Leadership and strategic planning

Qualities of a great leader from Jim Collins

We’ve written a lot lately about what leads to IT project failures and what causes CIOs to get fired. Today I heard about business failure — and its flip side, how companies go from good to great. Yes, this was a talk by Jim Collins, author of the book by that name. And though he’s probably given this talk hundreds of times, his speech during the CIO lunch at Gartner’s Symposium ITxpo was a rousing testimonial to leadership — from what makes a great leader to what distinguishes him or her from a mediocre one, and the causes (almost all self-inflicted) of business failure.

The talk was full of useful insights, especially for all of us looking ahead to 2010 and trying to figure out what to do and what’s going to happen (beyond Gartner’s prediction of 3.3% IT spending growth).

Some of it was even CIO-specific. But more on that in a moment.

First, some things he said about who leaders of “great” organizations are:

And here are some of the things they do:

As for CIOs, Collins talked to a dozen or so of them before his speech, and reported having a lively conversation on what makes a “great” CIO. (His use of great generally refers to consistency of strong results.) The outcome: “They agreed that the truly great CIOs have the leadership capacity that they could be CEOs.” In order words, all of the characteristics above apply.

Are you a “great” CIO or “great” IT leader? Do you want to be? Try Collins’ free diagnostic tool for going from good to great.

p.s. For those interested in the business failure side of his talk, another attendee blogged on Collins’ stages of decline.

Questions to ask in building your IT outsourcing strategy

Lately, I’ve been contemplating the questions CIOs should ask as they formulate or revisit their IT outsourcing strategy. The analysts at McKinsey & Co. must be reading my mind (or perhaps I’m reading theirs?), because their blog this week includes a post about how organizations can make IT outsourcing strategy decisions based on business requirements. This is pertinent even to those organizations already outsourcing IT functions, as business needs can change, particularly in this economic climate.

According to McKinsey, the four questions to ask when considering or revisiting an IT outsourcing strategy are:

1. From which areas is the business looking to derive value from IT enablement?
2. What capabilities are required to deliver that value?
3. What are the expectations for IT in creating those capabilities?
4. In meeting those expectations, how can resources be procured in a way that meets our cost, timing and skills requirements?

I’d add a few more questions to that list, since we’ve found that organizations are seeking to outsource functions that will allow them to globalize, operate more efficiently and, of course, save money:

1. Will the cost savings provided by IT outsourcing cover the risks and management overhead of doing so?
2. Are we interested in consolidating or broadening the number of vendors with whom we outsource?
3. How will we measure success in IT outsourcing? What are the baseline results against which we’ll measure our IT outsourcing activities to determine whether we are saving money, increasing customer satisfaction, globalizing the business or whatever business goal we hope to reach?

I’m planning to attend Forrester Inc.’s Services & Sourcing Forum in Chicago next week, and will share more insights soon. Anybody else going? Look me up via email or Twitter — I’m @rlebeaux.

Three ways to reach out to women in IT: Mentor, advocate, encourage

A dinner this week on women in IT focused on midlevel women in technology and their challenges in getting ahead, given their frequently high family responsibilities and their own perceptions (realities?) of what advancing really demands. The program, featuring Telle Whitney, president and CEO of the Anita Borg Institute for Women and Technology and sponsored by CA, featured research on 1,795 women who work for technology companies in Silicon Valley, but sounded out themes that would resonate with any woman in IT regarding workplace realities and work/life balance.

The institute’s mission is “changing the world for women in technology one woman at a time.” You might also say that overcoming this gender gap means improving IT, corporate America and entrepreneurship one person at a time, since allowing success breeds more of it. Here are some of the ways we can all make that happen:

Be a mentor. Women need mentors, and often those mentors are men, who are three times more likely to be in a leadership position, according to Whitney. A story we did on high-powered women in IT also showed that nearly all of them had male mentors at some time in their career. No mentoring program at your organization? Start one. It needn’t (and shouldn’t) be gender-specific; the point is to get senior people involved in mentoring promising midcareer professionals.

Advocate for a family-friendly company culture. Some companies allow job shares or a split workday so parents can be home when school’s out or there are soccer games. My company, for instance, is very big on flextime, and we have a very generous maternity leave (12 paid weeks of time off). You can bet I work with a lot of smart folks who are also young parents.

Encourage our daughters, nieces and granddaughters to consider the sciences. Just one in four college or graduate science students today is a woman.

Then once they pursue the studies, help them get the skills they need for the workplace. One attendee suggested giving them the book Women Don’t Ask. And in that vein, let’s all tell someone today what we need to succeed, or reach out to a younger colleague with an offer of support. We can make change happen too, one person at a time.

Outsourcing IT jobs: Do U.S. companies and workers stand a chance?

Does outsourcing IT jobs mean that U.S. companies and employees can no longer compete on a global scale?

In researching my pieces from last week on the state of IT outsourcing in 2009 at both the enterprise and midmarket levels, I stumbled across an interesting note in a study by AMR Research Inc.:

“Surprisingly, barely a fifth of companies state that jobs moving outside the country is an important inhibitor to outsourcing, which doesn’t reflect the media spotlight. It appears that while many people can voice protectionist views, when it comes to driving cost from their corporate bottom lines, it’s a different story.”

I asked AMR’s Phil Fersht, a co-author of the study, about this during our interview, and he confirmed that executives often say one thing when it comes to outsourcing IT jobs, then do quite the opposite:

“When we’ve talked to executives, some of them have said, while they have to be shown to play ball and protect U.S. resources, they’ve got to offshore,” Fersht said. “The cost of running a business in the U.S. these days is so unattractive compared to other locations.”

On his outsourcing blog, in a post titled “Who’s looking out for the U.S. business these days?,” Fersht elaborated on this stance, pointing to several factors that he said weigh against multinational companies conducting business in the U.S.:

- The cost of living in business centers such as New York City and Chicago is sky-high more so than many countries’ business centers.

- Health care costs employers a great deal – and Fersht believes that President Barack Obama’s proposed health care reform will increase the tax burden on the U.S. business.

- Other western countries are more corporate friendly – according to Fersht, the cost of hiring qualified graduates in London is half that of New York.

These factors caused Fersht to pose the question: “Why even consider setting up a global business in the U.S. these days in this virtual environment?”

This is obviously a tricky issue, and I’m torn looking at both sides of it. Particularly in this economy, it’s more difficult than ever to watch IT outsourcing jobs migrate offshore because workers in Asia or South America will do the work for less. It’s an example of the free market and cost-cutting at its finest, but it leaves U.S.-based companies and IT workers at a severe disadvantage.

However, don’t people living in Asia or South America have just as much a right to earn a livable wage by putting their IT education and skills to work for them? As we’ve all heard by now, “the world is flat,” and globalization means that, just because a business if U.S.-based, it doesn’t mean U.S. workers are inherently more entitled to first dibs on sought-after IT jobs. It might free up U.S. workers to complete more value-added work, such as positions that require not only technical knowledge but business sense as well. And if U.S. companies are more profitable as a result, that is within their rights, as well.

What are your thoughts on protecting IT jobs in the U.S. vs. outsourcing IT jobs? Are the cost advantages of IT offshoring too big to ignore, or are you committed to preserving these IT jobs in America?

Qualities of a good leader in a recession: Your view?

A story on SearchCIO.com this week about eight qualities of a good leader during a recession included a lot of leadership advice for IT professionals. While I was doing the interviews for this piece, a nugget from leadership expert Jason Jennings, about being a “fish out of water” leader, really stood out to me:

Jennings identifies several traits that set conventional leaders apart from great leaders, who he terms “fish out of water.” Conventional leaders cast themselves as larger than life and sure in their stances. They are secretive and avoid signs of weakness. A fish-out-of-water leader, meanwhile, is humble and expresses self-doubt when appropriate. He is honest and admits fault when necessary.

Unfortunately, many “conventional” business executives have made news in the past several months as corporate scandals and mammoth bailouts have grabbed headlines, Jennings said. And that’s why leaders should aim for something different.

“‘Fish out of water’ is a good way to describe people who buck conventional wisdom and don’t just go along,” Jennings said.

I couldn’t agree more strongly with Jennings on this. Clearly, the leadership model that has defined much of the past decade is not working out the way anybody hoped. A confident leader is one thing; a deluded manager with the attitude, “I’m sure I’m right and this is how it’s going to be done and I’m not interested in anybody else’s opinions on this” is not.

Sure, that might seem obvious to some, but I’m surprised how many workplace “leaders” I’ve encountered who don’t seem to understand that humility and honesty will get them further with their staff – and even their superiors – than blatant posturing.

Do you agree with the traits listed in our leadership qualities article? What leadership qualities do you view as crucial during tough times? Feel free to share your comments below.

Also, I’m thinking of writing a companion piece about the qualities of a good IT employee during a recession. If you’re a CIO or IT leader who would like to talk to me about what you look for in employees during rough times, please e-mail me.

A top 10 list for how to be a successful CIO

The Society for Information Management recently asked a panel of CIOs to talk about the attributes of a successful CIO. For CIO Karan Sorensen, an emphasis on the greater good is a must –from developing your staff and learning your company’s business to being the “change agent” role model for your business peers in these tough times.

Sorensen oversees the information technology systems and support for two operating companies of New Brunswick, N.J-based Johnson & Johnson Inc.: J&J Pharmaceutical Research & Development and Centocor Research & Development. She also has responsibility for setting and executing the IT agenda for Centocor’s finance, communications, human resources, sourcing and procurement departments. She put her advice in the form of a top 10 list. Here is a condensed version:

1. Be an inspirational and ethical leader: “Focus on the greater good if you expect others to follow.”

2. Don’t be afraid to be a change agent: “Everything we do in information technology creates change. We’re comfortable with change. Be that beacon of light to the business when they are going through rough times and change.” And when you take your place at the executive table? Go in as a business leader, says Sorensen. ”Help bring the business discussions forward. That way, when you want to talk about IT, they are ready to listen because you have brought leadership into the room.”

3. Enable leadership: “Develop individuals, organizational talent and successors. That can be done through mentoring, coaching, sponsoring and networking, but it is all about enabling leadership. Be a leader of leaders and do not hold anyone back.”

4. Know how to run a business: Understand the “back office” — human resources, finance, procurement, negotiating, contracting, vendor management.

5. Understand the commercial side of your business, the sales and marketing, customer support, the multiple business channels.

6. Understand your business’s operations. What makes your business tick? “Whether in manufacturing or in services, understand what it takes to get from input to the output.”

7. Make friends with the R&D function at your company: “Way too many CIOs pass by their R&D departments quickly. Get in there. It is amazing the discovery, the creativity and partnership that they need from you. New ideas are where your future lies.”

8. Deliver on regulatory compliance. Understand the regulatory environment your company lives in and respect that.

9. Deliver on infrastructure. Most companies find that up to 50% of the IT spend is on infrastructure. “You can lead and drive change. There are amazing things to educate your company on, like cloud computing.”

10. Deliver on your commitments — on scope, schedules, budgets, quality and business benefits from IT projects.

IBM survey: CIO leadership skills rank high, business clout lower

A new survey on CIO leadership from IBM finds that you’re pretty pleased with yourselves. Congrats.

According to the survey, taken in July, 91% of CIOs see themselves as leaders of their IT organizations, possessing a clear vision of how IT can drive the business forward. Ninety percent said they have the ability to influence others, even without formal authority. Eighty-seven percent enjoy “strong executive relationships.”  

It seems that CIOs also did their best to prime their people for the economic pain ahead. Eighty-five percent told IBM that they are leading initiatives to ensure their organizations are “flexible for change.” Even better? Eighty percent report that they are regarded by their colleagues as a leader of change and transformation within their companies.

The survey results are based on responses from 300 CIOs in 45 countries and 32 industries across the globe. 

The fly in the ointment for the technocrats of the executive suite?  The business doesn’t think quite as highly of you, as you do of yourselves.

Compared with the overwhelming majority who saw themselves as masters of their IT domain, “only 67% are active participants in developing business strategy,” according to the survey.

Sixty-seven percent doesn’t sound so bad to me, judging from the CIOs we hear from. But a perusal of the 2007 results from IBM’s inaugural CIO leadership survey suggests CIOs have lost a bit of ground on this front in the last 12 months. Last year, 69% of the CIOs surveyed said they had “significant involvement in strategic decision-making.”

There are other indications that CIOs still function as the Rodney Dangerfields of the enterprise. 

In contrast with the 90% who said they are leading and influencing across the organization, even when they lack formal authority, only 74% of the CIOs surveyed say that their business colleagues are aligned with their vision. In addition, only 80% say they are regarded as trusted advisors to their business colleagues.

Finally, many of the survey respondents also ‘fess up to falling short on the mantra du jour for the ambitious CIO:  IT-enabled business innovation. Less than two-thirds of those surveyed (63%) said they have successfully “secured resources for innovation by identifying technology-enabled business opportunities.”

You can access the detailed analysis of the survey results and learn more about the “opportunity gaps” for CIOs by registering at the IBM link above.

Tech warriors on the offensive

Downturn, shmownturn. Your peers at technology companies apparently don’t need a global recession to get their juices flowing. A new survey of 151 U.S. technology company executives by Deloitte Consulting LLP identified competition, not a downturn in the economy, as a main driver of change at their companies. The execs hailed from a variety of technology sectors, including telecommunications, semiconductors, OEM/hardware and software industries, Deloitte said.

According to the study, a majority of the technology companies (59%) surveyed said they had shifted focus prior to the economic downturn to concentrate more on tuning up internal operations that would make them stronger and more flexible in the face of global competition. Company-wide initiatives centered on implementing information technology, driving cost reductions and restructuring operations, as opposed to emphasizing new products and services.

“While new product innovation and market expansion have and will continue to be crucial elements to a technology company’s success, they alone are not longer sufficient to guarantee long-term survival and value creation,” says John Ciacchella, principal and U.S. consulting technology leader at Deloitte.

Not only were these technology warriors on the rampage before the recession hit, but they’re also pretty delighted by their own efforts. Another eye-opener from the survey: The majority of initiatives met (60%) or exceeded (23%) expectations, while comparatively few failed (5%) or only partially met (12%) expectations

Sunrise, sunset: Sun Microsystems’ Bechtolsheim decamps to take on Cisco

Sun Microsystems co-founder, early Google backer and computer engineer extraordinaire Andreas von Bechtolsheim is leaving his job as chief architect at Sun to apply his considerable talents to Arista Networks, a company he started as a sideline four years ago. The startup, which sells cloud networking technology for large data centers, has built a line of 10 Gigabit Ethernet switches that Arista execs say rivals anything Cisco offers, for a fraction of the cost. Google is a customer.

This is the second time von Bechtolsheim has left Sun, having decamped in 1995 to found Granite Systems, also a developer of high-speed network switches. That company was acquired in 1996 by Cisco for $220 million, with Bechtolsheim owning 60%. He worked in Cisco’s Gigabit Systems Business Unit until leaving to found Kealia Inc. with David Cheriton, a partner at Granite Systems. Kealia, which focused on advanced server technology, was acquired by Sun in 2004, prompting Bechtolsheim’s return to his old stomping grounds.

The high-profile leave-taking is getting a lot of play in the industry and mainstream press, most of pretty  breathless. The New York Times story refers to Bechtolsheim as  a “brilliant billionaire who has created some of the best-selling computer systems in the industry.” BusinessWeek casts the high-profile leave-taking as another blow for the slumping Sun, depicting Bechtolsheim as Sun’s “technical savior.”

No question the German-born Bechtolsheim is a star of the first order at Sun. He was a wunderkind when he designed Sun’s (Java) original workstation while still a Ph.D. student at Stanford University and does not appear to have lost any of that youthful brilliance. Certainly Sun Chairman Scott McNealy must be feeling the loss, judging from a keynote talk he gave shortly after Bechtolsheim returned to the company in 2004.

In the keynote an ecstatic McNealy recalls meeting Bechtolsheim on the Stanford campus “a long long time ago,” when McNealy was 27. “Little did I know that he would turn into what I consider to be the most prolific and exciting and talented workstation and single-board computer designer on the planet,” says McNealy, welcoming “employee number one” home and inviting Bechtolsheim to join him on stage to answer questions about what the Kealia technology would do for Sun.

“This guy is prolific beyond anything you’ve seen and we are very, very excited. It is kind of nice to have him running up the steps and lighting the torch here for what we are going to do. … I just do not know if you can tell how excited I am to have Andy back on board because I will follow this guy anywhere and do everything I can to help him be successful.”

You can read the full interchange with Bechtolsheim at that 2004 conference on SearchCIO.com.

Top 10 strategic IT technologies: Boo!

Virtualization — the ghost in the machine — won top place in Gartner’s annual list of IT technologies that will likely impact your business in the next three years. Cloud computing came in No. 2. The power of the Web made itself felt, with Web-oriented architecture, enterprise mashups and social software and networking jumping up the list from last year. Oldie but goodie business intelligence is back in a new guise. Green IT, No. 1 last year, occupies the No. 10 spot in 2009. We’ll explain later.

Virtualization was singled out not for its newness — the concept has been around for decades — but for the myriad ways it provides value to the enterprise. Likening virtualization to a Swiss Army knife, Gartner analyst Carl Claunch said its uses extend well beyond servers now, to storage and client computing. And it is not just the cost savings that make this technology so compelling. Virtualization’s capacity to make computing appear simple and homogenous on the face of things, while accommodating the required complexity on the back end is perhaps its ultimate achievement, said Claunch. He presented the list with colleague David Cearley at the Gartner Symposium/ITxpo going on in Orlando this week.

It’s hard to overstate how much the faithful who trek to Symposium get a charge out of this annual ritual. From the size of the crowd — cheek to jowl and standing-room only — you’d think Gartner was announcing this year’s Nobel laureates or the 10 finalists on American Idol. Technology rocks too.

The session went for about 45 minutes, with interesting analysis from Claunch and Cearley. I considered typing out the details, but the Gartner announcement of the top 10 gives you the rationale, if not all the nuances, for the rankings. And I’d much rather hear what you think of the list.

So, without further ado:

Gartner’s 2009 top 10 winners

1. Virtualization

2. Cloud computing

3. Servers — beyond blades

4. Web-oriented architectures (WOA)

5. Enterprise mashups

6. Specialized systems 

7. Social software and social networking

8. Unified communications

9. Business intelligence

10. Green IT

Plus:

Changes from the 2008 Strategic Technologies List

• Retired* from the list: Real World Web, business process modeling, metadata management.

• Topic retained and evolving from last year: Green IT, virtualization, unified communications, mashups (now listed as enterprise mashups), social software (adding an emphasis on the social networking aspect), WOA, beyond blades (was listed as fabric computing last year).

• New this year: Business intelligence, specialized systems, cloud computing (evolving from 2008 Web platform topic).

*Gartner: Removing a technology from the list does not mean it is no longer strategic. Rather, it reflects a shift in emphasis relative to other technologies now appearing on the list.

And finally:

My story on last year’s Top 10 list from Gartner.