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MWSA

P.O. Box 669

Larkspur, CA 94977

2005 - 2009 MWSA

 

All Rights Reserved

last update 12/26/07

A Tale of Two Companies

The stories you are about to read are true. The names have been changed to protect those who don’t want you to know how bad things really are.

Company A, through mergers and acquisitions, has gone through some exponential growth in the past few years. As a result their technology assets have also grown. Now here is where it gets interesting.

For the first part of their upward climb they had some Information Technology guys who decided that a particular type of network architecture (servers, workstations & operating system) was the only way to handle things. For a variety of reasons those guys have since moved on, so Company A found a new set of IT guys who, of course, decided that a different type of network architecture was the only way to handle things. Add to this the fact that some of the companies they absorbed were using a totally different type of network architecture.

Now Company A has a new set of IT guys who aren’t quite sure of where to start. They have inherited a situation with dozens of servers and hundreds of workstations, some of which can’t easily share data. Add the fact that the folks who control the purse strings are “just plain sick and tired” of having to spend more money on IT.

Company B – while not going through the same explosive growth as Company A – did become large enough to have outgrown the capabilities of their previous IT guy (a bookkeeper who secretly called their spouse for advice on how to fix their IT problems).

Over the course of the next eight months Company B went through six IT Companies and one young entrepreneur who was freelancing. The last time I checked they were looking for their seventh IT Company. The young entrepreneur for some reason always forgot to show up when the weather was really nice or there was snow on the mountains during ski season.

A coherent IT strategy and clearly defined expectations would have gone a long way toward preventing both situations. A coherent IT strategy among other things is one that is closely aligned with your business strategy and does many things for you. The following are some of the more important elements:

1. It forces you to actually plan,

2. It gives you something to benchmark where you are in your plan,

3. It gives you a way to determine what is the right way for your particular situation, i.e., if your business strategy requires using a specific set of software applications and that software only runs on one operating system, then that is the right way for that situation.

4. It gives you the ability to assess new technologies based on your needs, not the whims of the IT guys who always want the latest and greatest toys to play with. (Trust me on this. I used to be one those guys).

Clearly defined expectations should be self-explanatory. If you aren’t sure what you expect, then no matter how talented your IT guys are they are probably going to get it wrong. And they will continue to get it wrong until you both get on the same page.

For Company A having an IT strategy would have allowed them to include their increasing technology needs as part of their business strategy sessions. This in turn would have ensured that their IT guys were doing those things that were the most beneficial to the company, and not things influenced by their own personal preferences. They would have known what to expect from their IT guys, and the IT guys would have known what was expected of them.

Lastly, an IT strategy gives a company a way to benchmark emerging technology. If it were something that got them closer to their goals, then they would obviously take a good look at adopting it. If not they could throw it in the dust heap with all the other “can’t miss” ideas.

Instead of clearly defining their expectations, Company B decided that continuing to do the same things that hadn’t worked for them in the past would eventually give them the results they needed. (Anyone remember the definition of insanity?) Once again having an IT strategy would have allowed them to include their increasing technology needs as part of their business strategy. That would also have allowed them to better gauge what specific skills they needed to look for in their IT company.

These are good things to look for in an IT company:

1. Is a technician required on standby 24/7?

2. If not, what is the normal response time for a trouble call?

3. What is the emergency response time?

4. What really constitutes an emergency?

5. Is there a single point of contact or can anyone submit a trouble call?

6. Will there be scheduled routine maintenance?

Your business objectives drive your business strategy. The business strategy then drives the IT objectives, which in turn drives the IT strategy.

In other words, “Ready, aim, fire,” works much better than, “Ready, fire, aim,” if you intend on hitting the target.

by  Brian George

Copyright © October 21, 2005