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The Title is Information Officer … Chief Information Officer

Love that title!  Ha ha ha!  What a great way to end John Bostick week here at thefuturevalueofbusiness.com.  I hope you’ve enjoyed the look back.  This last post comes to us from InfoManagement 09.2007.  Enjoy!

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Say the name Sean Connery, and virtually everyone who enjoys movies will think of his most famous line: “The name is Bond, James Bond.” Ian Fleming’s spy novels made the Bond character popular before Connery first played him onscreen in 1962. And five other actors have played Bond during the last 45 years. But it is Connery most of us see in our heads when we hear the famous musical riff from every film’s opening sequence. And Connery is the standard against which all other would-be Bonds – perhaps even all other secret-agent characters – are measured. Does the name George Lazenby mean anything to you?

Yet, of the 28 nominations and 12 awards recognizing his acting prowess, none were for his role as James Bond. Not only has he starred in dozens of films other than Bond flicks, he defied the bane of the acting world – typecasting. In fact, he won an Oscar not for playing a super-spy, but for his turn as Jim Malone, the aging, street-weary Irish cop in The Untouchables.

Connery’s secret? Transformation. He captured our collective imagination as the dashing British Bond, but he realized the role was ultimate a dead end. He made the tough decision to abandon the old role in his comfort zone at the height of its popularity in order to improve his long-term career prospects. He then used his box office appeal as leverage with the studios to give him the broader roles he knew were critical to his professional survival.

Today’s senior IT execs, and those who aspire to move up the ladder, can take a few pointers from Connery.

During the late ’90s, IT executives were the stars of many businesses, capturing the imagination of their companies and customers by leading them in new directions for information technology. E-commerce. Web services. Name a tech trend; the CIO and his/her senior staff were in the lead. But as the world moved from seeing technology on its own as a strategic advantage, and began making technology decisions based on the business value they were supposed to bring instead, the CIO and senior IT execs went from stars to bit players in their organizations. They were typecast as the tech geeks with no business sense.

New priorities have replaced the corporate IT “space race” of the last century in the minds of C-level executives: compliance, mergers and acquisitions, corporate governance and outsourcing. No longer impressed with IT’s nuts and bolts, CEOs, CFOs and COOs are more concerned with IT’s cost and its contribution to generating value. With little more to offer than gripes about interoperability and the shortage of IT workers, many CIOs risk losing their seats at the executive table.

Like Connery using Bond as leverage, today’s CIOs and other senior IT executives need to branch out from their traditional roles in order to become true information officers – the type who understand how technology applies to the financial, operational and competitive sides of the enterprise. Based on my experience of talking to CIO’s, IT executives and aspiring IT executives everyday, here are a few suggestions on how to fight the technology typecast.

Business First

Actors call this “sharpening their craft.” Business pundits call it “business/IT alignment.” What it means is understand the basics of your industry and your organization first. Know your company’s customers, suppliers, and competitors. Read broadly and deeply about business, to be perceptive about management, markets, global culture and accelerating change that technology is in large part driving. Know before your executive peers can blink that – the world is flat – the tail is long – the ocean is blue – and – the implications that the truth can be terribly inconvenient. Insert perceptive IT questions into your company’s customer satisfaction surveys and champion the insights. Try to get a seat at Board meetings as a participant, advisor, observer or guest. Develop IT buy-in with your executive peers make sure you have a clear IT governance strategy that the CFO and/or general counsel helped develop. This is the first step toward an IT vision that ties into business objectives, strategies and measurements.

Refocus Your IT Organization Away from Commodity Activities and Toward Business Value

If you want to increase your standing in the enterprise, you have to show more than mere competence at what’s expected. Here’s an example. Ben Stiller gets a lot of work in Hollywood. But he doesn’t command Connery money. That’s because he’s essentially playing one of the three Ben Stiller types in every movie.

CIOs and their organizations should emulate Connery’s ability to evolve with the times and changing needs of the “audience.” Departmental time management is an excellent example of adapting to dynamic conditions. Time and resources will always be finite. What will change is how those hours and resources are deployed. Identify IT activities that have been commoditized. Some may be critical and require world-class performance. But, they will still be commodities that offer no differentiating value to your company. Treat them as such. Outsource those activities to specialized providers, and then stack internal time and resources against objectives dictated by business strategy.

Remember that the definition of an IT commodity will change over time and in response to market conditions. So, stay agile and flexible with staff and budget deployment. But also stay focused on the brainwork instead of the mechanical work, and you will provide greater value.

Want to know what practices work best? Keep in touch with your peers – their careers and their organizations. Outsiders have no political stake in the game and can provide insight and honest feedback.

Measure Results

Much like distribution doesn’t measure a film’s success – the box-office take does -activity in IT doesn’t equal results. Your staff may be busy doing something. But that something may not be moving the business forward.

IT managers focus on activities. CIOs and senior IT executives must focus on leadership, goals and results. Tie your department’s results to business objectives anchored by the business’ front-line results. For example, if the business missed its numbers for the quarter, you should consider IT’s role in that deficit and how IT can help put revenue back on track. Keep measurements simple and keep them aligned with executive priorities and operational plans. Measure IT in a business context rather than an IT-focused one and you will increase your prestige with other executives.

Nurture and Grow Business and IT Strategy Together

Some of the actors who followed Connery followed his successful strategy and parlayed a stint as 007 into more lucrative work. Some did not. You should expect the same experience with your IT staff. As you transform your role in the business, it’s important that your people follow that path as well. Encourage them to pursue the same kind of new education and awareness you are. Do what you can to provide growth opportunities for them. After all, you are a team, and you will only go as far as the team can take you.

For example, you can provide your team members with an “MBA career roadmap” instead of an IT-centric employee development plan. Get their buy-in that their careers have to be aligned with the business and not just tethered to IT. The more they understand how business works, the better prepared they’ll be to make valuable contributions to the organization.

Accept that not all of the team will follow this path. Some will – and should – remain focused on the nuts and bolts of IT. In fact, it’s your job as a leader to help individuals discover when this role fits and what value it delivers.

The rapid pace of change in technology and the dynamic nature of global business put CIOs and senior IT execs of all kinds, from midsized company to major corporation at risk of being typecast as a one-role actor. If you aspire to the executive suite, you need to ask yourself: Am I Connery? Or am I Lazenby?

Bond fans know what I mean.

– JB

Using OLAP to Improve Organizational Effectiveness – Part 2

This is the second in my series of 3 posts on using OLAP tools to improve the effectiveness of organizations.  In Part 1 I discussed some background concepts and terminology.  In this part, we’ll talk about some specific examples of how OLAP can have an impact in this area.

OLAP’s Impact on Organizational Effectiveness

How can an OLAP tool help improve an organization’s performance as measured against its objectives?  Answering this question requires a greater understanding of how strategies and tactics are implemented within organizations.  I’ll use a model of organizational effectiveness developed by Michael Beer to illustrate the implementation of strategies and tactics.

The picture below shows a simplified version of a model of organizational effectiveness developed by Michael Beer (Note on Organizational Effectiveness, 10).  Business goals and strategy influence and are influenced by top management.  Management determines and implements the proper organizational design to achieve the organization’s goals.  The design of the organization, in turn, influences human resources attributes of the organization.  Finally, these HR attributes directly impact organizational effectiveness.

This simplified version of Michael Beer’s model is presented again below.  Added to the model though, is the position of an OLAP tool in improving organizational effectiveness.  OLAP technology exerts its influence on organizational effectiveness in three sections of the model:

• Management
• The Measurement and Reward Systems aspects of Organizational Design
• The Coordination aspects of Human Resources.

While the impact of OLAP technology in each of the areas above is slightly different, each is related and shares a common trait: improvement in communication.  Utilizing OLAP tools to improve communication requires a broad audience for their utilization.  OLAP tools are traditionally utilized by analysts and managers.  In this model, front-line employees become critical users of the tool as well.  The wide-scale availability of web-based OLAP tools makes such organization-wide implementations cost-effective.

Business Intelligence in Utilities

A few weeks ago I posted some thougths on the future of Smart Grid and what it meant to the consumer.  In essence, my observation was that it may be BI for BI’s sake.  My musings were based upon a post from Bart Thielbar of Sierra Energy which were posted in Intelligent Utility.  He and I started trading some email, which led to a discussion on how Business Intelligence initiatives were being led at utility companies.  I’ve had some experience at FirstEnergy, Duke Energy (formerly Cinergy), AEP, and Southern Company.  Bart had just finished a survey of utility execs on BI.  Here’s what he found:

We compared notes and were both pleasantly surprised to find similar results.   Click here to read more about his findings.  Click here to see his post that started all of this.

(Note:  if you aren’t engaging in dialogue around the Net, you should.  You’ll meet some fabulous people along the way and gain more insight!)

Follow me on Twitter:  @LUCRUMinc

-  Jodie

Mmmmm…cheesecake

I was sending a text message to my BFF Rose the other day.  She was suggesting the Cheesecake Factory for a celebratory lunch.  I wanted to respond in a way that let her know that my eyes were spinning as if I were in a cheesecake-induced, coma-like state and being led to my cheesecake master.  My response was intended to be “Mmmmmm….cheesecake”.  Thanks to my trusty iPhone auto-correct, the response came through as “Hmmmmm…cheesecake”.  Clearly a HUGE difference!  This response sent the message that I was thinking through the cheesecake option, though I had not yet settled on an opinion.  The only response that would’ve been worse was had it auto-corrected to “Ummmm…cheesecake”, which would imply, “Really?  You are thinking cheesecake?”

The whole cheesecake, text message snafu led me to think – HOW DEEP IS YOUR METADATA??  Consider the following:

• Mmmmm = Yummy
• Hmmmm = Thinking
• Ummmm = Thinking

In your organization, how many variants do you have to the word Revenue?  It’s really the same thing:

• Invoiced Revenue = Stuff we sent a bill for
• Sales Revenue = Value of an order
• Recognized Revenue = $$ added to the financial statements

As you start to build your data warehouse, you may run into the same issue.  How do you keep it all straight?  Certainly in a word document or in your requirements document you’ve created the definition.  But how accessible are those documents at the conclusion of the project?  How are they distributed to the end-users?  Are they in a user manual somewhere?  How often is that manual consulted?  When new reports are being created or new project teams are being established, are these documents reviewed at the beginning of the new effort?  If there is a conflict in the definition, whom should be called to resolve the dispute?  Sounding familiar??

LUCRUM partners with a great local company, Balanced Insight.  Balanced Insight makes a product called Consensusthat allows you to track your metadata, organize it, and build data structures to support it.  Imagine if you could produce a picture to show your customer how data is related.  This picture allows them to confirm that “you’ve got it!”.

Consensus also allows you to see how the terms are defined and interconnected.  Using a tool like Consensus allows you to set priorities and target the items that may “break” if a system is converted or taken off-line.  I can’t imagine gathering requirements without using this tool!!

I don’t know if it will save my next iPhone auto-correct issue, but it sure would be helpful.

-  Jodie

LUCRUM and Central Clinic Partner-up

Central Clinic is expanding their services in 2010 and therefore requires an enhancement and modernization to their current system.  LÛCRUM Inc has been awarded a contract to provide consulting services focused on the Alcohol and Drug (AoD) Application for Central Clinic utilizing the program for client treatment history and billing/payor accounting.   The primary deliverables are focused on Universal Payer Changes, SQL Server Upgrade  and Application Enhancements.  LUCRUM and Central Clinic have partnered on other applications in the past and we look forward to continuing that partnership in 2010!

New Partner: TARGIT!

Have you heard of TARGIT?  TARGIT is a suite of BI Tools geared toward getting you to BI “in the fewest clicks”.  LUCRUM has always been a big believer in doing BI..Faster!  This suite of tools is a great tool in our toolbox.  We encourage you to learn more:  http://www.targit.com/Products/TARGIT_Suite.aspx

Using OLAP to Improve Organizational Effectiveness – Part 1

OLAP tools have been widely available for years and are in use in a large number of organizations.  They are typically deployed as speedy, easy-to-navigate reporting tools.  With a little creativity though, this class of software can also be utilized in a very different manner.

As organizations struggle to communicate their objectives to employees and to align the activities of those employees with the objectives of the organization, they can get help from these same OLAP products.  OLAP software can help by providing the capability to:

1. Improve management’s knowledge of progress on objectives
2. Improve employee coordination on efforts to achieve objectives
3. Communicate the link between employee effort and performance
4. Communicate the link between employee performance and reward
5. Improve employee performance feedback.

In this series of three posts, I’ll talk about the role OLAP tools can play in each of the areas above.  But first, I’m going to start out with an introduction to the concept of Organizational Effectiveness.  This introduction will give us a structure to frame the rest of the discussion.

I am not going to spend any time defining OLAP.  If you’re interested, check here and here for some background and definitions.

Organizational Effectiveness Defined

Effectiveness is defined as simply having the intended outcome.  In an organizational context, the intended outcome is the goal of the organization which is usually expressed in a mission statement.  The Hierarchical Definition of Strategy provides a framework for defining and explaining these concepts and I am going to use it extensively in these posts.

Hierarchical Definition of Strategy

Explaining organizational effectiveness requires a discussion of business strategy and the Hierarchical Definition of Strategy provides a simple framework for this discussion.  The Hierarchical Definition of Strategy is built on the concepts of Mission, Objectives, Strategies, and Tactics (Barney, 10).  I’ve drawn a simple figure below to help explain this model:

An organization develops its objectives based on its mission while strategies and tactics provide specific details regarding the attainment of these objectives.  In the Hierarchical model, the effectiveness of the organization can be determined by simply comparing actual performance to objectives.  Michael Beer summarizes organizational effectiveness in this manner:

“An effective organization is one capable of implementing its strategy … A strategy is implemented effectively when people and groups in the organization work in a motivated, skilled, and coordinated manner on the appropriate tasks.” (Note on Organizational Effectiveness, 10)

In other words, the effectiveness of the organization is determined by its ability to achieve its objectives.

Hierarchical Definition of Strategy – Example

An example will help to clarify these concepts and make them a little more concrete.  Dell Inc.’s Mission Statement is:

“Dell’s mission is to be the most successful computer company in the world at delivering the best customer experience in markets we serve.”

The high level nature of the statement, though necessary, makes it difficult for individual employees to apply it to their daily efforts.  At the next level of the strategy hierarchy, Dell management has likely developed Objectives that will lead to the achievement of this mission.  For instance, we can imagine that Dell has defined an objective to “Provide customer support with a customer approval rating of over 90%.”  This supports their mission of “…delivering the best customer experience…” and provides employees with a tangible performance target.

The final two levels of the hierarchy are related to execution.  Strategy is a means to accomplish an individual objective.  Continuing with our imaginary Dell example, the strategy developed might be “Deliver the fastest, most accurate technical support in the industry.”  This supports their objective in the sense that a firm delivering the fastest and most accurate technical support would very likely receive high approval ratings from customers.  Tactics are execution oriented and exist at the lowest level of detail.  In the Dell example, a tactic may be a requirement that all customer support personnel complete a certain set of technical and communication skill classes.

In the example developed above, Dell’s organizational effectiveness can be determined by comparing actual appraisals of their support services with their objective of a 90% approval rating.

Next Post…

Now that we’ve laid out some concepts and terms, we can move on to the heart of the discussion.  In Part 2, I’ll dive into the details and talk about how utilization of an OLAP tool can help an organization become more effective.

Predictive Analytics & Healthcare

As a follow up regarding my post yesterday on Predictive Analytics, I wanted to bring attention to an article that Wired Magazine had last November on a predictive concept for “Modeling Human Drug Trials – Without the Human.” Using similar concepts, as well as rules which were indeed put in place by PHD’s, these folks replicated human trials which had taken 7 years of study – in about an hour.  Yup, hit run on the computer, and an hour later the results popped up – which according to the article hit 2 of the 4 markers studied perfectly, the 3rd within an approved margin of error, and the 4th was just below the accepted margin of error.  Ok, the computer model took 2 months to setup, and 1 hour to run, but running this model in 2 months and 1 hour, compared with the actual trial which involved thousands of people, millions of dollars, and 7 years?  WOW, very very powerful, controverisal for sure, but very powerful.   Here’s the link for your reading pleasure. http://www.wired.com/magazine/2009/11/ff_archimedes/…

Microsoft Predictive Analytics!

Data Mining. Predictive Analytics. Quick what comes to mind? Expensive. Complicated. Statistical PHD required. Right? Not anymore, I’m very excited that Microsoft has entered this field with SQL 2008, and it appears could make a big difference regarding time, complexity and cost associated with leveraging your historical data to predict future events related to your organization.

• Which products will sell best in a down economy?
• Who is likely to be a loyal customer, and who is not?
• Which treatment would be the most effective for this patient?

Answers/predictive models based not upon gut instinct – but upon the facts derived from the very real treasure trove of data locked up in transactional IT systems. Very cool concept. It may not be an iPad – but I think Microsoft’s predictive capabilities will have a big impact on their intended market nonetheless, and I’m very excited to be a part of it!

The Value of Slowing Down: Go Slow to Go Fast!!

I once read about a Chinese mathematician who calculated complex scientific formulas by hand using a slide rule. He lamented the rising cadre of scientists who punched formulas into calculators and computers. Although they worked more quickly, the new generation of scientists often lost sight of the concepts behind the calculations.  Without this fundamental understanding, the younger scientists often failed to grasp the significance of what they were doing or apply concepts in new ways to make new discoveries or effective designs.

This story parallels an area in Information Technology called “Business Intelligence.”   Business Intelligence is also known as “Data Warehousing” and “Executive Information Systems” with dash boards or digital cockpits.  The IT organization provides a rich repository of data for the business knowledge workers.   Providing data has become so important; in addition, the tools leveraged have become more and more rich in functionality.  And yet, the number of business users truly leveraging this kind of technology-oriented business information environment lags the productivity that the organization could receive.  Simple questions like:  who are my best customers and why?  What’s my best product and what is its margin contribution?  Why is my market share in a particular geography increasing where in another market it’s declining?   How can I get my business results information faster so I can be more informed on the ever-changing aspects of the market?   A user says, I can make a lot of informed decisions….how can I make even more of them instead of hire more decision-makers?   The business and market questions go on and on and on.

As IT professionals, we are used to being held accountable to deadlines with ever changing resources and requirements.   In the world of Decision-Making, as data warehousing managers, we often are rushing to meet these same deadlines.  Often the deadlines and deliverables overshadow the underlying purpose for building the data warehouse. The good thing about bad times is that they force us to slow down and painstakingly evaluate what we are doing. So, although there are dark clouds ahead, there is a silver lining in the reality of our environment in having to do “more” with “less” resources. 

Here are 3 tips to consider making your Data Warehousing environment even more “ready” for business decision-makers. 

1. Meet with the Business Decision-Makers frequently.   I am suggesting that a weekly meeting at a minimum would be beneficial in order to review their data, listen carefully to understand what data they are really using, and what data they may be leaving behind.   Is the data they are leaving behind the result of not understanding how to use the data, is the data no longer relevant to their decisions, or perhaps the data is too summarized or too detailed?
2. Document the business flow of the data graphically using business terms, not technology metadata definitions.  Distribute the business document to all business and IT users so that everyone really knows how the data is being used in the context of business.   Too often, we revert to memorizing the technical definitions and only use them.  We lose the business context and as new people join the data analysis, the true business definitions are lost. 
3. Proactively have discussions sponsored by IT with the Business Users about the cleanliness of the data and how IT is transforming the data.    Show them the techniques that you are using to cleanse the data and transform it so that there’s a common repository of data that they can use.   The more the Business Users understand what you do in context of the IT problem, the more they will provide their insight into how the data is most meaningful to use. 

Chinese “Business Intelligence” Proverb:  If you plan for one year, plant rice.  If you plan for 10 years, plant trees.  If you plan for 100 years, educate mankind.

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