Wednesday, September 29, 2010

Paul Moulton, Executive VP & CIO, Costco

I have written lately on the challenge IT leaders face bridging IT and business goals. Last week I attended an event that hosted a CIO panel including Paul Moulton, CIO of Costco. Mr. Moulton made a few great comments that reinforce the need for IT and business goal alignment.

Mr. Moulton stated that he preferred vendors that are not too technical and that he likes to see a PowerPoint presentation that uses business terms. If the presentation is in all technical terms Mr. Moulton immediately thinks the presenter is a gear head and wants to end the meeting quickly because “… he just makes me feel stupid.” The implication is that nothing is really translating to the business needs and the meeting is essentially a waste of time.

Mr. Moulton focuses on implementing technologies that are doable, sustainable and drive business cost efficiencies. Once the technology to be implemented is identified he asks two key questions:

1. Can we use what we have to accomplish the new technology plan?
2. Can we buy or do we need to build?

Mr. Moulton said they are looking at the cloud and what technology areas make sense to move that direction. He is in the wait and see mode primarily because of his belief in the basic principal that pioneers get a lot of arrows in their back. When anyone asks how to do something that he does not immediately know the answer his response is “Can’t the cloud do that?”

Wednesday, September 15, 2010

The Importance of Envisioning

Nortec uses Microsoft Solutions Framework (MSF) project management methodology. MSF has five phases – Envision, Plan, Build, Stabilize, and Deploy. Envisioning, the first phase, is very important and is where the technical professional bridges the gap between business goals and technology.

The technical professional needs to engage the business unit leaders that will be involved with the technical solution being created and understand their key performance indicators (KPIs). He then determines how the technical solution being created will impact the KPIs. Once the information is gathered the envisioning document can be created. This envisioning document should be reviewed with the business leaders to be certain that there is alignment around the technical solution to be created and that there is no miscommunications.

Engage the different business leaders, and understanding their goals to bridge the technology business gap.

Friday, September 10, 2010

7 Keys to Mitigate Risk in IT Projects:

1. Challenge assumptions
2. Manage dynamic changes
3. Maintain operational discipline
4. Take the right risks
5. Focus on long term
6. Maintain margins of safety
7. Anticipate failures

Thursday, September 09, 2010

Dealing with Work Overload

IT professionals have skills that are in high demand and it is easy to become over committed. Managing time becomes extremely important and doing it professionally can be challenging. The IT professional typically is getting hundreds of emails a day and constant requests.

How can the IT professional possibly manage in today’s busy environment and not let things slip through? The key is managing priorities and pushing back in a professional manner when necessary. Take action as quickly as possible and avoid “I will deal with this later.” Make decisions on emails – delete, take action or schedule. Keep very few items in your in box. Plan your week and if too much work is scheduled than find work you can delegate or eliminate. Communicate the work that will be incomplete – “push back”. Be focused on the priority work and not just the most recent request or the work that is making the most noise.

Time management and communications are the keys to managing through when there is too much work to be done. There will always be more work that can be done than hours in the day. Prioritize, communicate and use time management to accomplish more than expected!

Friday, September 03, 2010

“The Next Leap in Productivity” by Adam Kolowa

I read “The Next Leap in Productivity” by Adam Kolowa and he makes a strong case for getting the CEO and other senior management involved with the information technology strategy. “Who is driving the IT Strategy?”

Implementing information technology provides cost reduction through process automation and this is the primary role. The secondary role is to drive strategic competitive advantages through “speed, agility, and consistency.”

“CEO’s and CFO’s are not expected to understand how IT works. But they are required to ask the write questions:

When approached with a new project the CEO should ask:
1. How much money will it save the company?
2. How much will it increase operational capacity?
3. When will it be done?

Of course the CIO can prepare the answers in a FAQ type format and here are some of the other important questions from the book I like:

1. What other processes can we auotomate?
2. Which legacy systems can we moth ball?
3. What are realistic expectations for IT?
4. How will IT performance effect other parts of business?
5. Is IT budgeting driven by business needs?
6. Does the company have an information strategy?
7. Does our IT infrastructure support our information strategy?

Wednesday, August 18, 2010

Techniacl Focus

Nortec’s primary success formula is being great consultants by focusing on a relatively narrow band of information technology. We focus on network infrastructure and corporate communications and specifically around four key partners: Microsoft, VMWare, Symantec and ShoreTel. This focus allows us to hire and develop the best professionals and go deeper into these technologies. We specifically focus on the following solutions: Exchange and Email Archiving, Windows Server, System Center, Virtualization, SANs, Backup and IP Telephony.

Nortec does work with a broader set of technology around infrastructure that includes switching and routing, security, web servers, SQL, and SharePoint. This is where Nortec and many consulting companies and individuals are challenged as to where do they draw the line on their skill set. When do they stretch and when do they hold the line and say “I am not the professional for this work.” This is a harder decision if you have a client that knows you are great at what you do and encourages you to stretch.

The key for staying focused is having a clear knowledge of current skills and vision of skills to be developed. When there is an opportunity to stretch, only stretch to the extent it fits in with the vision and development plans. Great technical professionals have figured this out. They know exactly how far they can stretch and avoid putting themselves or the company in a bad situation. They do stretch and when they stretch they put in the extra hours preparing and make sure the stretch is not a leap they cannot handle.

Information Technology is extremely dynamic so updating and developing skills is extremely important for a successful professional. At least once or twice a year an IT Professional should reflect on their current skills, update their vision as to where they are going, and create a plan how they will get there.

Monday, August 16, 2010

Getting Away

I just returned from a camping trip with my extended family on the French River in Canada. We paddled down the French River in canoes about 6 miles. We camped in tents for three days with no email, phone, electricity, or even running water! It was really getting away. I camped away in the wilderness as a kid but this is my first canoe trip and first remote camping trip as an adult with my kids.

The experience of paddling for four hours was great. The campsite worked out really well with a 10 ft. rock to leap off into the water – my son’s favorite part of the trip. We had some fishing and great weather - 70s pretty much the entire trip.
Remote camping is like going back to primitive life style and somehow is appealing. The kids certainly love it! I highly recommend the getting away part. The family bonding from this kind of adventure is great. Oh, did I mention the French River is beautiful?

So, take vacation, really get away, enjoy your family, disconnect from the rest of the world and decompress for a few days. It’s as good as it gets!

Thursday, August 05, 2010

Refining Business Model

Nortec is now in our 20th year and it looks like it will be a good one. I am afraid to get overly optimistic with the economy and markets just recently improving. Many companies are showing good results and have used the difficult times to make the hard decisions on how to run a leaner business. Business leaders are not in a rush to add non-revenue producing overhead. The result is businesses are creating a more successful business model!

A successful business model is the silver bullet! Ok, it is not a silver bullet; I just wanted to say that! A successful business model is one of the key success criteria and something that business leaders need to continually analyze to try and find ways to improve. Otherwise, you could end up with “bullet ridden body syndrome” - essentially a business with so many holes, there is no hope. If the business model is broken it does not matter how much business you bring in and how great of work you perform you will just create more of the same problem and this is usually in the form of losses.

I used to think that scaling a low profit or break even business model would get the economies of scale and then somehow the business would go through metamorphoses with the result of a thriving well established business at the other end! This is the model that you sometimes see venture capital drive businesses toward. In some ways it makes sense, as you need a minimal size otherwise profit is not material. If you can pull this little maneuver off great! The challenge is that driving profit in a larger organization is not really any easier and may even be harder. Figuring this out and driving a profitable business in every stage ensures that the discipline needed is in place and the model works. Then the questions become: 1. Will the business model scale? 2. Will the business grow?

Tuesday, August 03, 2010

Cloud SaaS Growth According to IDC

IDC is predicting Software as a Service (SaaS) segment of cloud computing to be $40.5 Billion by 2014. This reinforces the high growth expectation of cloud computing.

"Figuring out how to find and capitalize on the enormous cloud services transition is the number 1 strategic goal of most IT product vendors," according to Robert Mahowald, research vice president of IDC's SaaS and Cloud Services practice. "Cloud represents both a tremendous challenge and potentially an opportunity to align with partners, create new capabilities, move into new markets, and define new leaders."

The expectation is that most software vendors will be looking to sell a cloud solution first in 2014.
“Worldwide Software as a Service 2010–2014 Forecast: Software Will Never Be the Same” by Robert Mohowald:

http://www.idc.com/getdoc.jsp?containerId=223628

Thursday, July 29, 2010

Hiring the Best Technical Professionals

Nortec is an information technology (IT) company so having the best technical professionals is paramount to our success. We are currently recruiting and hiring senior and mid-level consultants so this is top of mind. Actually, we are always recruiting since finding top IT talent is very difficult but currently we are looking to add at least two consultants. We are also always investing in developing our technical professionals as it is often easier to grow our professionals than hire.

Since hiring the best is so important, we have invested in creating a solid process for hiring. We start by maintaining a mind set of never cutting corners. Unless all of the interviewers give a thumbs up, we do not proceed with the hire. Everyone has veto power! This is important because success on the job often involves the team getting behind the new employee and ensuring that they are successful. We don’t need someone on the hiring team saying “See, I knew they would not work out.”

Our process starts by finding resume’s with the key skill sets that we need at Nortec and this usually centers on solid network experience largely around Microsoft Windows Server and Exchange. We usually start with a chronological in-depth interview to determine if the prospective employee has a track record of success and is the right kind of individual for the role at Nortec. This interview is in person and can be an hour and a half to two hours long. We than have a technical interview and this is usually done by phone and lasts about an hour. If the first two interviews go well we run a background check on driving record and criminal record. We then do a second in-depth chronological interview. If everyone gives the thumbs up and the background check comes out, we make an offer! Hopefully we succeed at bringing on a great new employee!

Tuesday, July 27, 2010

Cloud Computing Hype

Last year cloud computing market was about 2% of IT market and now has grown to as much as 4%. Although it is still a small segment of IT spending it is in a high growth phase – “Green Fields." Cloud Computing is garnering a tremendous amount of attention considering it is less than 5% of IT market. Two weeks ago at the Microsoft Worldwide Partner Conference just about every presentation somehow involved the cloud. I have seen it placed at the peak of the hype curve and recently seen articles suggesting that it may be the next bubble.

Cloud computing is getting a tremendous amount of attention because of the growth and more importantly it is a complete shift in the way that companies buy technology. Cloud computing presents challenges for the IT community as it is compelling in many ways but at the same time is extremely new to the customer and the suppliers. IT companies are scrambling to create models for the delivery of cloud services and how best to support the solutions. Nortec created our Nortec 24/7 suite of cloud services five years ago and we have been refining and working out the best practices. It has taken time to create the client reports, management processes and best practices on migrating and managing the cloud offerings.

There appears to be agreement among industry experts and IT business leaders that cloud computing will continue to grow at a high pace for the next few years. The real question is when will the growth slow and ultimately how much market share will be in the cloud when the growth flattens – Greater than 40%? We will see…

Friday, July 23, 2010

Brilliantly Simple

Shortel’s tag line is “Brilliantly Simple” and besides being an oxymoron, it speaks to what makes ShoreTel a great product. It is easier to put together an overly complex solution than it is to create a simple eloquent one. Some things are complex and complicated like calculus but the brilliant mind is able to take the complexity and create something that is simple. This is the essence of great technology. ShoreTel had the advantage of designing from the beginning an IP Telephony solution with a clean slate. The result is “Briliantly Simple.”

“Nothing is more simple than greatness; indeed, to be simple is to be great.”
- Ralph Waldo Emerson

Friday, July 16, 2010

Virtualization Challenges

Implementing a virtual infrastructure is extremely compelling from a cost perspective and management. There are four main challenges outlined in a recent survey "Strategies to Improve IT Efficiencies in 2010" by Forrester.

1. Assessing Server Sizes for Virtual Servers
2. Assessing Performance and workload needed
3. Major performance issues during peak loads
4. Managing the complexity of a virtual infrastructure

These issues are all tied in to the need for implementing a well planned virtual infrastructure. The complexity is greater than in a traditional environment so having the best technical experts do a comprehensive capacity plan and then design is paramount for success. The plan needs to go beyond standing up the infrastructure and include how the virtual infrastructure will be maintained.

Once you have the virtual infrastructure in place you will need to address:

1. Visibility – Where is the application and where is the problem?
2. How do you prove source of problem to the component owner?
3. Where will the next constraint or problem arise?
4. Planning for the next expansion
5. Dealing with applications resource contention
6. Over use of VMotion – simultaneous moves in same LUN can cause poor performance

Virtualization creates the most dynamic data center that IT management has seen - The mantra becomes “constant monitoring, modeling and planning.” Depending on the size and complexity of your virtualized infrastructure the technical management team should at least once a quarter and maybe as often as weekly do a capacity planning style exercise based on current utilization and planned expansion.

Here are the virtualization mistakes to avoid:

1. Racing to deploy and failing to plan completely
2. Configuration mistakes – check before using default settings
3. Not enough storage IOPs
4. Resource contention – not all applications work well together
5. CPU access – underestimate demands
6. Not understanding work loads
7. Not taking complete system into consideration
8. Lack of awareness of the dependencies
9. Lack of awareness of workload curves

Source Article: Datamation – “IT Survey Highlights Virtualization Challenges”:
http://itmanagement.earthweb.com/features/article.php/3892601/

Tuesday, July 13, 2010

Investing in Information Technology

I attended a forecasting presentation by Tiffani Bova, “Reading the Tea Leaves” at the Microsoft Worldwide Partner Conference yesterday. Ms. Bova spoke about the IT industry from the Microsoft Partner perspective and the presentation was excellent.

Ms. Bova stated that IT spending is about 64% on maintaining current IT systems and the other 36% is split between growing capability and implementing new technology. These ratios have been about the same for the past 10 years and this surprised me a little as I would have thought that through advancements in technology maintaining existing systems would have been reduced.

Not surprising technology spending is off from 2007 and 2008 and will take a few years to return to the peak levels. The cloud is expected to grow to about 20% of IT spending over the next few years so this is a high growth emerging market. Although traditional IT spending will grow slower, there will be 4% to 6% annual growth in most IT segments.

Ms. Bova pointed out that companies have been in the save money mode for several years now and are now trying to find ways to transform their business and take advantage of technology. Focusing entirely on ROI and saving money may not be the best strategy now. Clearly ROI is important but, “What technology can a business implement to drive success?”, is a more significant question today.

Friday, July 09, 2010

Cloud Computing

I attended a web presentation on SaaS / Cloud Implementation by Robert Kulhawy, Ken Powell and Kevin Nikkhoo. The presentation was from the perspective of developing a SaaS business from the software vendor perspective. Here are the pros and cons of cloud based solutions they outlined.

Pros:
1. Cost Effective
2. Allow businesses to focus on their core business
3. Ease of implementation and management
4. Operational cost instead of capital cost
5. Flexibility and scalability

Cons:
1. Perceived Security of information
2. What happens if the provider fails and you still want to use the software
3. Internal IT staff has empire threatened and gives up some control

The recommendation when developing a cloud based offering is to not over customize and to develop a multi-tenancy solution that scales in order to gain price advantage. The recommendation is to price the offering at an order of magnitude less than the traditional solution meaning not half the price but 1/10th the price.
The challenge for the provider is then to drive the volume and keep the transaction low touch and standard contracts. Historically, this takes a significant amount of time and the cloud provider needs to be prepared with great tenacity. The good news for the consumer is the price will be very compelling and if you are able to adapt your business to a cloud offering it will be a very effective solution.

Wednesday, July 07, 2010

Project Management Success

Project management is key to success in large projects as well as smaller ones. Nortec is closely aligned with Microsoft so we use Microsoft Solution Framework (MSF) and this is effective. MSF is designed primarily around software development and we have made some modifications to adapt to infrastructure projects and thinned it out for our smaller implementations.

The project management methodology is not as important as choosing one and then having the discipline to follow the methodology. Clearly a project will flow better if everyone involved is familiar with the methodology. The challenge really is having a Project Manager who is familiar enough with the work that he is able to gauge how long certain tasks should take and then willing to hold the individuals accountable. Unfortunately, the Project Manager has to be the bad guy sometimes!

Here is a good article on Project Management in CIO Magazine “IT Project Management: 10 Less-Considered Keys to Success” by Meridith Levinson:

http://www.cio.com/article/597712/IT_Project_Management_10_Less_Considered_Keys_to_Success?source=CIONLE_nlt_research_2010-07-07

Thursday, July 01, 2010

“Why are we happy?” by Dan Gilbert

Last week I watched Dan Gilbert’s Ted Talk “Why are we happy.” His main point was that we are happy because happiness can be synthesized, meaning we can learn to be happy regardless of our situation. He compared synthesized happiness to natural happiness, with natural happiness being the “feeling we get when we get what we wanted” and synthetic happiness being “the feeling we make when we don’t get what we wanted.”

When we synthesize happiness, we teach ourselves to be happy by realizing that we are in the best possible situation. Gilbert argues that synthetic happiness can provide the same feeling as natural happiness. We have the ability to synthesize happiness in any situation, as a type of “physiological immune system.” He provides some evidence of this finding in the full version of his talk.

He went on to explain that we tend to be happier when our choices are permanent. If we have the option to change our mind and switch, we often torment ourselves on the decision. Once the choice is permanent we grow to appreciate the situation, or item and synthesize happiness. As Gilbert put it, “The psychological immune system works best when we are totally stuck.”

Here’s a quote that fits well with this idea of synthetic happiness from the founder of capitalism himself, Adam Smith: “The great source of both the misery and disorders of human life seems to arise from overrating the difference between one permanent situation and another.”

You can check out the full talk at http://www.ted.com/talks/dan_gilbert_asks_why_are_we_happy.html

It might give you a new perspective, perhaps even put a smile on your face.

Thursday, June 24, 2010

Paralysis by Analysis

It is important not to fall victim to “paralysis by analysis.” Information technology professionals by nature are very analytical and by nature want to analyze everything before taking action. This is clearly important up to a certain point. Sometimes, it is actually beneficial to not see an option and save a tremendous amount of time by not analyzing an option that turns out to be a “rat hole.” As they say “ignorance is bliss.”

More important than avoiding time wasting activities is just having the personal power to make a decision and take action. The joke on these lines is “He won’t take action because that would require a decision.” This problem becomes amplified in larger organizations where there is a culture of zero tolerance for mistakes. Sounds great in theory but when no one is willing to make a decision and take action for fear of making a wrong decision you have “paralysis by analysis.” Everyone starts taking cover on all issues and using CYA as their mantra! There will be meeting after meeting with many planning discussions and meeting notes and maybe even some action items but nothing is really happening.

Being decisive, making decision and then moving forward is absolutely a key for long term success. So how do you handle failure from making the wrong decisions? Mitigate risk and learn from mistakes. Embrace failure! “Fail early, fail often and fail cheap.”

Here is a quote by Charles Bosk, a Sociology Professor at University of Pennsylvania, who spoke with student surgeons and his observation of how they handle mistakes:

"When I interviewed the surgeons who were fired, I used to leave the interview shaking," Bosk said. "I would hear these horrible stories about what they did wrong, but the thing was that they didn't know that what they did was wrong. In my interviewing, I began to develop what I thought was an indicator of whether someone was going to be a good surgeon or not. It was a couple of simple questions: Have you ever made a mistake? And, if so, what was your worst mistake? The people who said, 'Gee, I haven't really had one,' or, 'I've had a couple of bad outcomes but they were due to things outside my control' -- invariably those were the worst candidates. And the residents who said, 'I make mistakes all the time. There was this horrible thing that happened just yesterday and here's what it was.' They were the best. They had the ability to rethink everything that they'd done and imagine how they might have done it differently."

Monday, June 21, 2010

Nicholas Carr: The Internet is Hurting Our Brains

I read an article by Bill Snyder “Nicholas Carr: The Internet is Hurting Our Brains.” The article is discussing the idea Nicholas Carr wrote about in his book “Is Google Making Us Stupid.” The concept is that we are highly distracted on-line jumping around from site to site and this is causing us to lose the ability to focus. I am not sure this is isolated to Google either as it seems to me we are generally in a more interrupt driven society. If you are not running from meeting to meeting, reading through emails and then on the phone pretty much the entire day then what are you doing?

I do find the time to think, read entire articles and write this blog. At the same time I often feel highly distracted and this creates a sense of anxiousness. I often arrive at the end of the day feeling somewhat apprehensive. 5:30 rolls around and I am thinking, “I can’t go home for another couple of hours because I just need to accomplish more to have a productive day.”

Clearly there are plenty of distractions and challenges to staying focused on accomplishing tasks. Is this actually damaging our brains? Maybe it is damaging… and besides it is not great being distracted. So how do you combat this? Here are a few ways to attack this:

1. Schedule time to work on items and do not look at email or take calls.
2. Read emails only once and either take action, delete, file or move to an action folder.
3. Designate a certain amount of time for reading online articles.
4. Participate in activities that do not involve technology – leave the mobile phone behind.
5. Take vacation and don’t check email for a few entire days.

Ok, enough - This is not actually brain surgery. It is an important point and it really goes back to life balance. In this case it is a technology and technology free balance. Nothing really changes – Use to be we worried about the TV frying our brains and now it is the internet!

On that note, I am ready for some technology free summer vacation.

Article in CIO Magazine by Bill Snyder “Nicholas Carr: The Internet is Hurting Our Brains”:
http://www.cio.com/article/597350/Nicholas_Carr_The_Internet_is_Hurting_Our_Brains

Friday, June 18, 2010

General George Casey on Leadership

Last week, I attended a presentation by General George Casey, Army Chief of Staff. General Casey discussed his current role and their goal of restoring health to the Army. He shared the challenges around the kind of warfare we are involved with today versus the past.

General Casey discussed Strategic Leadership. He said “Strategic leaders guide the achievement of their organizational vision within a larger enterprise by:

1. Directing policy and strategy
2. Building consensus
3. Acquiring and allocating resources
4. Influencing organizational culture
5. Shaping external environment
6. Communicating

“They lead by example to:

1. Build an effective organization
2. Grow the next generation
3. Energize subordinates
4. Seek opportunities to advance goals
5. Balance personal and professional demands; a. Read, b. Sleep, c. Exercise, d. Think, e. Personal passion (Hobby, sport)

On reflection, I think this is good stuff. I prefer building commitment to a plan rather than consensus but I suppose this could be semantics. Acquiring and allocating resources is probably more significant in large government organizations. At Nortec we focus more on saving and reducing resources consumed. Culture should probably be at the top but not sure this is supposed to be in order of importance. In business, shaping external environment, I would relate to front line selling and this is clearly key to business success. Communicating the vision is necessary so everyone knows the right direction to be going and this is where clear metrics come into play.

I am a big believer in leading by example and inspiring the team. I enjoyed the presentation and I think General Casey does a great job highlighting the key components to successful leadership.

Now, if I can track down that photo they took of me with the General...

CEO2GOV Summit Event Information:
http://tiny.cc/gycph