Tips, strategies, and miscellaneous ramblings...
# Wednesday, December 21, 2005
Built right, or built wrong?

As technology strategists, it is our job to select the right technologies that will accelerate our companies’ success in their chosen businesses. Often a single poor choice will cause our whole project to fail. Sometimes even whole companies fail over the technologies they chose to invest in. (Where is IBM in the PC and networking business now?)

Why, then, do so many companies use a second rate process over and over again to make their choices? Why does senior management encourage it to happen? It seems to me that the right way to make choices isn’t all that hard to find. And, by the way, this isn’t limited to picking technology; it applies to most decision making.

Let’s look at what generally happens. Most organizations build a matrix of features, recruit a few vendors, fill out the matrix, give a high weight to cost, and make their decision. Sound familiar? How well does this correlate to what most companies state as their mission? How many companies do you know whose mission statement is: “We want to be as good as we can be provided doesn’t cost too much”? Or, “Our commitment is to excellence, unless it’s expensive, in which case we might not do it at all”? Is this the way we really run our businesses? In some cases, I believe that it is.

Where I work, we run the business differently. We use a sequential process designed to produce the best possible solutions (and the best possible business) every time. Here are the steps:

Step 1: Does this problem really need to be solved? There is no lack of things for us to do. If the need isn’t compelling, then we shouldn’t work on it at all. But if we resolve to work on an issue, then it becomes policy. The problem will be addressed.

Step 2: Is this the most important thing for us to do next? Look at the government. The reason things are such a mess is that there is no rational order to the way things get addressed. Time and resources – not money – are our most precious possessions. If you allow them to be spent in the wrong order, you can get lots done and still fail.

Step 3: What is the best possible solution? Here is where everyone needs to bear down. Why is this the best possible solution? What alternatives did you consider? What values are you focusing on when you choose this one? Most people do a weak job here. Management doesn’t want to press too hard (and alienate their staff). Staff members are often reluctant to take clear cut positions and be right or be wrong. In our organization we simply force people to do this. It’s a necessary and required ingredient for success.

Step 4: Can we afford it? Which one of us comes to work intending to be mediocre? Who among us plans to be second rate? If you really have identified the best possible solution, why would you want to do anything else?

Everyone knows how to spend money. If you start with a budget you get a plan to spend it, not a solution, and guaranteed, not the best solution. If the way you handle cost is other than “Can we afford the best possible solution”, then, by design, you have committed to build a mediocre institution. Is this what you really want to do? Would the CEO give you a raise if you told him this was your plan?

World-class organizations are the best at what they do because they engineer mediocrity out of their institution. What does your company want to be?

 


Wednesday, December 21, 2005 2:21:56 PM (Eastern Standard Time, UTC-05:00)  #    Comments [1]  Management | Storage Management

Friday, March 31, 2006 1:21:15 PM (Eastern Daylight Time, UTC-04:00)
IBM's problem was that they saw the PC and networking business as similar and secondary to their mainframe business. The top guys were all ex-mainframe
guys and tried to structure and manage the PC and network businesses the same way they had done it in the old mainframe division. In the end, it was the
lawyers and accountants that were making all of the product decisions ...
franz
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