Strategy Clinic: How can I curb board's blue-sky fantasies?
- Posted:
- 09:17 20 Jul 2004
Board members keep coming to me with
ideas for systems and technologies they have seen in the media. I
feel they think I am being undynamic when I point out why they
would be inappropriate. How can I explain that these "blue-sky"
articles are better described as "pie in the sky"?
Try to establish a fund for assessing blue-sky
IT
It would be better to face this head-on in a positive way rather
than sounding like the person standing in the way of
progress.
If these approaches are coming from board members then why not
produce a report for the board which says that there are a number
of technologies which have promise for the company, mentioning
those which have featured in recent requests, for which you need
evaluation funding?
The report could propose a "blue sky" fund from which such
evaluations will be paid for. It could also propose a board-level
committee to oversee the fund.
If the board refuses your proposal you will be able to explain to
directors that you have tried to get the board interested in
innovation but have been rebuffed. Eventually they should agree and
you can use the fund to finance some blue-sky work of your
own.
Roger Marshall BCS Elite
Always take a strategic view of new technologies
The prime concern of a board member should be strong governance
and return on investment. This means taking a strategic view of IT
investment and how it fits in to the goals of the business. History
tells us that rash investments without a robust business case often
result in failure.
Another consideration is the culture of your business. Do you want
to be "first to market" or do you prefer to watch others and learn
from their mistakes and successes?
There are many occasions when the IT department will push for the
latest technology and the board will challenge it, demanding that
the business benefit be demonstrated before any investment is
made.
IT is complex in terms of support and integration with other
systems, future proofing and benefits realisation. Before any
investment is made, you need to determine the following:
- Will the technology work?
- Do we need it (will it enable us win more customers, reduce our processing costs, improve our service)?
- How much will it really cost (include support, maintenance and integration costs)?
- Does it fit in with current infrastructure/systems strategy?
- Are the benefits understood?
- Is their a realisation strategy?
- Are the risks understood and can they be mitigated?
The lessons from the dotcom boom and subsequent crash are that
if you consider the above points and get them right, chances of
success are improved, but not considering them can be
catastrophic.
It is good your board is enthusiastic about IT, but you need to
demonstrate enthusiasm, and try and move them into considering the
investment criteria to understand the return.
Roger Rawlinson NCC Group
Be careful you do not dismiss ideas out of hand
This is almost certainly not the way to handle such issues. When
talking to members of your board I would recommend you assiduously
avoid any reference to "pie in the sky".
Your problem is not new. News reports often put an exciting spin on
new technologies. Hopefully your biggest asset is a reliable,
acceptably costed service which meets the company's needs.
The full integration of every piece of hardware and software is
important and not to be fiddled with lightly. However, you probably
have some resource for looking at new opportunities, and an
agreement to take an overview of new suggestions, particularly when
it comes from senior management who no doubt approve your
budget.
Have a few analogies ready if you are accused of not being dynamic
enough. For example, delivering small parts using a Ferrari may be
faster than using a Transit, but that it is not really a
proposition.
Consider the board members. In the functions they are responsible
for, they too must be presented with a lot of innovations and
opportunities: how do they tackle these?
It is worth remembering that among 100 time-wasting ideas, there
may be one jewel of an idea. I had a colleague who gushed forth so
many off-the-wall ideas that people just stopped listening to him,
only to realise, often too late, that something he had mentioned
was pure genius.
So try to keep a pleasant smile on your face and keep your ears
open. Bright ideas are not the preserve of your board alone. The
worst scenario is if you did nothing in response to a suggestion
but a competitor did and they got a whacking competitive advantage.
Then the next suggestion you would probably get would be "how about
looking for another job?".
Robin Laidlaw President, CW500 Club
Produce a quarterly report on IT market
developments
Reverse the flow of information. On a quarterly basis, prepare a
formal market-watch report, assessing developments in the IT market
within the specific context of your company's strategies and
operating plans.
Cover developments in IT, sourcing and management and highlight the
opportunities for exploiting these developments to increase the
return on investment and also any risks.
Supplement the report with a rapid-response evaluation of anything
of real significance that crops up in the meantime. After a
relatively short time, you will provide the board with a better
context for evaluating the stories they read and the confidence
that you, as a company, have your finger on the pulse.
Chris Potts Director, Dominic Barrow
Sell yourself as a business person with IT
expertise
You are in a fortunate position that board members are approaching
you with these ideas. Your first opportunity is to talk to them
about how these systems and technologies can lead to business
improvements. By suspending disbelief, you will be seen as someone
willing to exploit new technologies.
After the first stage of enthusiasm you then have the second
opportunity - to position yourself as a business person with
expertise in IT. Having defined the potential business improvement,
you can then evaluate new technology against an existing
technology. If an existing technology can do the job better and
cheaper, this is clearly a strong argument and you can then
challenge whether this business improvement offers a return on
investment.
Finally, consider setting up a group to explore these emerging
technologies. Given the strong interest from the board, this is an
opportunity to be perceived as strategic and proactive.
Sharm Manwani Henley Management
College
Talk to the board in a language they understand
As the arbiter of all things new in IT and what is essential to the
business, you have a responsibility to be aware of what is out
there and to have good, easily communicable reasons why it is or is
not appropriate.
Some might think you fortunate that the board consults you. Start
justifying their faith by appreciating their interest in all things
new, spend some time on explanations they can understand in terms
of cost, return on investment, risk and security, and don't be
dismissive. You just might miss something.
Ollie Ross Head of researchThe Corporate IT
Forum
Next question
My IT team of 15 people is already unable to meet our
workload without the help of contractors. The school summer break,
when most of the staff aim to take holiday, is a thorn in our side
every year. We cannot afford to lose staff through refusing their
reasonable holiday expectations, and management does not see the
need for additional resources. What should I do?
The experts
Computer Weekly has put together a panel of experts. You can draw
on their specialist knowledge to solve a problem. E-mail your
questions (or your own solution to this question) to computer.weekly@rbi.co.uk
NCC Group www.nccglobal.com
Ernst & Young www.ey.com
Cranfield School of Management www.cranfield.ac.uk/som
Computer Weekly 500 Club www.cw500.co.uk
Henley Management College www.henleymc.ac.uk
British Computer Society www.bcs.org.uk/elite
Impact mailto:computer.weekly@rbi.co.uk
The Corporate ITForum www.tif.co.uk
Dominic Barrow www.dominicbarrow.com