This post was first published in my “Driving IT Productivity” column on CIO.com and has been updated from its original form. A few years ago I had the pleasure of speaking with Joseph Raynus about the difference of being “efficient” and being “effective” and its effect on IT productivity and business value.  His thoughts are still very relevant to IT organizations today.  He is the founder of ShareDynamics, a speaker, an author and an expert in business process management and strategic program/project planning. Mr. Raynus said that generally speaking, IT organizations are efficient regarding the ongoing execution of defined production processes and, if solid methodologies are in place, in the definition, approval and follow-through of project related activities.  The question is “Are these technical endeavors effective in their ability to maximize the value of IT to the business?”. He went on the say that IT process drives efficiency, but IT strategy and alignment with corporate goals drives effectiveness.  He went on to say that there are four philosophies IT leadership should consider when trying to maximize their organizational effectiveness. Keep up to date on changing corporate objectives and business conditions: Given the continually increasing speed of business decision making and industry movement, IT executives and staff must continually ensure that the goals they are reaching for have not changed during the project execution phase.  The risk is that an efficiently executed project may not be deemed as effective if it helps attain a goal that is no longer in place. Timeliness is [...]

This post was first published in my “Driving IT Productivity” column on CIO.com and has been updated from its original form. Asset reuse is the repurposing of intellectual property, software, physical devices, business processes, and other similar company assets. From my perspective, this is one of the most powerful ways to maximize productivity. I say this because it helps you get more value out of the items you already own. In effect, you’re getting additional value for free. Economically, there is a major financial incentive to reuse your created, purchased, and acquired assets. As an example, let’s assume that the purchase of a new software costing $50,000 was justified based on its ability to save the company $60,000 (For the finance people reading this, yes, I’m totally ignoring the time value of money to make the example as simple as possible.) over a machine’s expected life of three years. Therefore, its return on investment is 20% = ((60,000 – 50,000) / 50,000). If the software can be used for a second purpose at no additional cost that saves an additional $5,000 during its three year expected life, then its total return on investment becomes 30% = ((65,000 – 50,000) / 50,000).  This 10% increase in ROI came with no additional cash outlay and relatively no risk or additional effort.  It only required inventiveness of the IT group. My favorite two examples of this concept are Source Code Control (SCC) software and Project Management (PM) software.  SCC software is designed to store, manage [...]

This post was first published in my “Driving IT Productivity” column on CIO.com and has been updated from its original form. About twenty years ago (ok, thirty year ago), I worked for a company that implemented a company-wide productivity initiative. To their credit, they really did it right. Senior management was very involved and truly worked hard to lead the charge. The program was clearly communicated to the employees. Prizes were given out to the teams that created the greatest company savings. All in all, it was very well done and very successful. A number of business processes were improved, vendor costs were reduced and quality throughout the company was enhanced. An issue that arose was the way they calculated savings, it was left up to each individual teams to decide. Yes, we were given some guidelines, but they were very open to interpretation. So, as you may expect, since everyone wanted to win the prizes and bragging rights for coming in first, everyone was very generous to themselves, regarding the calculated savings. In the first six months, the total savings across all teams was greater than the company’s annual revenue. The result of this poor measurement process was that the program lost credibility and was eventually cancelled; even though from a true productivity perspective, the program was a great success.  I clearly remember this event and the lesson it teaches.  Poorly and/or overly optimistically measurement, even in the best of projects, can lead to their downfall. As a result of this [...]

This post was first published in my “Driving IT Productivity” column on CIO.com and has been updated from its original form. If you take a step back and consider how IT does its work, rather than the tasks it performs, you will quickly see that IT has expertise in a number of areas that are applicable to all parts of the organization.  These skills are also of great value to Marketing, HR, Finance, Sales and virtually all other business functions.   Imagine the additional value that IT could provide to the company it serves if these internal IT capabilities, such as vendor management, requirements definition and project management was made available to the organization to assist in non-IT related activities.  The creation of Centers of Excellence (CoE) can help you define, package and market this expertize to your internal business partners. The CoE concept begins by assembling a group of your top experts in a specific business activity.  This may be in a full-time role or as a specified percentage of their time because of their importance on other internal IT projects.  Then, with this group in place, leverage their combined knowledge and expertise to define best practices, create efficient processes, build formalized templates, construct appropriate checklists, and write a group charter explaining how their expertise and created collateral can be used to benefit IT and the overall organization. The formation of these groups, one per expertise type, has great value from a productivity perspective. It saves multiple groups from continually “reinventing the [...]

This post was first published in my “Driving IT Productivity” column on CIO.com and has been updated from its original form. A Productivity Cocktail ™ is the unique combination of productivity tools, techniques and best practices that maximizes your organization’s efficiency and provides the largest amount of time, money and resources for use in other business initiatives. When it comes to organizational productivity, there is no silver bullet or one-size-fits-all solution.  As a result, the pursuit of enhanced efficiency is truly a combination of art, science, trial and error, and ongoing continuous innovative improvement.  That said, there are definable operational categories that can help you identify the productivity activities that will help drive your team’s performance. These categories, described in detail in my upcoming book “Productivity Driven Success”, can help you identify areas within your company where potential operational and personal efficiencies can be found.  These categories are; Creative Delegation: Smart delegation is the concept that assigning tasks to your staff should be much more than simply handing out work assignments.  If done with thoughtfulness and holistic purpose, it can not only get the work done, but it can also increase team morale, reduce employee attrition, provide training, increase productivity, build your management bench strength and free up some of your day to perform other meaningful tasks.  These lofty goals can be achieved by assigning tasks strategically from a talent management perspective in addition to standard operational necessity. Ongoing Process Improvement: Enhancing business and technical processes is an important and long-lasting way [...]

This post was first published in my “Driving IT Productivity” column on CIO.com and has been updated from its original form. As people have personalities, organizations have cultures. Some people are open to change and some are not. Some organizations embrace change as a catalyst for future growth and profitability and some do not.  Make no mistake, productivity requires change.  If your organization views the ability to change as an important business attribute, then ongoing productivity improvement can be the status quo. If your company is set in its ways, refuses to streamline its processes and shuns innovation, then productivity improvement is not required. Given today’s business environment, a company that does not progress will soon stagger under its own weight and fade away.  That said, if you are working at this type of firm, the best way for you to be productive is by initially trying to enhance the productivity culture of your group and use it as a beacon of success for other internal organizations. There are six organizational attributes needed to give organizations the ability to accept the small and sometimes large changes that productivity enhancements require. 1. Cultural Awareness: One of the most important business attributes of people leading the productivity charge is cultural awareness.  This is the ability to understand your organization’s internal politics, idiosyncrasies, strengths, weaknesses, and how it gets things done.  To make matters more complicated, organizations have multiple cultures, called subcultures. For example, the Help Desk may have a different internal culture than Software [...]

This post was first published in my “Driving IT Productivity” column on CIO.com and has been updated from its original form. Maximizing IT productivity should never be viewed as the ultimate goal. It’s only the means to an end. Enhanced productivity is simply a method of freeing up valuable internal resources to perform other tasks. In future blogs, I’ll be addressing productivity from a number of different directions, including smart delegation, time management, reuse of existing company assets, enhanced process design, and a number of other related areas, always with the overall goal of freeing up time, money and resources to pursue your corporate and personal initiatives. For organizational productivity to be effective, a theme you will see again, it must have four primary characteristics: 1. Aligned The alignment of IT goals with corporate goals is a mainstay of the IT strategic planning process. IT productivity goals, even if at first glance seem disconnected from project goals, must also be properly aligned. As you define your productivity related activities, you must prioritize them based on the answer to two questions: Does this productivity project free up corporate resources that can be redeployed to achieve current corporate objectives? Will this productivity project, by its nature, contribute to the success, efficiency, and/or cost effectiveness of any currently funded corporate projects? If one or more answers to the above questions are “yes,” then your proposed productivity project is a candidate for funding. Then, like all potentially funded projects, it should be prioritized based on its [...]