February 27, 2006

"WHY DOES PROJECT MANAGEMENT FAIL?"

In all of my travels, I often run into companies who ask the same question, "Why can't we get our act together? Why does Project Management routinely fail in our company?"

I don't believe a company's overall problems in Project Management can be attributed to a specific tool or technique (although some certainly do not help matters). Instead, I believe it is based on how important a company considers Project Management to be. If they believe it to be a vital part of the company's overall performance, it will be more successful than a company who considers it irrelevant. In other words, I view Project Management as an integral part of the corporate culture.

Let's consider the indicators of how a company values Project Management:

* LACK OF KNOWLEDGE - employees simply lack the basic knowledge of the mechanics of Project Management. I don't run into too many companies anymore with a total absence of knowledge in this regard. The conceptual foundation of Project Management has been around for a number of years. There is a multitude of training programs in Project Management, both at the college and commercial level. There are also several discussion groups on the Internet and professional associations dealing with this subject (e.g., the Project Management Institute of Newtown Square, PA). Hiring or contracting people with absolutely no knowledge of basic Project Management concepts is becoming a rarity.

* LACK OF ORGANIZATIONAL POLICY - the company has not adopted a formal policy for managing projects. Consequently, informal and inconsistent approaches to project management are used with mixed results. This is a much more common occurrence than finding a company devoid of knowledge in Project Management.

* LACK OF ENFORCEMENT OF POLICY AND PROCEDURES - even though a policy has been established, it is not enforced. As a result, inconsistent results emerge. If a standard and consistent approach to Project Management is devised by a company, it must be routinely policed in order to assure accuracy and uniform results. It is one thing to enact legislation, quite another to enforce it.

* LACK OF CONSIDERATION FOR THE MAGNITUDE AND COMPLEXITIES OF PROJECT MANAGEMENT AND ATTACK IT IN PIECE MEAL - People seem to naturally underestimate the magnitude of project management. For example, project planning involves defining work breakdown structures and dependencies which is a precursor to estimating, scheduling, reporting and control; estimating is a prerequisite to scheduling; time reporting impacts project estimates and schedules; resource allocation is based on availability of qualified people (skills inventory) and current project schedules; etc. There is an overwhelming number of software packages on the market attacking various aspects of Project Management, but very few addressing it as an integrated whole.

It must be remembered that project management is first and foremost a philosophy of management, not an elaborate set of tools and techniques, nor is it an administrative function. Rather, it is concerned with managing human beings towards the accomplishment of work (it is a "people management" function). As such, project management will only be as effective as the people who use it.

Ultimately, project management represents DISCIPLINE, ORGANIZATION, and ACCOUNTABILITY; which are three areas people seem to have a natural aversion to these days.

LET'S CONSIDER ALL THREE

DISCIPLINE - In the western world, people tend to resist discipline because some believe it inhibits creativity and personal freedom. As a result, teamwork is often sacrificed in favor of rugged individualism.

ORGANIZATION - Pursuant to discipline is the problem of organization. Again, in the western world, people prefer to maintain their own identity and organize themselves to meet their needs as opposed to the needs of the organization. There are also those who claim, "A cluttered desk is the sign of a brilliant mind." Hogwash. In contrast, I am a believer of the Navy's regimen whereby you either work on something, file it, or throw it away. This forces people to get organized. If we need more files, let's get them. A cluttered desk is a sign of a disorganized person. Shape up, or ship out.

ACCOUNTABILITY is an area people tend to rebel against the most. The approach to project management, as advocated by "PRIDE," ultimately represents visibility and responsibility to produce according to plan. Unfortunately, some people shun commitments and, instead, prefer to hide their activity, thereby they cannot be measured and evaluated. This is typically the reaction of people who are insecure. People who are confident in their abilities have no problem with the accountability issue.

REACTIVE VS. ACTIVE MANAGEMENT

The old adage, "If you do not make the decision, the decision will be made for you," is valid. This also sums up the difference between an active and a reactive manager. True Project Management requires an "active" manager, not "reactive." The active manager takes care of the problems before they happen. They plan on the future. The reactive manager deals with yesterday and waits until problems occur, then tries to take care of them. Today, more and more IT organizations find themselves in a constant "firefighting" mode of operation. Why? Because of a "reactive" management style. The "reactive" manager never seems to get ahead, yet probably enjoys the highest visibility in the company. As an aside, beware of your "firefighters," they are probably your chief arsonists.

Managers don't wait for things to happen, they make things happen.

HOW MUCH PROJECT MANAGEMENT IS NECESSARY?

Can the philosophies of project management be adopted and implemented by a single group of people for a single project? Yes. A department or division? Certainly. The entire company? Definitely. In fact, as the scope grows, communications improves and the philosophy is more consistently applied.

The scope of project management affects many people:

* The individual worker will prepare estimates and schedules, perform project work, and report on activities.

* The project manager will plan and direct the use of resources on projects, and solve problems.

* Department managers will administer resources and control projects within an area.

* Executive management will establish project priorities and monitor project progress.

Obviously, project management should not be restricted to a handful of people or projects. Dozens of projects may be active at any one time, involving hundreds of workers across departmental boundaries. Synchronization of the work effort is required to maximize effect and minimize confusion. Project management, therefore, should be viewed as a corporate philosophy as opposed to a technique used by a select few. Only when a standard and consistent approach to Project Management is adopted by a company will it become an integral part of the corporate culture. We will then hear less about why Project Management fails, and more of how the company is prospering.

OUR BRYCE'S LAW OF THE WEEK therefore is...
"It is one thing to enact legislation, quite another to enforce it."

IN OUR "DOWN THE ROAD" SECTION

On March 6th-8th, the Gartner Business Intelligence Summit 2006 will be held at the Hyatt Regency in Chicago, IL. For info, contact Gartner at 203/316-6757

The Quality Assurance Institute will be holding its 26th Annual Quality Conference at the Rosen Plaza Hotel in Orlando, FL on April 24th - 28th. For information, contact the Institute in Orlando at 407/363-1111.

The World Conference on Quality and Improvement will be held May 1st-3rd at the Midwest Airlines Center in Milwaukee, WI. For information, contact the American Society for Quality at 800-248-1946 or 414/272-8575.

The 15th World Congress on Information Technology will be held May 1st - 5th in Austin, TX. For information, call 512/505-4077.

The 17th International Conference of the Information Resource Management Association will be held May 21st-24th at the Wyndham Hotel in Washington D.C. For information, call IRMA headquarters in PA at 717/533-8879

If you have got an upcoming IRM related event you want mentioned, please e-mail the date, time and location of the event to timb001@phmainstreet.com

MY "PET PEEVE OF THE WEEK" IS "SPAM PHONE CALLS"

Like many of you, I signed up for the national unsolicited phone call blocking system last year. And, Yes, it did cut down on the phone calls, but it amazes me that "Spam phone calls" somehow still get through. I still get calls both at home and at the office from headhunters, investment brokers, realtors, and credit card companies. I find it particularly amusing when I get a call and there isn't a human-being on the other end but a taped message instead. Its hard to thwart these calls, but I haven't given up trying.

I kind of like the approach used by Jerry Seinfeld on his television show a few years ago, where he got a spam phone call. Jerry interrupted the caller and said something to the effect of, "Gee, I would really like to discuss this further with you, but I'm tied up right now, can I call you at home later tonight? No? You don't take phone calls at home? Now you know how I feel."

I just wish it was as easy to contact a human-being through today's voice-mail systems as it is to get a spam phone call.

But then again, what do I know?

Such is my Pet Peeve of the Week.

AND FINALLY...

I received an e-mail from a Judy Thurman in New Jersey who wrote me regarding last week's essay on "Creating an Information Factory."
Bernie writes:

"You make a compelling argument in terms of structuring a development environment into a factory-like environment, but don't you find people have a problem accepting this?"

Thanks Judy for your note,
Yes, programmers have a problem understanding basic engineering/manufacturing concepts. What is necessary is to change their orientation from thinking in terms of writing source code to building products. This is very difficult for the average programmer to assimilate. Nonetheless, the intent of the Information Factory concept is to turn a heterogeneous development into a homogeneous environment thereby getting everyone rowing on the same oar. The benefits far outweigh the disadvantages.

Again, Thanks for your e-mail. Keep those cards and letters coming.

Folks, don't forget to check out our BRYCE'S CRASH COURSE IN MANAGEMENT which is a free on-line multimedia presentation offering pragmatic advice on how to discharge the duties of a manager, whether it be for a commercial or non-profit enterprise. Frankly, for someone aspiring to be a manager or for a new manager, it will be the best 45 minutes you can invest in yourself. Check it out on the cover of our corporate web page at: http://www.phmainstreet.com/mba

For a complete listing of my essays, see the "PRIDE" Special Subject Bulletins section of our corporate web site.

MBA is an international management consulting firm specializing in Information Resource Management. We offer training, consulting, and writing services in the areas of Enterprise Engineering, Systems Engineering, Data Base Engineering, Project Management, Methodologies and Repositories. For information, call us at 727/786-4567.

Our corporate web page is at:

http://phmainstreet.com/mba/

Management Visions is a presentation of M. Bryce & Associates, a division of M&JB Investment Company of Palm Harbor, Florida, USA. The program is produced on a weekly basis and updated on Sundays. It is available in versions for RealPlayer, Microsoft Media Player, and MP3 suitable for Podcasting. See our web site for details. You'll find our broadcast listed in several Podcast and Internet Search engines, as well as Apples' iTunes.

If you have any questions or would like to be placed on our e-mailing list to receive notification of future broadcasts, please e-mail it to timb001@phmainstreet.com

For a copy of past broadcasts, please contact me directly.

We accept MP3 files with your voice for possible inclusion in the broadcast.

Management Visions accepts advertising. For rates, please contact yours truly directly.

Copyright © 2006 by M&JB Investment Company of Palm Harbor, Florida, USA. All rights reserved. "PRIDE" is the registered trademark of M&JB Investment Company.

This is Tim Bryce reporting.

Since 1971: "Software for the finest computer - the Mind."

END

February 20, 2006

"CREATING AN INFORMATION FACTORY"

Back in the early 1980's, Japan's Ministry of International Trade & Industry (MITI) coordinated a handful of Japanese computer manufacturers in establishing a special environment for producing system software, such as operating systems and compilers. This effort came to be known as Japanese "Software Factories" which captured the imagination of the industry. Although the experiment ended with mixed results, they discovered organization and discipline could dramatically improve productivity.

Why the experiment? Primarily because the Japanese recognized there are fundamentally two approaches to manufacturing anything: "one at a time" or mass production. Both are consistent approaches that can produce a high quality product. The difference resides in the fact mass production offers increased volume at lower costs. In addition, workers can be easily trained and put into production. On the other hand, the "one at a time" approach is slower and usually has higher costs. It requires workers to be intimate with all aspects of the product. Which is the most appropriate approach for a development organization to take? That depends on the organization's perspective of systems development.

ART VERSUS SCIENCE

There are those who believe systems development to be some sort of art-form requiring peculiar knowledge and skills to perform. There are significant differences between an "art" and a "science." An "art" depends on an individual's intuitive instincts about a particular subject. Such intuition is difficult to teach and apply in a consistent manner. An art-form, by definition, implies nonconformity and represents an expression of personal style and taste. In contrast, a "science" is based on proven principles and, as such, can be taught and applied in a uniform manner by many people.

In order for systems development to move from an art to a science, a body of knowledge has to be defined in terms of proven concepts and standard terminology. Unfortunately, this is where the industry has been wallowing for the last 40 years. The Japanese example reveals it is not necessary to invent any new theories of management, but rather to reuse existing management principles that have already been proven over time. By doing so, they are attempting to move the industry from an art to a science.

FIVE BASIC ELEMENTS OF MASS PRODUCTION

Assuming we want to establish an environment of mass production to develop our information resources, it is necessary to understand its fundamental nature. As any introductory text book on manufacturing can explain, there are five basic elements of mass production:

1. Division of Labor - to break the production process into separate tasks performed by specialists or craftsmen. Such division specifies the type of skills required to perform the work.

2. Assembly Line - describing the units of work along with the dependencies between the steps thereby defining the progression and synchronization of product development.

3. Precision Tooling - for mechanical leverage in developing products.

4. Standardization of Parts - for interchangeability of parts between products, thereby lowering costs and shortening development time, and allowing assembly by unskilled and semiskilled workers.

5. Mass Demand - this represents the impetus for mass production; customers demanding standardized and reliable products at lower costs. In the IRM world this is represented by end-users who require standard and reliable systems at lower costs to support their information needs.

The rationale behind mass production is improved productivity; producing more quality products at less cost. Most people fallaciously equate productivity with efficiency, which simply gauges how fast we can perform a given task. Effectiveness, on the other hand, validates the necessity of the task itself. There is nothing more unproductive than to do something efficiently that should not have been done at all. An industrial robot, for example, can efficiently perform tasks such as welding. However, if it welds the wrong thing or at the wrong time, then it is counterproductive. It therefore becomes important in the production of any product to define WHO is to perform WHAT work, WHEN, WHERE, WHY, and HOW (we refer to this as "5W+H").

We therefore have long touted the following formula:

Productivity = Effectiveness X Efficiency

It is our belief improved productivity can be instituted by implementing the five elements of mass production and devising a manufacturing facility whereby are found:

Assembly Lines - increments of work sequenced in such a way to develop products. Along the assembly line, a series of tools and techniques will be deployed, some implemented by the human being, others through automated assistance, such as robots.

Materials Management - the business function concerned with standardizing parts so they may be shared and reused in various product assemblies. Further, it is concerned with collecting, storing and retrieving parts (inventorying) in the most efficient means possible (e.g., JIT - "Just In Time").

Production Control - oversees the assembly lines and materials management, looking for unanticipated delays or accelerations of production schedules. Consequently, corrective action can be taken as required to resolve problems.

These three components establish a "checks and balances" in manufacturing and can also be utilized to develop an "Information Factory" to develop an organization's information resources, whereby are found:

Methodologies (Assembly Lines) - defines the work environment (5W), thereby synchronizing the flow of work. Within the phases of the methodology, a variety of tools and techniques may be deployed defining HOW the work is to be performed.

Resource Management (Materials Management) - identifies and classifies information resources, thereby promoting the sharing and reusing of resources. It also ensures they are collected, stored and retrieved in a timely manner.

Project Management (Production Control) - used to plan, estimate, schedule, report, and control project work.

Why an "Information Factory" as opposed to a "Software Factory"? One of the key failures in the Japanese "Software Factories" experiment was its limited scope. It failed to address all of the information resources of an enterprise, especially business processes, administrative procedures, manual files, printed reports, human and machine resources, business functions, etc. all of which are essential to a total systems solution. The term "Information Factory," therefore, is an admission there is more to information resources than just software.

THE NEED FOR INDUSTRIAL ENGINEERING

The mechanics and infrastructure of an "Information Factory" are fairly easy to grasp, but it requires a special kind of person to implement: an Industrial Engineer.

The American Heritage Dictionary of the English Language (Third Edition) defines Industrial Engineering as: "The branch of engineering that is concerned with the efficient production of industrial goods as affected by elements such as plant and procedural design, the management of materials and energy, and the integration of workers within the overall system."

An Industrial Engineer considers the products to be build and employs work study techniques in order to improve productivity. Such a group of people is critical to the implementation of any mass production facility, including an "Information Factory." The Industrial Engineer has to be one part engineer and one part social scientist, studying the behavior of people (e.g., why they work in the manner they do). This is another element missed by the Japanese "Software Factories."

In an "Information Factory" the Industrial Engineer is responsible for:

1. Defining the infrastructure of the factory (methodologies to be used, resource management, and project management). This includes the progression and synchronization of work, along with the tools and techniques to be used (5W+H).

2. Establishing the types of people needed to perform the work, along with the required skill sets (and how to evaluate performance). This also includes specifying the types of training required to do the job.

3. Reviewing work products (work sampling) in order to evaluate product quality and production problems, thereby triggering the need for improvement.

4. Constantly looking for new tools and techniques to improve the process. It is generally agreed techniques and tools will come and go, and will evolve over time. As such, the Industrial Engineer is a student of the industry.

EFFECT ON CORPORATE CULTURE

The mechanics of the "Information Factory" are easy to assimilate and implement. The real problem lies in changing the behavior and attitudes of people, specifically, the corporate culture. The goal of an "Information Factory," as it is with any mass production facility, is to create a homogeneous development environment (as opposed to a heterogeneous environment where everyone is allowed to develop products as they see fit).

To counter the "Tower of Babel" effect found in most development organizations, the "Information Factory" seeks consistency and quality through uniformity and standardization. It is not uncommon for the concept of a factory-like environment to strike fear in the hearts of software developers as they may see it as a threat to their free-spirited individuality. Such an environment need not sacrifice freedom of expression or creativity. It is simply a means to channel such creative energies in a uniform manner.

The biggest problem though rests in reorienting people to believe they are in the business of building products, not just writing code. Acceptance of the "Information Factory" environment can be achieved if people understand the overall process, where they fit in it, what is expected of them, and how their work affects others. We have found most people prefer organization and discipline as opposed to chaos. Further, they can achieve superior results when standards are imposed; such discipline results in uniform and predictable work products,

IN CONCLUSION

It is possible to employ the same concepts and techniques as used in mass production towards the development of information resources. But creating a "factory"-like development environment takes more than simply calling yourself one. It is a significant reorientation effort. Fortunately, it is not without precedent and the concepts have already been introduced to devise an "Information Factory" based on other engineering/manufacturing disciplines.

The benefits of an "Information Factory" are no different than any other mass production environment: standardization, improved productivity, reduced costs, better change control, faster employee startup and more effective use of human resources. However, the impact of implementing such an environment should definitely not be underestimated. It affects people's perceptions regarding development and ultimately affects the corporate culture.

In order to move from an art to a science, it is necessary to define and standardize our terminology and concepts for developing information resources. Only when this happens can we teach it to others in a uniform manner and gain the legitimacy as a profession that has long eluded developers.

OUR BRYCE'S LAW OF THE WEEK therefore is...
"Q: How many interpretations of systems development are there?
A: How many analysts and programmers have you got?"

IN OUR "DOWN THE ROAD" SECTION

On March 6th-8th, the Gartner Business Intelligence Summit 2006 will be held at the Hyatt Regency in Chicago, IL. For info, contact Gartner at 203/316-6757

The 17th International Conference of the Information Resource Management Association will be held May 21st-24th at the Wyndham Hotel in Washington D.C. For information, call IRMA headquarters in PA at 717/533-8879

The World Conference on Quality and Improvement will be held May 1st-3rd at the Midwest Airlines Center in Milwaukee, WI. For information, contact the American Society for Quality at 800-248-1946 or 414/272-8575.

The Quality Assurance Institute will be holding its 26th Annual Quality Conference at the Rosen Plaza Hotel in Orlando, FL on April 24th - 28th. For information, contact the Institute in Orlando at 407/363-1111.

If you have got an upcoming IRM related event you want mentioned, please e-mail the date, time and location of the event to timb001@attglobal.net

MY "PET PEEVE OF THE WEEK" IS "SYSTEM SNAFUS"

In the January 30th issue of INFOWORLD magazine, there was an interesting story about "Infamous IT Meltdowns" which described colossal system development failures in the Government sector. In it, they listed the following failures:

The FBI "Virtual Case File" which attempted to replace the Fed's antiquated case management system. Ultimately, the project died due to the failure of defining an adequate project scope. Consequently, the project grew out of control. Last year, the government scrapped the entire program and went with something else. Cost to the taxpayer: $170 million.

The FAA's "Advanced Automation System" was an attempt to modernize the nation's air traffic control system which crashed before it even took over with a cost to the taxpayer of $2.6 billion.

The IRS's "Business Systems Modernization" which began in 1997 experienced problems due to personnel changes and scathing GAO reports. The project is still running with a cost to taxpayers at $8 billion and counting.

The Department of Defense's "Business Systems Modernization" has been called the "project from hell." A GAO report found the project to be "fundamentally flawed...and vulnerable to fraud, waste, and abuse." Cost to the taxpayer: $19 billion as of fiscal year 2004.

Were these projects doomed because they used the wrong tools? Probably not. They simply took a tool-oriented approach to systems development as opposed to a management-oriented approach. All of these systems can be conquered, but to do so requires no magical panacea, but a little good old-fashioned management and upfront systems work. I will wager you that all of these projects had plenty of programmers but very few systems people.

Such is my Pet Peeve of the Week.

AND FINALLY...

I received an e-mail from a Bernie DeMarco in Chicago who wrote me regarding last week's technology conference in Cincinnati.
Bernie writes:

"I enjoyed meeting you at last week's conference and appreciated your analogy between systems development and engineering/manufacturing. Are you available for on-site presentations?"

Thanks Bernie for your note,
First, I don't think there is anything magical in performing systems development, be it on a small or grand scale. A system is a product that can be engineered and manufactured like any other product. It just requires a little common sense and if I have learned anything in this business, if there is anything uncommon in this industry, it is common sense.

Second, Yes, I am available for both on-site and off-site presentations. This is exactly what we are trying to establish in Cincinnati, a new school for total systems development, not just the software portions.

Again, Thanks for your e-mail. Keep those cards and letters coming.

Folks, don't forget to check out our BRYCE'S CRASH COURSE IN MANAGEMENT which is a free on-line multimedia presentation offering pragmatic advice on how to discharge the duties of a manager, whether it be for a commercial or non-profit enterprise. Frankly, for someone aspiring to be a manager or for a new manager, it will be the best 45 minutes you can invest in yourself. Check it out on the cover of our corporate web page at: http://www.phmainstreet.com/mba

For a complete listing of my essays, see the "PRIDE" Special Subject Bulletins section of our corporate web site.

MBA is an international management consulting firm specializing in Information Resource Management. We offer training, consulting, and writing services in the areas of Enterprise Engineering, Systems Engineering, Data Base Engineering, Project Management, Methodologies and Repositories. For information, call us at 727/786-4567.

Our corporate web page is at:

http://phmainstreet.com/mba/

Management Visions is a presentation of M. Bryce & Associates, a division of M&JB Investment Company of Palm Harbor, Florida, USA. The program is produced on a weekly basis and updated on Sundays. It is available in versions for RealPlayer, Microsoft Media Player, and MP3 suitable for Podcasting. See our web site for details. You'll find our broadcast listed in several Podcast and Internet Search engines, as well as Apples' iTunes.

If you have any questions or would like to be placed on our e-mailing list to receive notification of future broadcasts, please e-mail it to timb001@phmainstreet.com

For a copy of past broadcasts, please contact me directly.

We accept MP3 files with your voice for possible inclusion in the broadcast.

Management Visions accepts advertising. For rates, please contact yours truly directly.

Copyright © 2006 by M&JB Investment Company of Palm Harbor, Florida, USA. All rights reserved. "PRIDE" is the registered trademark of M&JB Investment Company.

This is Tim Bryce reporting.

Since 1971: "Software for the finest computer - the Mind."

END

February 13, 2006

"USING INFORMATION STRATEGICALLY"

In Japan there is a movement underfoot for corporations to learn how to use information for strategic purposes, not just tactical. The Japanese want to go beyond their core systems and use information for competitive advantage. To do so, they are reevaluating the fundamental characteristics of information, which is a good place to start.

Even after 50 years of computing, there is still mass confusion over the sheer nature of information. Before we can use information for any purpose, be it strategic or otherwise, it would make sense to standardize our terms and establish a conceptual foundation. Fortunately, this has been well established in "PRIDE" since its inception.

There are those in both the corporate and academic world who have difficulties differentiating between data and information. Although they are closely related, they are certainly not the same. We follow a simple formula whereby:

INFORMATION = DATA + PROCESSING

Data is the raw material needed to produce information. By itself, it is meaningless. Information, on the other hand, is the intelligence or knowledge needed to support the actions and decisions of an enterprise. This is an important characteristic; if it cannot support any actions and/or decisions, it is not information but, instead, raw data.

Data is used to identify, describe, and quantify the objects of a business (e.g., products, orders, billings, shipments, employees, etc). Only when it is assembled into a specific context, at a given moment in time to support a specific business purpose does it become information.

As mentioned in previous broadcasts, specifying information requirements does not begin with the data or the layout of an output, but rather with an understanding of the consumer and what he/she wants to use the information for (actions/decisions) and when (timing). Following this, data and processing requirements are relatively easy to deduce.

There are fundamentally three types of information: policy, control and operational. Policy information is used to establish corporate direction; Control information is used by middle management to implement policy decisions and control corporate operations, and; Operational information is used by employees in the daily affairs of the business, such as processing orders, payroll, and shipping products.

Policy, control and operational information also fits conveniently into a three tiered model of the enterprise which specifies the actions and decisions of the business. Such a model represents the business functions implemented by the enterprise.

Up until now, our discussion has been limited to the use of information internally within an enterprise, not externally. This is where the Japanese interests are piqued. Feeling comfortable with the stability of their internal systems, they now want to take the next logical step and outperform their competitors and seize larger market-share. To do so requires new types of information systems to analyze consumers, markets, competitors, etc., and this is where strategic systems come into play.

TACTICAL VERSUS STRATEGIC

The difference between "tactical" and "strategic" is subtle, but significant; it would be erroneous to consider the two as synonymous. Tactical information deals with our day-to-day activities within the enterprise. Strategic information, on the other hand, is concerned with competitively broadening market-share in order to dominate. Perhaps the best way to differentiate between the two is to think of tactical information as addressing "internal" needs, and strategic information addressing the "external" world.

Whereas tactical systems are ultimately based on the model of our own enterprise, now it becomes necessary to devise new enterprise models representing our customers and competitors so we can best understand their information requirements and where their strengths and weaknesses reside.

Let me give you an example of how this works. I know of an automotive parts manufacturer in the U.S. Midwest who was interested in increasing their market share. To do so, they studied the operations of their customers, specifically independent auto parts outlets. Their study found one of the biggest headaches for outlets was in managing inventory. The parts manufacturer thereby devised a plan whereby they provided a free turnkey inventory system for their customers, complete with computer hardware. This greatly streamlined inventory for the outlets as well as simplifying purchase transactions. More importantly, the parts manufacturer was able to monitor inventory levels of the outlets which automatically triggered reorders as inventory levels got low (as opposed to waiting for the outlet to reorder parts). Further, the parts manufacturer was able to monitor sales trends and forecast production schedules. When sales volume slowed, sales promotions and advertising would be triggered to encourage business. All of this created a "win-win" situation for both the parts manufacturer and their customers. The customer got an easy-to-use and reliable inventory system for free, and the parts manufacturer, in turn, gained wider market share as more and more outlets bought into the program. Smart. Very smart.

Developing strategic systems such as the one mentioned here requires a new breed of systems engineer who understands as much about the outside world as they do about their internal operations, someone who can "think outside of the box." In addition to enterprise modeling and comparative analysis techniques, this next generation of systems personnel must be intimate in trend analysis and forecasting, so they can monitor trends in socioeconomic factors, technology, and the market overall. Such people are a rare commodity and will doubtless be well compensated.

IN CONCLUSION

The more we understand about the external entities affecting our business, as well as our own internal operating limitations, the better we can compete. The Japanese are cognizant of the lessons being taught by our representative in Japan, Kazuya Matsudaira, who uses analogies from the second world war to convey his message about strategic information with remarkable clarity. It is his contention that leveraged information resources used by allied forces played a strategic and decisive role in winning the war. Such an analogy is well understood by the Japanese. They know in today's global economy, the corporate winners will undoubtedly be those who know how to use information for competitive advantage.

OUR BRYCE'S LAW OF THE WEEK therefore is...
"The more we understand about the external entities affecting our business, as well as our own internal operating limitations, the better we can compete."

IN OUR "DOWN THE ROAD" SECTION

A special conference entitled "Cincinnati Technology: the Next Generation" will be held on Saturday, February 18th at the Netherlands Hilton in downtown Cincinnati, OH. Among the speakers will be yours truly to discuss the "PRIDE" approach to Information Resource Management. For information or to register, contact the First Rule Group at 513/375-3291.

On March 6th-8th, the Gartner Business Intelligence Summit 2006 will be held at the Hyatt Regency in Chicago, IL. For info, contact Gartner at 203/316-6757

The 17th International Conference of the Information Resource Management Association will be held May 21st-24th at the Wyndham Hotel in Washington D.C. For information, call IRMA headquarters in PA at 717/533-8879

If you have got an upcoming IRM related event you want mentioned, please e-mail the date, time and location of the event to timb001@attglobal.net

MY "PET PEEVE OF THE WEEK" IS "TECHNOLOGY OVERLOAD"

I recently came upon an interesting study performed by Kings College in London for Hewlett Packard, the purpose of which was to study the effect of technology on worker performance. Basically, the study said that excessive use of technology can have an adverse effect on a person's brain power. This is somewhat disturbing as technology now permeates our society. As an example, while traveling through the airports recently I observed the majority of my fellow travelers "tuned out" by technology. The lion's share of travelers today make active use of iPods, PDA's, cell phones, DVD & CD players, and laptop computers. It also seems to me that fewer and fewer travelers read a book or engage in conversation anymore.

If the study is correct, and I believe it is, the manager should take notice of this adverse effect of technology and discourage the use of such devices, particularly at break time, and encourage more interpersonal contact instead. Technology has its place, but I tend to believe we rely too heavily on it. For example, using an automated calculator allows our brain to relax while the machine performs the math. Too often I've seen people reach for a calculator to perform a simple computation as opposed to working it out with paper and pencil. They simply do not want to engage their brains. Further, I have seen whole engineering departments come to a standstill when power outages brought their computers down. Do they really lack the skills to continue their work? Not really; their minds have simply been turned off by the technology.

Such is my Pet Peeve of the Week.

AND FINALLY...

I received an e-mail from an AC Kemper in Athens, OH who wrote me regarding last week's essay on CIOS's: The Untouchables.
AC writes:

"I take exception to your comments about Chief Information Officers. Having served as one for a number of years, I had an open-door policy for communicating to my staff as well as other executives."

Thanks AC for your note,
If what you are saying is true, then you were the exception as opposed to the rule. Most are out promoting their programs in colleges and technical associations, which is very reminiscent of politicians trying to sell a program. When they are recognized for what their organization has accomplished, many forget to recognize the people who actually saw the projects through to completion. This kind of reminds me of running backs or quarterbacks in football who forget to acknowledge it was their offensive line who made it all happen. Very strange.

I also received the following note from a Bill Taylor of New Hampton, NH who wrote me about the CIO cocoon phenomenon:

"Why should this surprise anyone? Don't ALL professional groups try to cocoon themselves? Politicians cocoon themselves by gerrymandering their districts and by not prosecuting each other when they steal. Civil "servants" such a teachers cocoon themselves by making themselves impossible to fire regardless of performance. Social workers cocoon themselves by making it a crime for parents to discuss court actions in the press. Military guys cocoon themselves by invoking "national interest" and secrecy.

CEO's cocoon themselves by getting compensation committees to A) hide the details in the annual report, and B) make their compensation go up regardless of performance.

Why should anyone expect CIOs to be any different?"

Again, Thanks for your e-mail. Keep those cards and letters coming.

Folks, don't forget to check out our BRYCE'S CRASH COURSE IN MANAGEMENT which is a free on-line multimedia presentation offering pragmatic advice on how to discharge the duties of a manager, whether it be for a commercial or non-profit enterprise. Frankly, for someone aspiring to be a manager or for a new manager, it will be the best 45 minutes you can invest in yourself. Check it out on the cover of our corporate web page at: http://www.phmainstreet.com/mba

For a complete listing of my essays, see the "PRIDE" Special Subject Bulletins section of our corporate web site.

MBA is an international management consulting firm specializing in Information Resource Management. We offer training, consulting, and writing services in the areas of Enterprise Engineering, Systems Engineering, Data Base Engineering, Project Management, Methodologies and Repositories. For information, call us at 727/786-4567.

Our corporate web page is at:

http://phmainstreet.com/mba/

Management Visions is a presentation of M. Bryce & Associates, a division of M&JB Investment Company of Palm Harbor, Florida, USA. The program is produced on a weekly basis and updated on Sundays. It is available in versions for RealPlayer, Microsoft Media Player, and MP3 suitable for Podcasting. See our web site for details. You'll find our broadcast listed in several Podcast and Internet Search engines, as well as Apples' iTunes.

If you have any questions or would like to be placed on our e-mailing list to receive notification of future broadcasts, please e-mail it to timb001@phmainstreet.com

For a copy of past broadcasts, please contact me directly.

We accept MP3 files with your voice for possible inclusion in the broadcast.

Management Visions accepts advertising. For rates, please contact yours truly directly.

Copyright © 2006 by M&JB Investment Company of Palm Harbor, Florida, USA. All rights reserved. "PRIDE" is the registered trademark of M&JB Investment Company.

This is Tim Bryce reporting.

Since 1971: "Software for the finest computer - the Mind."

END

February 6, 2006

"TODAY'S CHIEF INFORMATION OFFICERS: THE UNTOUCHABLES"

It has been often said there should be two Presidents for the United States; one to deal with politics, and another to tend to the true affairs of government. The same can be said for today's Chief Information Officers. Although they should be tending to matters of state, they are all too often preoccupied with politics and gamesmanship.

Ideally, the CIO is the information keystone for a company. As chief architect and information broker, the CIO represents the catalyst between understanding business information needs, and the development organization who must satisfy them. Although the position often comes with much pomp and circumstance, it is all for naught if the CIO cannot effectively tend to this pivotal role.

As the focal point for a company's information resources, the CIO must deal with a wide spectrum of people: end-users concerned with the status of their development projects, as well as reporting problems to existing systems; technicians who argue over tactics of implementation; vendors marketing the latest technical panacea; and CPA's who scrutinize every penny spent by the CIO. Sound hectic? It is. Feeling harassed, the CIO tries to insulate himself, and herein lies the problem.

THE ELECTRONIC COCOON

The CIO begins his tenure as an "ambassador" between his department and the rest of the organization. But as demands close in, he builds a buffer around himself, an electronic cocoon of voice mail and E-mail. Though voice mail is designed to record messages while a person is away from the office, it is primarily used to screen out unwanted callers (both internal and external). Consequently, calls are not returned. E-mail is touted as a convenient way to enhance organizational communications, but the CIO finds himself besieged by a ton of memos and notes (most of which go unanswered). By coordinating these two technologies, it is possible to avoid human contact altogether. However, this would negate the need for the organizational cocoon.

THE ORGANIZATIONAL COCOON

After the electronic cocoon is in place, the CIO develops an infrastructure featuring several layers of management. This allows the managers to concentrate on the day-to-day operations of the department, while the CIO concentrates on hobnobbing with the corporate brass. As problems rise through the organization (as they invariably will), the CIO simply adds another layer of management to deal with the problem. In departmental issues, the CIO is more concerned with who gets to deal with the problem than what the true solution might be.

The CIO's final and crucial sentry is his secretary. Used properly, secretaries play vital roles as expediters for their managers. For the CIO, the secretary has more of a "pit bull" role, with explicit orders to redirect phone calls and mail, and to tell anyone foolhardy enough to try for a face-to-face encounter that the boss is "in a meeting" and cannot be disturbed.

POLITICALLY CORRECT

The CIO often speaks in a forked-tongue. On the one hand he is conversant in the latest catch phrase (i.e., "re-engineering," "enterprise architecture," "business rules," "extreme/agile programming," etc.), but on the other he must be politically correct when talking with his peers. Although he balks at technical discussions with his own staff, he loves to overwhelm executive management with his technical verbosity. Conversely, he dazzles the technical staff with management jargon, discussing the "global impact" and "bottom line strategies." As a consequence, the CIO fails miserably as translator between management and the technicians. He plays a different part for each group, making sure neither group can understand (or attack) his grandiose ideas.

LOSING TOUCH

Surrounded by the false security of e-mail and voice mail, protected by platoons of managers and his diligent secretary, the CIO can finally relax. However, due to poor communications with the CIO, executives and users do not know how their business information requirements are being satisfied. And since you cannot communicate with someone who is not there, they become frustrated with the elusive executive. Technicians, awaiting their marching orders, are following a leader who has lost touch with the real world. Impossible to communicate with, he cannot properly manage his department.

Without proper management, chaos reigns, and the CIO's tenure will be brief. Perhaps this is why the average life expectancy for a CIO is between 6 and 24 months. How can an IS department plan for the future if there is a revolving door at the top? CIO's must shed their insular layers and become accessible to their own people and executives. Only then will information systems be synchronized with the goals of the business.

NOW FOR SOME RECOMMENDATIONS

The CIO is the pivotal player for satisfying the information requirements of an enterprise. The CIO, therefore, must recognize interpersonal communications as an inherent part of the job. Instead of avoiding it, he must master it. Some suggestions:

1. RESTRICT THE USE OF ELECTRONIC MAIL - there are some merits to passing documents electronically throughout the company. However, legislate the distribution of junk mail (spam) as a felonious crime.

2. DUMP THE VOICE MAIL - its dehumanizing effect is perhaps the biggest irritant around. Instead...

3. HIRE AN EFFECTIVE SECRETARY - not just a clerk to chase people away on the phone. A real secretary can expedite problems when the boss is busy or away. The CIO's secretary can be one of the most powerful people in the IT organization.

4. FLATTEN THE ORGANIZATION - building an empire with layer upon layer of management only causes confusion in terms of responsibilities and slows the decision making process. Even worse, important decisions tend to fall through the cracks.

5. TALK IN PLAIN BUSINESS TERMS - using the latest catch phrases (technical or otherwise) may be trendy but they may also be misleading. Find out what you're talking about, and express it in simple terms. If your executives or technicians cannot follow what you are saying, you are not communicating. If they truly understand what you and your department are doing, you will have real backing and support, instead of a sign-off for the latest superficial offering.

6. Last but not least, ANSWER THE DAMN PHONE! People like to know there is a real person out there, not someone who is obscure and runs around the world answering messages by e-mail or voice mail.

OUR BRYCE'S LAW OF THE WEEK therefore is...
"If we lived in a perfect world, there would not be a need for managers; projects would be executed on time and within cost. However, the reality is, we live in an imperfect world."

IN OUR "DOWN THE ROAD" SECTION

A special conference entitled "Cincinnati Technology: the Next Generation" will be held on Saturday, February 18th at the Netherlands Hilton in downtown Cincinnati, OH. Among the speakers will be yours truly to discuss the "PRIDE" approach to Information Resource Management. For information or to register, contact the First Rule Group at 513/375-3291.

On March 6th-8th, the Gartner Business Intelligence Summit 2006 will be held at the Hyatt Regency in Chicago, IL. For info, contact Gartner at 203/316-6757

The 17th International Conference of the Information Resource Management Association will be held May 21st-24th at the Wyndham Hotel in Washington D.C. For information, call IRMA headquarters in PA at 717/533-8879

If you have got an upcoming IRM related event you want mentioned, please e-mail the date, time and location of the event to timb001@attglobal.net

MY "PET PEEVE OF THE WEEK" IS "TECHNOLOGY ADDICTION"

In last week's State of the Union address, President Bush discussed the country's addiction to oil. He suggested the best way to solve our problem is through technology. And maybe he is right, but I tend to believe that technology is only a part of the equation, that if we possessed the proper management skills we could conquer just about anything. Let's take the space race of the 1960's as an example; true, it introduced a lot of technological innovations but more importantly, we devised a management program that laid out the program which led to man landing on the moon before the end of the decade. This program was every bit as ambitious, if not more so, than resolving our dependency on oil. Yet, it was conquered. But now I question our country's ability to accomplish anything of substance on a grand scale. Its not that we lack the technology; in fact, I think we have too much technology; that we have developed an infatuation or addiction to technology and, in the process, have lost the skills necessary to manage large projects.

Let me give you an example as it applies to systems development. Over the last 35 years, we've seen a plethora of tools and techniques introduced to help expedite the development of systems, all promising quantum leaps in productivity. We've seen many new programming languages introduced, data base management systems, data dictionaries and repositories, structured programming and object oriented programming, CASE tools, 4GLs, report writers and program generators, visual programming tools and programmer workbenches, and so on. Today, we get excited about such things as Agile/Extreme programming. Yet, here we are 35 years later and our problems are no different than the early 1970's:

* User information requirements are not satisfied.
* Little or no planning is performed.
* Systems lack documentation.
* Data redundancy plaques corporate data bases.
* Systems lack integration.
* Projects are rarely delivered on time and within budget.
* Quality suffers.
* Development personnel are constantly fighting fires.
* And there is no real effort to share and re-use information resources.

Basically, what we have done over the last 35 years is taken a tool-oriented or technology-oriented approach to solving our systems problems. Instead, what is needed is a management-oriented approach that imposes a little leadership, discipline, organization and accountability. All of these problems are easily conquerable if we were to apply some simple, common-sense management techniques. Unfortunately, companies have abdicated control over their systems simply because management is no longer considered fashionable; that technology will solve all of our problems. And its this train of thought that makes me wonder if President's Bush's objective to conquer the country's dependency on oil will ever come to fruition. Technology without Management is Madness. You simply can't build anything of substance without a good set of blueprints.

Such is my Pet Peeve of the Week.

AND FINALLY...

I received an e-mail from a Bob Carlson in Los Angeles who wrote me regarding last week's essay on Testing.
Bob writes:

"What kind of tools do you recommend for software testing?"

Thanks Bob for your note,
There are actually several tools for testing software, including test data generators, repositories, and program debuggers. There is even an Association for Software Testing to discuss such topics. For information, see: The Association for Software Testing

More importantly, how about some simple human thought? Another pair of eyes can often spot problems. That's why I am a big advocate of code reviews and structured testing. But to do so, we have to first establish standards for writing code and testing. Unfortunately, I.T. departments and programmers don't like operating under such standards making such reviews and testing difficult if not impossible. But if your company has the foresight to establish such standards, than software testing can be a very painless process.

Again, Thanks for your e-mail. Keep those cards and letters coming.

Folks, don't forget to check out our BRYCE'S CRASH COURSE IN MANAGEMENT which is a free on-line multimedia presentation offering pragmatic advice on how to discharge the duties of a manager, whether it be for a commercial or non-profit enterprise. Frankly, for someone aspiring to be a manager or for a new manager, it will be the best 45 minutes you can invest in yourself. Check it out on the cover of our corporate web page at: http://www.phmainstreet.com/mba

For a complete listing of my essays, see the "PRIDE" Special Subject Bulletins section of our corporate web site.

MBA is an international management consulting firm specializing in Information Resource Management. We offer training, consulting, and writing services in the areas of Enterprise Engineering, Systems Engineering, Data Base Engineering, Project Management, Methodologies and Repositories. For information, call us at 727/786-4567.

Our corporate web page is at:

http://phmainstreet.com/mba/

Management Visions is a presentation of M. Bryce & Associates, a division of M&JB Investment Company of Palm Harbor, Florida, USA. The program is produced on a weekly basis and updated on Sundays. It is available in versions for RealPlayer, Microsoft Media Player, and MP3 suitable for Podcasting. See our web site for details. You'll find our broadcast listed in several Podcast and Internet Search engines, as well as Apples' iTunes.

If you have any questions or would like to be placed on our e-mailing list to receive notification of future broadcasts, please e-mail it to timb001@phmainstreet.com

We accept MP3 files with your voice for possible inclusion in the broadcast.

Management Visions accepts advertising. For rates, please contact yours truly directly.

Copyright © 2006 by M&JB Investment Company of Palm Harbor, Florida, USA. All rights reserved. "PRIDE" is the registered trademark of M&JB Investment Company.

This is Tim Bryce reporting.

Since 1971: "Software for the finest computer - the Mind."

END