|
Many organisations have a freeze on spending for Information Technology (IT). Having
checked for year 2000 compliance, the hatches have been firmly battened down.
No interference with IT systems is countenanced in case this introduces the dreaded
millennium bug. Perhaps as we watch and wait it is a good time to reflect on the extent to
which IT has been a Good Thing in our organisations. Research on the effectiveness of IT makes sobering reading. Many IT projects
never get to completion, the costs of implementation generally go vastly beyond what was
planned, the consequences of implementation often fail to produce the expected financial
benefits and sometimes result in higher rather than lower costs. In short, IT is
frequently not the saviour it is claimed to be.
Beyond failing to deliver or delivering at higher then
expected costs, IT sometimes seems to entrap rather than enable
the way we work. When IT providers sell you what they describe as office
productivity tools, they neglect to tell you that you may be swamped with e-mails.
The tools we now have that enable us to make pretty presentations may result in more time
preparing for and conducting meetings than getting on and doing things; have you ever
experienced death by Powerpoint?
Sometimes IT solutions design in bad service and
higher costs. For example, when you call BTs Directory Enquiries for the number of
an organisation whose location you dont know, they cannot help you because their IT
system can only search on the basis of knowing location. When you call an organisation and
get answered by a computer - press one for
, press two for
. - you
sometimes have to decide whether getting a service is worth the effort. And these are
simple examples.
IT has become the backbone of organisational life. Those who
follow this column will know I have deep antipathy to what is known as command and
control management, despite it being the way most of our organisations are designed
and managed. My antipathy is based on the assertion that, quite simply, it doesnt
work very well. The better way to design and manage work is based on systems thinking. By
this I mean treating the whole organisation as a system (see previous articles and, in
particular, the Fit for the Future series).
However, what do you suppose is the thinking implicit in the
design of organisation-wide IT systems? Naturally, for otherwise they would not be sold to
managers, it is command and control thinking. In practice this means we can
now measure to the Nth degree the costs of everything but we know the value of nothing.
To illustrate: In one of my clients, IT had been used to
record incoming work, sort it, scan it, route it, record how long people took to do it and
to archive it. It was the command and control managers dream. Managers
could tell you where everything was, how much work was being done by everybody, how much
work was coming in, going out and in backlog.
When they looked at the work from the customers point
of view, they found they were unable to predict how long it would take to deal with any
particular customer demand, hence they were unable to make and meet
commitments first base in being customer-driven. Moreover, when they studied what
systems thinkers call the value work just doing what mattered to
customers it was a minuscule proportion of the total work. The IT system was
driving the sorting, scanning, batching, counting, routing and recording of work under the
misguided assumption that this was helping the work get done. Furthermore, as you always
find with sorting, batching and queuing of work, errors were being introduced. If that was
not bad enough, the IT system was consuming enormous resources because all of these IT
applications needed maintaining. As, for example, more documents were scanned into the
system, more memory was needed which, in turn, needed yet more maintenance.
The waste in this organisation was inextricably linked to the
IT system. Managers had been sold a dream that was in fact a nightmare.
It is very difficult in such circumstances to get off the
hook. Similarly, in my own small business, the day we networked our computers was the day
our IT budget (and problems) changed forever and not for the better.
Improve first, then pull IT
There is, thankfully, some evidence of a more enlightened
approach to IT implementation. I have discovered one practitioner who goes against the
grain. He tells his clients not to follow the normal approach to implementing IT, where
managers write a specification, the IT company delivers against it and when it fails, the
IT people blame the specification or try to sell more implementation consultancy.
In simple terms, what he does is take a systems approach to
the work before even considering the role of IT. It goes like this: First of all
understand the what and why of current work performance and in doing so
use the ideas of value what matters to customers and flow
what the organisation does for any particular customer demand. Secondly, working
with the people who do the work, improve the work flow against measures that relate to its
purpose. Now and only now, ask if IT can further improve the flow of work.
What happens is that IT applications get pulled
into the work flow by people who know what they want from them, and only in places where
the people can predict how it will lead to improvement. The result is always less spend on
IT - something the IT companies are not so keen on and more value from it. Which,
after all, is why you wanted it in the first place.
It is not difficult to see why this should work. Decisions
about the use of IT are only taken from a position of knowing the what and why
of current performance as a system. Traditional IT implementation leaves knowledge
of the work to a mixture of business analysis (provided by the IT people) and
managers views both tend to think about work from a command and
control perspective. The traditional approach to IT implementation is
push here is the new IT system, now how do we get people to do it. In
this alternative approach, IT is pulled the people doing the work
understand the what and why of the work and pull IT applications
in to parts of the work knowing what to expect. The traditional problems of implementation
resistance and so on simply do not exist.
However, I have to say, this approach is not typical. Most IT
projects are introduced as top-down, how do we get them to do it
exercises. You might like to reflect on how you introduced IT and what benefits you
gained.
The IT industry is continually re-inventing itself. The major
players have moved from promoting mainframe solutions to distributed
solutions to server solutions to groupware and, most
recently, to knowledge management. But has the IT industry really changed at
all? Are these solutions designed to improve your organisation or is their
purpose just to sell more boxes?
Perhaps, as we wait for the year 2000, what should be
bugging us is what contribution has IT made?. How can we ensure we
dont repeat the mistakes of the past and get better value from our spending on IT?
Downloaded from www.lean-service.com - improve service and cut costs
Return to Articles menu
| Return to top |