 primary needs of people in work relationships and particularly how an effective leader can fulfill those needs and in so doing build a high performing workforce.

Here are the primary people needs in relationships:

TRUST—“the most fundamental relationship need. Without trust, there will not be much of a basis for a relationship at all.”
CHALLENGE/GROWTH—“with rare exception, people are not content in trivial, boring, or stagnant jobs…they need to feel that their work is challenging and that they are developing their skills, capabilities, and possibilities.”
SELF-ESTEEM—"appearance, intelligence, talents, autonomy, integrity, awards, titles, positions, job responsibilities, memberships in special groups, acceptance or recognition.”
COMPETENCE—“people want to be expert at something.”
APPRECIATED—“feel pride in who they are and be genuinely accepted for what they contribute.”
EXCITED—“people want to be energized and enthused…it’s more fun than the alternative.”
RELEVANT—“contributing to something they believe in.”

You’ll notice that monetary compensation and benefits are not mentioned here, because that’s not what this is about. Yes, we all need to be able to pay our bills at the end of the month, but beyond that we have basic human needs (trust, challenge, self-esteem…) that are fundamental to people being effective on the job through their interactions with others.

And indeed, every leader can become a better, more effective leader by understanding these relationship needs and developing their abilities to genuinely help people feel fulfilled on these.

For the CIO, I think it is very easy—too much so—to focus on technology. The field is technically intriguing, quickly changing, futuristic, and fundamental to mission. Intentionally or not, the CIO can easily overlook the people that are behind the technical solutions—those that he/she depends on to really tech-enable the organization (it’s not the systems, stupid).

CIOs, take care of your hard-working and talented people—develop their trust, provide challenging work, grow their self-esteem, help them to mature their competences, appreciate them, inspire and excite, and show them they are contributing to something important. And you and they will be more than the sum of the parts and deliver IT solutions to the organization that will truly amaze!

It's Not The Systems, Stupid

“Sacred Cows” and Enterprise Architecture

Enterprise architecture develops the organization’s baseline and target architecture and transition plan. EA is an endeavor of change and transformation from current state to future state. To achieve organizational change successfully, the “sacred cows” must be made change-ready.

In the book, Sacred Cows Make The Best Burgers, by Kriegel and Brandt, the authors explain that the greatest inhibitor to organizational change is people’s resistance—people are the gatekeepers of change and people are the enterprise’s most stubborn of sacred cows!

“Sacred Cow—An outmoded belief, assumption, practice, policy, system, or strategy generally invisible, that inhibits change and prevents responsiveness to new opportunities.”

What’s with this analogy to cows?

“Cows trample creative, innovative thinking. They inhibit quick response to change, and cost money and time. They roam everywhere…yet many organizations continue to worship their sacred cattle. They’re afraid to abandon what once made them successful, and they extract a heavy fine from those cow hunters who would ‘pasteur-ize’ them.”

What’s the imperative for change now?

“It’s hurricane season for American business. Winds of change are barreling in from all directions. Competition is tougher than ever and coming from places you least expected. The customer is more sophisticated and demanding. Technological change is incessant. Government regulations are tougher. And everyone is restructuring, reorganizing, reinventing, downsizing, outsourcing—all at ultrasonic pace.”

What are we doing about it?

“New programs, processes, and strategies have been introduced to help you keep ahead of these changes and eliminate sacred cows. In fact, they’re emerging almost as fast as the changes themselves…reengineering, total quality, virtual teams, ‘horizontal’ corporate structures…”

What are the results of these change efforts?

• “Though it’s predicted that U.S corporations will spend $34 billion on reengineering, most efforts will flop.”
• “Some statistics say seven out of ten reengineering initiatives fail.”
• A McKinsey study found that “a majority of companies researched achieved less than a 5 percent change due to reengineering.”
• “Two-thirds of American managers think TQM has failed in their companies.”
• “The number of applicants vying for the Malcolm Baldridge Award…has fallen since its peak year in 1991.”

In short, “The ’Q’ [quality] word has become cheap currency.”

Why do these change efforts fail?

• “People’s resistance to change is ‘the most perplexing, annoying, distressing, and confusing part’ of reengineering.”
• People resist change because “change is uncomfortable, unpredictable, and often seems unsafe. It’s fraught with uncertainty and always looks harder than it is….change brings us face-to-face with the unknown, and that evokes our worst imagined fears: We’ll be fired, humiliated, criticized. So we dig in our heels.”
• “We’ve seen workers fight change for months and years because they didn’t understand it, were afraid of it, or didn’t see it being in their self interest. It’s naïve to assume that the bulk of the workforce will come around. Even when resistance seems to disappear, most often it’s just gone underground, and will resurface when you least expect it.”
• “Management consultants who deal with companies in transition know that the ‘people’ part of change is critical. And that it is most often overlooked and undervalued.

“The reason that three fourths of reengineering efforts fail…is that the focus of change is on work processes, new technology…and decentralized services rather than on the people who must implement change.”

From a User-centric EA perspective, this last point is critical. Enterprise architecture efforts, by definition, are focused on business, technology, and the alignment of the two. EA looks at business process improvement and reengineering and the introduction of new technologies to enable mission success. Traditionally, EA did not look at the human element—the people factor. The necessity of measuring people’s change readiness and assisting people in transitioning to new ways of doing things is one of the most important elements of any change initiative. As I’ve written previously, Human Capital is the missing performance reference model in the Federal Enterprise Architecture. All this points to the importance of transitioning from traditional EA to User-centric EA, where the end-users and stakeholders (i.e. people) are the most important element of the enterprise architecture. How would my kids phrase this, “in the end it’s not the business process or the technology, but the people, stupid!”

What happens if we don’t recognize the centrality of people to the change process?

Plain and simple, change efforts will continue to fail. Money and time will be wasted. Our competition will continue to gain on us and overtake us. Our organizations will be made obsolete by our own inattention to our most important asset—our people!

“Sacred Cows” and Enterprise Architecture

UPS is Enterprise Architecture Fait Accompli

Fortune Magazine, 12 November 2007, has an amazing article about UPS ( a company which last year had $47.5 billion in revenue and 100,000 driving jobs)—they are a flawless example of the integration of people, process, technology, training, and a keen customer focus; a shining example of what enterprise architecture hopes to instill in the organization!

1. People—“UPS drivers make an average of $75,000 a year, plus an average of $20,000 in health-care benefits and pension, well above the norm for comparable positions at other freight companies.”
2. Process—UPS relies on “human engineering” and has “’340 methods’, a detailed manual of rules and routines” that is taught to UPS’s legions of driver candidates. Moreover, detailed metrics are kept on trainees and throughout their professional career at UPS, so that “a supervisor meeting a new driver for the first time will know every single possible thing there is to know about him.”
3. Technology— UPS has the delivery information acquisition device (DIAD), their electronic clipboard, “which is GPS-enabled, plans drivers’ routes, records all their deliverables, and is said to rival the iPhone in capability.”
4. Training—UPS has opened a new full-service training center, a $34 million, 11,500 square-foot facility, called Integrad. “The facility and curriculum have been shaped over here years by more than 170 people, including UPS executives professors, and design students at Virginia Tech, a team at MIT, forecasters at the Institute for the Future, and animators at an Indian company called Brainvisa.” The facility even has a “slip-and-fall simulator” to safely prepare trainees bodies to be alert to falls, and a UPS “package car” with see-through sides, sensors to measures that forces on trainees joints, and videocameras to record their movements as they lift and lower packages.”
5. Customer—“What’s new about the company now is that our teaching style matches your learning style. But we’re still taking care of the customer.” UPS is “the world’s largest package–delivery company…delivering an average of over 15 million packages a day.”

“While customers may be at the heart of UPSs business, it’s drivers who are at the heart of UPS itself…watch closely and those deliveries [are] an exhibition of routines so precise they never vary, limbs so trained they need no direction, and words so long remembered, they are like one’s own thoughts.”

UPS has mastered all of the following enterprise architecture aspects or perspectives:

• BUSINESS—the precision of honed business processes (“340 methods”)
• PERFORMANCE—the measurement of every critical management aspect, especially as it relates to their all important drivers and their deliveries.
• INFORMATION—UPS is an information-driven company that captures information, analyzes information, and uses it to train and refine their personnel and operations.
• SERVICES—business services such as delivery and training are best practice and tailored to meet customer and employee needs.
• TECHNOLOGY—the UPS electronic clipboard enables the information capture and provision that is needed to continuously meet mission requirements.

While, I don’t love their brown uniforms (that is supposed to hide dirt), to me the successful integration and implementation by UPS of these core architecture factors makes it a case study for EA!

UPS is Enterprise Architecture Fait Accompli

Leadership Development and Enterprise Architecture

Fortune Magazine, 1 October 2007, reports on the world’s best companies are finding out that “no matter what business they’re in, their real business is building leaders.”

“’People are our greatest asset’, CEOs always say that. They almost never mean it. Most companies maintain their office copiers better than they build the capabilities of their people.” But now companies are finding in this high liquidity market, that they are less dependent on financial capital, and more on human capital, and so they are getting serious about leadership development!

Fortune provides a number of good ideas for organizations to help develop their future leaders:

1. Invest in leadership—“you don’t build leaders on the cheap.” You’ve got to invest not only money, but also the time of the organization’s executives to help develop leaders.
2. Identify leaders early—“begin to evaluate leadership capability on day one of employment.” Moreover, begin their leadership development early.
3. Assign leadership positions strategically—assign promising leaders to work on things they need work on, rather than those things they are already good at: challenge them!
4. Give lots of honest feedback—Provide feedback on a continuing basis and make it candid!
5. Inspire leaders to perform—motivate performance through sense of mission; passion for one’s job in an organization is contagious.

In a world economy built on human capital, organizations must develop their leaders and mean it!

While many incorrectly think of enterprise architecture as simply a technology-based endeavor, EA is really a broad-based blueprint for the organization.

In User-centric EA, we look to build the capabilities of the organization to meet mission requirements: this includes everything from technology solutions, to more efficient business processes, to information sharing, to human capital development.

Previously, I have called for a human capital reference model (and persepctive) to be added to the Federal Enterprise Architecture (FEA):

• Peter Principle and Enterprise Architecture
• Human Capital is Missing Perspective
  

The pressing need for more and better leadership (and management) development is yet another reason to finally get this done by really focusing attention on the organization’s human capital needs through its inclusion in the FEA.

Leadership Development and Enterprise Architecture

Effective Teams and Enterprise Architecture

In User-centric EA, not only is human capital (individuals) important to the organization’s growth and development, but also groups or teams of people are vital to getting the most difficult of jobs done.

The Wall Street Journal, 13 August 2007, states that the CEO of ICU Medical Inc. “had an epiphany watching his son play hockey. The opposing team had a star, but his son’s team ganged up on him and won.” The lesson for the CEO was that “the team was better than one player.” The CEO used this lesson about the importance and strength of teams encourage teaming in his organization, and in general to delegate better to his employees, and getting their input on decisions

While EA is a program often associated with and reporting to the Chief Information Officer, and is thus considered somewhat technical in nature, a large part of architecting the enterprise is understanding and believing in the importance of people—individuals and teams—to getting the job done and getting it done right.

Moreover, teams can accomplish what individuals cannot. There is strength in numbers. Like the CEO of ICU Medical learned, a great player can be overcome by even a mediocre team.

Effective Teams and Enterprise Architecture