My purpose in writing is to communicate The InSource Group’s overall assessment of how the market in the Dallas Ft. Worth metroplex is changing in 2010. This assessment is potentially significant in terms of our client’s abilities to remain competitive with respect to future hires regardless of whether they are employees or contactors; and it also speaks to the challenges associated with employee and contractor retention that have already arisen in 2010.
Without question, demand for new technical resources is up significantly. We began to see an increase in client requirements beginning in December and that trend has continued unabated through February. This is particularly true in the Dallas market where we have seen a 40% increase in requests for technical contractor resources, additionally; full time requests are also up by approximately 17%. This has resulted in many of our candidates being able to pick and choose between multiple job offers. In terms of new hires, speed of response and competiveness of compensation are becoming more critical to our client’s securing the talent that they need.
With respect to retention, the market has changed. 2009 was a buyer’s market. 2010 is shaping up to be a seller’s market. Contractors will have alternatives available to them that were not options last year. They will all be looking at two factors in assessing whether to stay or leave; rate and length of assignment.
In particular, for those contractors who received rate reductions last year, they will be looking to at least have their pre-reduction rates restored. If this is not possible, another alternative may be to extend their assignments for as long as possible. Some contractors have spoken of their willingness to trade a longer commitment for rate dollars. Please recognize that both contractors and full time employees will be receiving calls from recruiters. Retention challenges have increased; how you respond will dictate the outcomes.
Tuesday, March 2, 2010
Tuesday, February 16, 2010
Web 2.0
How Is Web 2.0 Impacting Your Business? Harnessing The Untapped Potential
As an IT recruiting firm, we are constantly studying technology trends that impact our clients and candidates. Nothing in recent history has had as unique an impact on business as social media and the Web 2.0 world. According to a recent survey conducted by computer reseller CDW Corp., nearly half of IT decision-makers have rolled out Web 2.0 tools in their organizations. Businesses that have yet to officially implement these new tools may be surprised at the extent to which their employees use them anyway. Web 2.0 is already impacting your employees and customers. The question is: “Can you leverage these tools to support your business objectives?” In my opinion, your organization should have official plans to weave Web 2.0 tools into the fabric of its operations. However, if official implementation is not on the horizon, management should investigate the potential of these tools and at least set parameters for unofficial use.
Web 2.0 is the broad term for the second generation of the Internet, encompassing interactive tools such as social networking sites, wikis and blogs, that can potentially enhance collaboration, productivity and provide a forum for dialogue. Some of the most common and widely known Web 2.0 companies include Facebook, Twitter, Wikipedia and LinkedIn. Lesser known or up and coming Web 2.0 companies which may be interesting if not instructional to check out include Wetpaint, Kookyplan, Shoutlet and Bzzagent. Web 1.0 made information more accessible to everyone; consequently, hierarchical business structures were flattened. Web 2.0 allows individuals a myriad of new ways to not only find and view information, but also to comment and give input. This new two-way communication further flattens organizations and is ushering in a more meritocratic way of doing business.
Victoria Bracewell Lewis, senior analyst of e-business and channels at Forrester Research said, “As trust in established brands and media fades, consumers turn to one another for advice and validation.” To put it another way, Web 2.0 has everyone talking. This may be unsettling to some business leaders not comfortable with such transparency and free flow of information. However, the magnitude of the Web 2.0 movement can’t be ignored. Consider the growth of Facebook--150 million users expected to double in 2009. The greater risk to a company may be not adopting Web 2.0 tools and having the unofficial use grow both inside and outside the firewall of the company. This phenomenon has motivated more than one organization to officially implement Web 2.0 tools in an effort to have greater input regarding their uses and be better able to monitor and participate in online dialogue.
So what is a company not yet in possession of a clear Web 2.0 strategy to do?
Begin by setting up a structure to address Web 2.0. This does not require a major investment and can be as simple as appointing an existing employee to serve as a part-time project manager to investigate current unofficial Web 2.0 use. The process of uncovering existing unofficial uses is a critical step. Begin by asking questions such as:
• What tools are employees already using to accomplish work-related tasks that you don’t know about?
• Are employees, partners and customers sharing information online that relates to your organization?
• Are there industry forums, wikis or blogs frequented by your organization’s publics?
• Are there unofficial Web 2.0 uses that negatively impact your organization or its productivity?
Once you are more aware of the current Web 2.0 uses which impact your organization, work with employees to identify what existing applications could be effectively exploited to fill a need. Further explore options not yet widely used by employees and open a dialogue with early adopters about how they think such tools could fill a need in the organization. Implementing Web 2.0 tools at the corporate level for the sake of jumping on the bandwagon won’t ensure a benefit to the organization. In fact, implementing tools that employees don’t find relevant could create resentment and division. Take time to find out what Web 2.0 users in your company would like to see officially implemented.
Once you have uncovered an unofficial implementation that seems to have merit, or a real need that could be solved using Web 2.0 tools, implement official testing on a small scale. One of the great things about these new tools is that they are often free. Initial investigation and testing doesn’t necessarily require a major investment. Of course, the cost of implementing major Web 2.0 initiatives can be more significant once you factor in the man-hours necessary, as well as the cost of hardware and bandwidth sometimes required to properly implement these tools on a large scale. Cost alone shouldn’t preclude you from developing a Web 2.0 strategy. You may be missing a major opportunity by ignoring the possibilities out there surrounding this latest iteration of the Internet.
One impressive example of leveraging Web 2.0 is HP’s use of the blogging community. The company simply gave away 31 of its new HDX Dragon computers to influential bloggers. The bloggers ran contests to give away the computers to their readers. The campaign developed a life of its own and sales of HP personal computers jumped 10 percent in one month in 2008.
Although Web 2.0 tools effective for your business can be uncovered by examining existing grassroots uses, the implementation of effective applications requires upper-level buy in. A recent article published in The McKinsey Quarterly online journal examined the early adoption of Web 2.0 tools among 50 organizations and found that successful implementation of Web 2.0 efforts had the backing of upper management. The article asserted that although Web 2.0 application with the most value come from users, management needs to be involved on several levels including identifying applications that are effective and scaling them up. While participation technologies work best when they are initiated as a bottom-up strategy, management that is tuned in to what works and how to encourage proper use of these tools have more success in their implementations.
The McKinsey research also found that one major reason for failure of Web 2.0 initiatives was management’s discomfort with its lack of control over information. Striking a balance between freedom and control can be difficult. The article suggested that although fears are often overblown and social norms tend to enforce proper usage, managers should work with the legal, HR and IT security functions to establish reasonable policies, such as no anonymous postings.
For organizations able to strike the right balance when opening up lines of communications with its many publics there can be huge dividends. Consider the Proctor and Gamble success story. By opening research and development to feedback from outside the organization through Web 2.0 tools, the company was able to increase the success rate of its product launches from 20 percent to almost 80 percent.
Proctor and Gamble and HP’s Web 2.0 uses are dramatic examples of a much larger groundswell. Although the concept of Web 2.0 has taken a few years to come into focus, the time has long past for speculating whether or not Web 2.0 tools are a fad that will burst like the dot com bubble. It’s here, it’s real and it impacts employees and customers whether organizations embrace it or not. Shouldn’t you address Web 2.0’s impact and potential for your business?
As an IT recruiting firm, we are constantly studying technology trends that impact our clients and candidates. Nothing in recent history has had as unique an impact on business as social media and the Web 2.0 world. According to a recent survey conducted by computer reseller CDW Corp., nearly half of IT decision-makers have rolled out Web 2.0 tools in their organizations. Businesses that have yet to officially implement these new tools may be surprised at the extent to which their employees use them anyway. Web 2.0 is already impacting your employees and customers. The question is: “Can you leverage these tools to support your business objectives?” In my opinion, your organization should have official plans to weave Web 2.0 tools into the fabric of its operations. However, if official implementation is not on the horizon, management should investigate the potential of these tools and at least set parameters for unofficial use.
Web 2.0 is the broad term for the second generation of the Internet, encompassing interactive tools such as social networking sites, wikis and blogs, that can potentially enhance collaboration, productivity and provide a forum for dialogue. Some of the most common and widely known Web 2.0 companies include Facebook, Twitter, Wikipedia and LinkedIn. Lesser known or up and coming Web 2.0 companies which may be interesting if not instructional to check out include Wetpaint, Kookyplan, Shoutlet and Bzzagent. Web 1.0 made information more accessible to everyone; consequently, hierarchical business structures were flattened. Web 2.0 allows individuals a myriad of new ways to not only find and view information, but also to comment and give input. This new two-way communication further flattens organizations and is ushering in a more meritocratic way of doing business.
Victoria Bracewell Lewis, senior analyst of e-business and channels at Forrester Research said, “As trust in established brands and media fades, consumers turn to one another for advice and validation.” To put it another way, Web 2.0 has everyone talking. This may be unsettling to some business leaders not comfortable with such transparency and free flow of information. However, the magnitude of the Web 2.0 movement can’t be ignored. Consider the growth of Facebook--150 million users expected to double in 2009. The greater risk to a company may be not adopting Web 2.0 tools and having the unofficial use grow both inside and outside the firewall of the company. This phenomenon has motivated more than one organization to officially implement Web 2.0 tools in an effort to have greater input regarding their uses and be better able to monitor and participate in online dialogue.
So what is a company not yet in possession of a clear Web 2.0 strategy to do?
Begin by setting up a structure to address Web 2.0. This does not require a major investment and can be as simple as appointing an existing employee to serve as a part-time project manager to investigate current unofficial Web 2.0 use. The process of uncovering existing unofficial uses is a critical step. Begin by asking questions such as:
• What tools are employees already using to accomplish work-related tasks that you don’t know about?
• Are employees, partners and customers sharing information online that relates to your organization?
• Are there industry forums, wikis or blogs frequented by your organization’s publics?
• Are there unofficial Web 2.0 uses that negatively impact your organization or its productivity?
Once you are more aware of the current Web 2.0 uses which impact your organization, work with employees to identify what existing applications could be effectively exploited to fill a need. Further explore options not yet widely used by employees and open a dialogue with early adopters about how they think such tools could fill a need in the organization. Implementing Web 2.0 tools at the corporate level for the sake of jumping on the bandwagon won’t ensure a benefit to the organization. In fact, implementing tools that employees don’t find relevant could create resentment and division. Take time to find out what Web 2.0 users in your company would like to see officially implemented.
Once you have uncovered an unofficial implementation that seems to have merit, or a real need that could be solved using Web 2.0 tools, implement official testing on a small scale. One of the great things about these new tools is that they are often free. Initial investigation and testing doesn’t necessarily require a major investment. Of course, the cost of implementing major Web 2.0 initiatives can be more significant once you factor in the man-hours necessary, as well as the cost of hardware and bandwidth sometimes required to properly implement these tools on a large scale. Cost alone shouldn’t preclude you from developing a Web 2.0 strategy. You may be missing a major opportunity by ignoring the possibilities out there surrounding this latest iteration of the Internet.
One impressive example of leveraging Web 2.0 is HP’s use of the blogging community. The company simply gave away 31 of its new HDX Dragon computers to influential bloggers. The bloggers ran contests to give away the computers to their readers. The campaign developed a life of its own and sales of HP personal computers jumped 10 percent in one month in 2008.
Although Web 2.0 tools effective for your business can be uncovered by examining existing grassroots uses, the implementation of effective applications requires upper-level buy in. A recent article published in The McKinsey Quarterly online journal examined the early adoption of Web 2.0 tools among 50 organizations and found that successful implementation of Web 2.0 efforts had the backing of upper management. The article asserted that although Web 2.0 application with the most value come from users, management needs to be involved on several levels including identifying applications that are effective and scaling them up. While participation technologies work best when they are initiated as a bottom-up strategy, management that is tuned in to what works and how to encourage proper use of these tools have more success in their implementations.
The McKinsey research also found that one major reason for failure of Web 2.0 initiatives was management’s discomfort with its lack of control over information. Striking a balance between freedom and control can be difficult. The article suggested that although fears are often overblown and social norms tend to enforce proper usage, managers should work with the legal, HR and IT security functions to establish reasonable policies, such as no anonymous postings.
For organizations able to strike the right balance when opening up lines of communications with its many publics there can be huge dividends. Consider the Proctor and Gamble success story. By opening research and development to feedback from outside the organization through Web 2.0 tools, the company was able to increase the success rate of its product launches from 20 percent to almost 80 percent.
Proctor and Gamble and HP’s Web 2.0 uses are dramatic examples of a much larger groundswell. Although the concept of Web 2.0 has taken a few years to come into focus, the time has long past for speculating whether or not Web 2.0 tools are a fad that will burst like the dot com bubble. It’s here, it’s real and it impacts employees and customers whether organizations embrace it or not. Shouldn’t you address Web 2.0’s impact and potential for your business?
Saturday, January 30, 2010
Instilling a Return on Investment Mindset In Our College Bound Children
How to Get Your Child Off of Your Payroll and On To Someone Else’s
Like most high school juniors, my daughter has no idea what her college major will be, much less what she’ll wind up doing for a living. And like most parents, I can be politically correct and say, “I just want her to be happy.” However, the ideal solution, of course, is for her to be happy and self-supporting. But given today’s economy, a college degree does not always ensure self-sufficiency as an outcome. As proof, talk to the baristas at your local Starbucks: they may be even better educated than you.
This issue hit home a few weeks ago, when my wife and daughter went off to their first college visit. Given the fact that we are probably talking about an investment in the $250K range, it seemed only reasonable that I give this a little thought, despite the fact that my signature on the checks will not allow me access to my child’s grades.
So I started thinking about how to help my daughter apply a return on investment (ROI) mindset to her education. A challenge – especially since her current prevailing interests in college visits revolve around shopping, socializing, texting and dining out.
I want to increase my daughter’s awareness of the importance of considering choices and consequence. In business terms, I want her to focus on achieving returns and a desired outcome. This mindset will serve her well in life, regardless of her career path. So I offer three recommendations for those of us faced with helping our children maximize their investment in future independence.
First, help your child define their expectations regarding the outcomes of their college experience. What kind of lifestyle do they hope to lead? Where would they like to live? Do they have a career path in mind? All of these things should impact their decision on where to go to school and how they will need to apply themselves during their undergraduate years. College is an opportunity to gain tools and knowledge in order to have a rich and successful life. Beginning with clear expectations in mind will help them focus their efforts and narrow their choices in directing their college experience. I am not suggesting that helping them achieve a clear set of expectations will happen in one conversation—start now, their expectations will evolve, but the process could take some time.
Second, educate your child on the reality that a college degree is not the only factor considered in the hiring process. We can help our kids by having them consider how they will differentiate themselves from the competition during their college career. Internships, research projects, multiple majors, summer jobs, team projects and charitable activities are some examples of choices they can make or activities they can become involved in that will help them stand out from the crowd. Future employers will look beyond the college degree to see what they have done that demonstrates a strong work ethic, the ability to apply themselves to a task despite adversity, and work productively as a team member. Helping your child to understand this will give them a tremendous leg up in securing a reasonably well paying job and beginning on the path of a promising career.
Third, just like they will be held accountable in work force, we should help our kids understand that they need to hold themselves to an acceptable level of performance: otherwise, they will be limiting their future opportunities. A 2.0 grade point average will not land them great internships, a place on a professor’s research project, or a space on the sign up sheets for corporate interviews. Average performance will lead to average opportunities that will seriously limit future options and most likely curtail achievement of desired outcomes.
I think parents can do more for their kids by helping them achieve an ROI mindset, than the writing of a check could ever do. By helping my daughter define her desired outcomes and understand the impact the choices she makes will have on those outcomes, I hope to help her build her own prosperous future.
Like most high school juniors, my daughter has no idea what her college major will be, much less what she’ll wind up doing for a living. And like most parents, I can be politically correct and say, “I just want her to be happy.” However, the ideal solution, of course, is for her to be happy and self-supporting. But given today’s economy, a college degree does not always ensure self-sufficiency as an outcome. As proof, talk to the baristas at your local Starbucks: they may be even better educated than you.
This issue hit home a few weeks ago, when my wife and daughter went off to their first college visit. Given the fact that we are probably talking about an investment in the $250K range, it seemed only reasonable that I give this a little thought, despite the fact that my signature on the checks will not allow me access to my child’s grades.
So I started thinking about how to help my daughter apply a return on investment (ROI) mindset to her education. A challenge – especially since her current prevailing interests in college visits revolve around shopping, socializing, texting and dining out.
I want to increase my daughter’s awareness of the importance of considering choices and consequence. In business terms, I want her to focus on achieving returns and a desired outcome. This mindset will serve her well in life, regardless of her career path. So I offer three recommendations for those of us faced with helping our children maximize their investment in future independence.
First, help your child define their expectations regarding the outcomes of their college experience. What kind of lifestyle do they hope to lead? Where would they like to live? Do they have a career path in mind? All of these things should impact their decision on where to go to school and how they will need to apply themselves during their undergraduate years. College is an opportunity to gain tools and knowledge in order to have a rich and successful life. Beginning with clear expectations in mind will help them focus their efforts and narrow their choices in directing their college experience. I am not suggesting that helping them achieve a clear set of expectations will happen in one conversation—start now, their expectations will evolve, but the process could take some time.
Second, educate your child on the reality that a college degree is not the only factor considered in the hiring process. We can help our kids by having them consider how they will differentiate themselves from the competition during their college career. Internships, research projects, multiple majors, summer jobs, team projects and charitable activities are some examples of choices they can make or activities they can become involved in that will help them stand out from the crowd. Future employers will look beyond the college degree to see what they have done that demonstrates a strong work ethic, the ability to apply themselves to a task despite adversity, and work productively as a team member. Helping your child to understand this will give them a tremendous leg up in securing a reasonably well paying job and beginning on the path of a promising career.
Third, just like they will be held accountable in work force, we should help our kids understand that they need to hold themselves to an acceptable level of performance: otherwise, they will be limiting their future opportunities. A 2.0 grade point average will not land them great internships, a place on a professor’s research project, or a space on the sign up sheets for corporate interviews. Average performance will lead to average opportunities that will seriously limit future options and most likely curtail achievement of desired outcomes.
I think parents can do more for their kids by helping them achieve an ROI mindset, than the writing of a check could ever do. By helping my daughter define her desired outcomes and understand the impact the choices she makes will have on those outcomes, I hope to help her build her own prosperous future.
Friday, December 18, 2009
Keeping Morale High
Morale, Productivity Go Hand in Hand
In a slow economy, IT departments often tend to scale back new initiatives, cut projects and just maintain the necessary functions of the business in effort to limit expenses. However, such measures can drain employee morale and be highly counter productive to the success of your department.
A critical component of surviving, and even thriving, in a downturn is to protect employee morale. Let’s face it, when coworkers are being let go and budgets cut, remaining employees are at risk of wasting a lot of energy worrying about their own job security. Here are some tips to set a proactive course of action towards maintaining employee morale and preserving the productivity of your IT department.
1. Keep the lines of communication open wide. You don’t want employees in the dark over the current status of the business, or constantly looking over their shoulder wondering if their jobs are secure. Face-to-face communications is best to keep employees in the loop, and remember to spend as much time listening as you do talking.
2. Focus on new initiatives that improve productivity, eliminate waste and further align IT objectives with the business. Looking ahead to new opportunities keeps people busy and optimistic.
3. Establish rewards for ingenuity, particularly those that save the company money. Encourage thoughtful risk taking. Nothing kills creativity faster than fear of failure.
4. Continue training and employee development programs. These don’t have to be costly. Consider training offered by vendors or training provided by your own employees.
5. Encourage your IT department to keep current. Even if software, system or equipment upgrades are not in the budget this year, staying on top of the latest IT tools to consider in the future will help employees keep their eyes on the horizon.
Morale and productivity go hand in hand. Protect the morale of your employees and you will help to ensure your IT department remains productive through difficult economic times.
In a slow economy, IT departments often tend to scale back new initiatives, cut projects and just maintain the necessary functions of the business in effort to limit expenses. However, such measures can drain employee morale and be highly counter productive to the success of your department.
A critical component of surviving, and even thriving, in a downturn is to protect employee morale. Let’s face it, when coworkers are being let go and budgets cut, remaining employees are at risk of wasting a lot of energy worrying about their own job security. Here are some tips to set a proactive course of action towards maintaining employee morale and preserving the productivity of your IT department.
1. Keep the lines of communication open wide. You don’t want employees in the dark over the current status of the business, or constantly looking over their shoulder wondering if their jobs are secure. Face-to-face communications is best to keep employees in the loop, and remember to spend as much time listening as you do talking.
2. Focus on new initiatives that improve productivity, eliminate waste and further align IT objectives with the business. Looking ahead to new opportunities keeps people busy and optimistic.
3. Establish rewards for ingenuity, particularly those that save the company money. Encourage thoughtful risk taking. Nothing kills creativity faster than fear of failure.
4. Continue training and employee development programs. These don’t have to be costly. Consider training offered by vendors or training provided by your own employees.
5. Encourage your IT department to keep current. Even if software, system or equipment upgrades are not in the budget this year, staying on top of the latest IT tools to consider in the future will help employees keep their eyes on the horizon.
Morale and productivity go hand in hand. Protect the morale of your employees and you will help to ensure your IT department remains productive through difficult economic times.
Thursday, November 5, 2009
How far have we Come?
Consider the following:
On December 14, 1799, when George Washington died, it took the information seven days to travel 240 miles from northern Virginia to New York . The speed with which information travelled was largely determined by the speed of transportation. News traveled only as fast as people, whether by messenger, the mail, or the shipment of newspapers.
Excerpted from: The First Tycoon, The Epic Life of Cornelius Vanderbilt by T.J. Stiles.
I highly recommend this book.
Tuesday, October 13, 2009
Keep the Shore in Sight: Maintaining A Healthy Perpective In Tough Economic Times
This article was published in the September 11, 2009 Dallas Business Journal
Regardless of the personal challenges the recession has thrown your way, one thing is certain: you cannot control current market conditions. Market forces have aligned in unprecedented ways to create a problem more powerful than any one individual. Unemployment stands at 8.9 percent nationally and is likely to exceed 10 percent. Worldwide GDP is contracting and no one is sure when it will hit bottom.
This economy is like a riptide. You can’t swim against the current and survive. For those who have experienced serious setbacks in their career or in their business’s performance, staying afloat in today’s economic environment requires a healthy perspective. Through my years of management experience in expanding and contracting economies, I have witnessed firsthand the difference between individuals with healthy, productive perspectives and those who are so weighed down by career setbacks they can’t recover. You must keep the shore in sight and remember things will eventually get better. You must foster a healthy outlook through setbacks.
Begin by shedding the emotional baggage that could weigh you down. Whether or not you are to blame for your current situation, there is nothing productive about holding on to the guilt, fear or shame often associated with business struggles or a serious career setback. Ask yourself some tough questions. Make a clear-eyed assessment of what happened so you can learn from your mistakes. Then move on. Holding on to unproductive emotions can interfere with your ability to be effective.
You may need to redefine what success looks like. This economy has presented today’s business world with a new reality in which to operate and it can be difficult to get your bearings. Take a careful look at your business and then look outside your organization at the performance of other businesses in your industry as well as those related to your industry. You must come to a clear understanding of what is within your ability to control and what is not. This will help you to better understand your options and define new goals and objectives.
Attempting to meet pre-recession metrics by simply working harder may not be possible. When faced with tough situations there is a tendency for hard-driving professionals (accustomed to being in control of their destiny) to go into default mode—meaning they rely heavily upon the very characteristics they attribute to their success and career advancement. They push harder and demand more from themselves and those around them in an effort to sustain previous performance. In other words, they are swimming against the current. Stay afloat with smart proactive measures, but don’t wear yourself out and those around you by fighting what is out of your control.
You also may need to rebalance your priorities. How do you define yourself? Are you a CEO, CIO, Director, Manager, Programmer? If your title goes away, how would you introduce yourself? What else are you good at? If you have never defined your existence beyond your job, rebalancing your priorities may be a difficult task. Finding meaning beyond the straight ascending line of your career path is critical, because chances are before we recover from this recession many individuals’ careers will look more like a sine wave.
You can view a career setback as an opportunity. Make this a defining moment. Tough times and how you deal with them will define you in new ways. Staying afloat during the current recession will necessitate learning new skills. The way you operate in a burgeoning economy is different from how you must operate in this recession. The uniqueness of what you are faced with will provide you with experience that you would have never otherwise gained. When recovery occurs, you will be able to leverage your new knowledge into greater success.
The recovery will happen. In the meantime, adopt a perspective that will enable you to swim with the current and keep the shore in sight. Shed the emotional baggage, redefine what success looks like, reprioritize and look at what the economy has dealt you as a defining moment in your life. Formulate a healthy outlook that will help you come out of this trying time having gained invaluable experience.
Regardless of the personal challenges the recession has thrown your way, one thing is certain: you cannot control current market conditions. Market forces have aligned in unprecedented ways to create a problem more powerful than any one individual. Unemployment stands at 8.9 percent nationally and is likely to exceed 10 percent. Worldwide GDP is contracting and no one is sure when it will hit bottom.
This economy is like a riptide. You can’t swim against the current and survive. For those who have experienced serious setbacks in their career or in their business’s performance, staying afloat in today’s economic environment requires a healthy perspective. Through my years of management experience in expanding and contracting economies, I have witnessed firsthand the difference between individuals with healthy, productive perspectives and those who are so weighed down by career setbacks they can’t recover. You must keep the shore in sight and remember things will eventually get better. You must foster a healthy outlook through setbacks.
Begin by shedding the emotional baggage that could weigh you down. Whether or not you are to blame for your current situation, there is nothing productive about holding on to the guilt, fear or shame often associated with business struggles or a serious career setback. Ask yourself some tough questions. Make a clear-eyed assessment of what happened so you can learn from your mistakes. Then move on. Holding on to unproductive emotions can interfere with your ability to be effective.
You may need to redefine what success looks like. This economy has presented today’s business world with a new reality in which to operate and it can be difficult to get your bearings. Take a careful look at your business and then look outside your organization at the performance of other businesses in your industry as well as those related to your industry. You must come to a clear understanding of what is within your ability to control and what is not. This will help you to better understand your options and define new goals and objectives.
Attempting to meet pre-recession metrics by simply working harder may not be possible. When faced with tough situations there is a tendency for hard-driving professionals (accustomed to being in control of their destiny) to go into default mode—meaning they rely heavily upon the very characteristics they attribute to their success and career advancement. They push harder and demand more from themselves and those around them in an effort to sustain previous performance. In other words, they are swimming against the current. Stay afloat with smart proactive measures, but don’t wear yourself out and those around you by fighting what is out of your control.
You also may need to rebalance your priorities. How do you define yourself? Are you a CEO, CIO, Director, Manager, Programmer? If your title goes away, how would you introduce yourself? What else are you good at? If you have never defined your existence beyond your job, rebalancing your priorities may be a difficult task. Finding meaning beyond the straight ascending line of your career path is critical, because chances are before we recover from this recession many individuals’ careers will look more like a sine wave.
You can view a career setback as an opportunity. Make this a defining moment. Tough times and how you deal with them will define you in new ways. Staying afloat during the current recession will necessitate learning new skills. The way you operate in a burgeoning economy is different from how you must operate in this recession. The uniqueness of what you are faced with will provide you with experience that you would have never otherwise gained. When recovery occurs, you will be able to leverage your new knowledge into greater success.
The recovery will happen. In the meantime, adopt a perspective that will enable you to swim with the current and keep the shore in sight. Shed the emotional baggage, redefine what success looks like, reprioritize and look at what the economy has dealt you as a defining moment in your life. Formulate a healthy outlook that will help you come out of this trying time having gained invaluable experience.
Friday, September 4, 2009
Managing IT resources in a difficult economy
Appeared in Fort Worth Business Press BY JAMES E. THOMPSON
Organizations that survive and end up thriving through a downturn resist the temptation to take only defensive measures. They develop aggressive offensive strategies as well. Successful businesses strike a balance between cost containment and capitalizing on new opportunities that present themselves. They are innovative and find new ways to provide value to customers. In addition, they take advantage of the greater availability of talented people in the job market. Smart organizations remain flexible and astute in order to react decisively to the changing landscape.
A proactive approach to managing your IT department is a good offensive strategy. Begin by renewing IT’s relationship to the business side of the organization. Closely examine where IT is legitimately adding value and how IT initiatives are helping the organization achieve competitive advantages. Scrutinize every aspect of your department (infrastructure, legacy systems, databases and application development) and then reprioritize your initiatives, keeping in mind the key business drivers the organization will be using in its decision making process.
Next, foster innovation. Research conducted by the consulting firm Accenture shows that a company’s ability to view the tools and resources they already had from an innovative perspective was key to success through the last downturn. In fact, the ability to innovate in a way that strengthened a company’s strategic position was second only to a healthy financial position prior to recession in determining whether the company would come out ahead.
Opportunities to innovate abound in a downturn. Maximizing your existing IT assets and finding new uses for resources already in place has historically paid off for organizations willing to think outside the box and take decisive action in a timely manner. These innovations can be seemingly simple concepts. According to Jean-Phillipe, president of Microsoft International, companies can reduce the number of servers by running more applications per server. Another cost-savings innovation is the implementation of employee mobility strategies that help to reduce travel expenses, as well as increase flexibility in talent recruitment and retention. Advanced Internet applications commonly known as Web 2.0, provide a variety of avenues for creative problem solving and innovation.
Calculated investments in new IT systems and projects also can boost a company’s ability to succeed in a tight economy. The Accenture research found that successful companies invested in new information systems that provided insight into value drivers. According to a recent Forbes article, “As the economic cycle inevitably shifts upward, companies who have dropped the innovation ball will find their fortunes sagging just as the economy surges.”
Finally, it is time to assess your people. Many organizations currently are in a holding pattern when it comes to their IT talent.
The InSource Group recently conducted an informal survey of companies in the Dallas area regarding their hiring plans. The majority of respondents indicated they were not planning on major changes to their IT talent and most hiring plans were conservative. These responses were not unexpected and in all probability these organizations are waiting on further economic data to make decisions before making bold decisions. While this is predictable, businesses can put too much weight on economic data. Remember such data reflects what has already happened and smart managers look ahead; not in the rear view mirror. Thoughtful, educated projections are required for employing smart resource management strategies.
A down economy is an excellent time for a cost effective talent upgrade because more IT professionals are available. It is also a good time for outsourcing contracts. Managing budgets and timelines of outsourced projects can be easier than containing the head count, costs and timelines of in house projects.
In a difficult economy, the reality is that companies may feel the need to reduce their IT talent. However, it is not productive for an organization to cut or freeze hiring across the board without a thorough and comprehensive review of its talent position by position. The complexities to be considered include preserving subject matter expertise that is critical to your organization and ensuring that the poorest performers are targeted, rather than simply the talent working on redundant initiatives.
Cost containment is important, but must be done with business drivers in mind. Ultimately, those companies that view the current economic environment as an opportunity to refocus on business drivers and stretch the organization’s capacity for innovation will weather the storm and inevitably be better positioned for the economic upturn.
Organizations that survive and end up thriving through a downturn resist the temptation to take only defensive measures. They develop aggressive offensive strategies as well. Successful businesses strike a balance between cost containment and capitalizing on new opportunities that present themselves. They are innovative and find new ways to provide value to customers. In addition, they take advantage of the greater availability of talented people in the job market. Smart organizations remain flexible and astute in order to react decisively to the changing landscape.
A proactive approach to managing your IT department is a good offensive strategy. Begin by renewing IT’s relationship to the business side of the organization. Closely examine where IT is legitimately adding value and how IT initiatives are helping the organization achieve competitive advantages. Scrutinize every aspect of your department (infrastructure, legacy systems, databases and application development) and then reprioritize your initiatives, keeping in mind the key business drivers the organization will be using in its decision making process.
Next, foster innovation. Research conducted by the consulting firm Accenture shows that a company’s ability to view the tools and resources they already had from an innovative perspective was key to success through the last downturn. In fact, the ability to innovate in a way that strengthened a company’s strategic position was second only to a healthy financial position prior to recession in determining whether the company would come out ahead.
Opportunities to innovate abound in a downturn. Maximizing your existing IT assets and finding new uses for resources already in place has historically paid off for organizations willing to think outside the box and take decisive action in a timely manner. These innovations can be seemingly simple concepts. According to Jean-Phillipe, president of Microsoft International, companies can reduce the number of servers by running more applications per server. Another cost-savings innovation is the implementation of employee mobility strategies that help to reduce travel expenses, as well as increase flexibility in talent recruitment and retention. Advanced Internet applications commonly known as Web 2.0, provide a variety of avenues for creative problem solving and innovation.
Calculated investments in new IT systems and projects also can boost a company’s ability to succeed in a tight economy. The Accenture research found that successful companies invested in new information systems that provided insight into value drivers. According to a recent Forbes article, “As the economic cycle inevitably shifts upward, companies who have dropped the innovation ball will find their fortunes sagging just as the economy surges.”
Finally, it is time to assess your people. Many organizations currently are in a holding pattern when it comes to their IT talent.
The InSource Group recently conducted an informal survey of companies in the Dallas area regarding their hiring plans. The majority of respondents indicated they were not planning on major changes to their IT talent and most hiring plans were conservative. These responses were not unexpected and in all probability these organizations are waiting on further economic data to make decisions before making bold decisions. While this is predictable, businesses can put too much weight on economic data. Remember such data reflects what has already happened and smart managers look ahead; not in the rear view mirror. Thoughtful, educated projections are required for employing smart resource management strategies.
A down economy is an excellent time for a cost effective talent upgrade because more IT professionals are available. It is also a good time for outsourcing contracts. Managing budgets and timelines of outsourced projects can be easier than containing the head count, costs and timelines of in house projects.
In a difficult economy, the reality is that companies may feel the need to reduce their IT talent. However, it is not productive for an organization to cut or freeze hiring across the board without a thorough and comprehensive review of its talent position by position. The complexities to be considered include preserving subject matter expertise that is critical to your organization and ensuring that the poorest performers are targeted, rather than simply the talent working on redundant initiatives.
Cost containment is important, but must be done with business drivers in mind. Ultimately, those companies that view the current economic environment as an opportunity to refocus on business drivers and stretch the organization’s capacity for innovation will weather the storm and inevitably be better positioned for the economic upturn.
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