The Death of Distance – The Sequel

Call me a techie, something of a science-minded Skeptic who looks upon the ever-growing shelf of self-help titles for the executive set (and aspiring cadre) with a mixture of some bewilderment, little amusement-cum-disdain, and lots of professional jealousy. How come “they” have it and “we in IT” don’t? Meaning the inspired and adapted learnings of history’s greats to better one’s management skills. Just imagine our very own reading list: “Metternich on Winning Over Business Owners,” “George Smith Patton III, the Gatling Gun, and the Importance of IT,” or “À la Bonaparte – Supreme Power to the Little Guy” …

Nothing, however, beats management by Sun Tzu, his 6th century BC The Art of War a timeless classic on military strategy and thought. This enduring treatise which is, of course, shockingly contemporary in parts, stresses the importance of deception, cunning, and spying on others; not doing what you say you’re going to do emerges as the leitmotif, while it offers helpful advice on how to turn spies, punish turncoats, poison wells, and generally deal away with modern-day peasants in feudal lands, speak voiceless underlings. Self-proclaimed Machiavellian corporate strivers and intriguers may be strangely drawn to Il Principe, short enough of a posthumous Renaissance political essay to be digested between cafeteria lunches, where readers will be instructed in the method of acquiring necessary ends by any means, even if they are cruel. Supply chain management (SCM) types will find well-founded solace in being the rightful heirs to no other than Gaius Julius Caesar, partly-Consul and mostly-Dictator of the Roman Republic, his only regret when crossing the Rubicon not having had the SAP BI Platform to help track the dwindling corn supplies which would cripple his Gallic campaign. And finally, if you’ve been too successful a manager, beaten the competition to a pulp, and even your grinning shareholders are worried about your Emotional Intelligence (EI) score, there’s always Hildegard of Bingen to help you get back in touch with your inner Medieval Benedictine abbess, herbalist, poet, and channeller (the lesson there: don’t be afraid of your own success!).

But no, we (in IT) shall have none of that! We prefer such solemn encouragement as “attitude is a little thing that makes a big difference” from noted statesman, gifted orator, and arguably one of the greatest 20th century task masters in a distributed environment, The Right Honourable Sir Winston Churchill. Churchill managed one of the largest physically distributed field operations of his days by a set of rules that are prescriptive for any remote IT engagement:

  • Plan (vigorously);
  • Communicate (constantly);
  • Collaborate (and get the best out of others);
  • Be proactive (and always visible);
  • Govern (keep and refine metrics of success);
  • And, of course, persist (never, never, never give up – remember this is the man who said: “If you’re going through hell, keep going.”).

To optimize outcomes, Churchill was fond of running alternative scenarios, a quick A vs. B “hypothesis testing” for every decision he made. I’ve applied the same method, including some probing questions, for helping us determine an optimal approach for setting up a remote resourcing environment:

  • Captive vs. Non-Captive:
    The benefits of a captive offshore operation are obvious (dedicated resources, significant cost savings after start-up costs are recouped / no middleman, full control / security, quality imprint, in-house culture / communication, in-market sales presence, etc.); but some of the drawbacks may be less obvious (static resourcing / difficulties with right-skilling and load-balancing, dependence on single geography / economy / labor market can mean wage inflation / talent shortage / staff attrition, bench- and lead-time challenges responding to user demand, etc.). What criteria would you use to weigh the benefits/drawbacks of a captive vs. a non-captive offshore operation?
  • “DIY” vs. Managing Vendor:
    Faced with the task of setting up and managing a portfolio of multiple, sequential vendor relations, what ‘value equation’ would persuade you to outsource vs. in-house the management of that portfolio? (E.g., managing-vendor expertise, economies of scale associated with managing the costs of (sequential) vendor discovery, setup, transition, and ongoing coordination, etc.)?
  • Single Partner- vs. Multi-Vendor:
    When considering a non-captive offshore operation, what decision criteria would you use to establish a partner-based vs. a vendor-based approach? (E.g., cost- / risk-sharing, price breaks based on volume, other commitments from a single partner vs. “best-of-breed” every time / breadth and depth, flexibility / no single point of dependence when sourcing from multiple vendors, etc.)
  • Tier-1 vs. Tier-2:
    What is your experience working with tier-1 vs. tier-2 vendors? (E.g., professionalism, process maturity / CMM:5 vs. entrepreneurship, “working with heroes,” etc.). Can you relate to the statement “quality is not a function of size”?
  • Offshore Success – Inhibitors vs. Enablers:
    In your experience, what are some of the key inhibitors (e.g., potential lack of capital, scale, reach, process maturity, ‘hidden costs of offshoring,’ etc.) and enablers (e.g., people, process, technology) to offshoring success? Do effective Service Level Agreements (SLAs) increase the chances of success?
  • India vs. ‘The Rest of the World’:
    Have you had experience resourcing from some of the “other” offshore regions: South America (e.g., Argentina, Brazil), Eastern Europe (e.g., Romania, Ukraine), North Africa/Egypt, Southeast Asia (e.g., Vietnam), China? How would you relate this to your ‘India experience,’ if any, in terms of critical success factors (e.g., quality, flexibility, cost – i.e., is India – with its ~30% staff turnover and ~20% wage inflation – trending after Ireland which priced itself out of the call-center business in the 90s?)?
  • Synchronous vs. Asynchronous:
    What are the key drivers for you to insist on time zone overlap to enable synchronous (e.g., U.S. / South America) vs. asynchronous collaboration (e.g., U.S. / India)? What experience have you had, if any, with more advanced “follow-the-sun” and multiple-shift 24×7 development / support models?
  • Standalone vs. Distributed:
    Have you noticed an increase in complexity managing remote resources as part of a distributed (onsite-offsite) team vs. managing them on a standalone basis?
  • The “Impossible Triangle” of Quality, Flexibility (Availability), and Cost – Tradeoff vs. Optimal:
    Trying to optimize all three dimensions (quality/flexibility/cost – or for project-based work: scope/schedule/cost), how would you prioritize them in order to further drive profitable growth? Furthermore, how important is the “4th” dimension (control)? Does the (relative) importance of control (project management / outcomes ownership) influence your structuring of offshoring engagements: staff augmentation vs. project outsourcing, Time & Materials (T&M) vs. Fixed-Price Contracts?
  • Today vs. Tomorrow:
    Is the impending shortfall in workers and skills (“Talent Shortage/War For Talent”) due to demographics / macroeconomics already impacting your firm? Or, impacting your future resource planning? And, given how technology and globalization are re-shaping both the workplace and the workforce, are you looking at alternate strategies for sourcing and deploying talent (globally, virtually)?

Afraid of The Invisible Man (or the Remote IT Worker), Part II?

If anybody needs convincing that viable communication is about mostly standards of expression, lots of common sense, and just a little of that black magic known as linguistic sensibility, there is, at least this week, a sign for all visitors of the 10th floor of the steel-and-glass-enshrined headquarters of a Western European banking power to read: “WC out of order – use floor below.” That much, of course, for linguistic sensibility. Who needs a sense of subtlety when communicating about IT topics, you might ask, where – heaven be thanked – there are standards that most IT professionals recognize? But, as my mentor in all things ITIL used to note, the good thing about IT standards is that there are so many to choose from.

Since I mentioned the “Parity Principle” in my last blog just a few days ago, I’ve received a handful of responses from IT managers who’ve been kind enough to supply empirical data points to support said assertion: namely (and as a reminder) that the additional managerial overhead required to supervise a team of remotely located (as opposed to locally stationed) IT workers is, very, very roughly put, 120% of the comparable supervisory effort involved in working with regular, local folks. For an IT organization that has, for that very purpose of managing in a distributed work environment, implemented a set of best practices around standardization, formalization, and overall project management discipline, the resultant increase in productivity has been judged to be at an equal 120% of work output levels prior to “having to become a little more formal and disciplined” (similarly, these are rough, rough estimates – as we shall get more scientific later on). Voilà: if you spend a little more time managing remotely you gain the same back in terms of improved efficiencies. (The additional benefits of working with a remote person, such as cost savings through lower, offshore wages or access to specialized and perhaps locally unavailable talent have, of course, not been factored into the equation yet!)

As we wait for Google Wave with bated breath to give us the project war room to end all IT wars and war rooms, here are a number of communication tools that clients have found indispensable when managing remote IT workers:

Collaborative sites:

  • Google Sites;
  • SharePoint;
  • Wikis (see wikipatterns.com for adoption).

Messaging tools:

  • Campfire;
  • Digsby.

VoIP:

  • Google chat;
  • Skype with business control panel.

Issue tracking systems:

  • Google Sites;
  • Jira.

Project management tools:

  • Agile Buddy;
  • Google Sites;
  • Pivotal Tracker;
  • Xplanner.