Why does Work Suck?

If you’d like to know the answer that question, I have a new book for you to read: “Why Work Sucks” by Cali and Jody.

This book (which I haven’t started reading yet…but I plan to start soon) seems to follow the Ricardo Semler approach to organizational developing as outlined in “Maverick” and “Seven Day Weekend“.

The book introduces the concept of a Results Only Work Environment (ROWE). An excerpt from Cali and Jody’s website describes ROWE as:

In a ROWE, people are paid for a chunk of work, not for a chunk of time. This simple idea creates a workforce that is energized, focused, disciplined, and happy, and it’s already transformed the corporate work culture at Best Buy - a Fortune 100 retailer.

Their Book Page has this to add:

In a “Results-Only” company or department, employees can do whatever they want whenever they want, as long as business objectives are achieved. No more pointless meetings, racing to get in at 9:00, or begging for permission to watch your kid play soccer. No more cramming errands into the weekend, or waiting until retirement to take up your hobbies again. You make the decisions about what you do and where you do it, every minute of every day.

Results Only Work Environment’s (ROWE’s) are an ideal situation for any organization who wants their employees to truly be happy. This environment makes it OK for employees to go grab a coffee with a friend at 10AM or go run a few errands whenever they need to.

ROWE seems counter-intuitive to some people…but makes perfect sense to anyone who’s ever sat through a 8 hour day thinking about how they will get their errands accomplished for the week.

One particular area that I’m interested in exploring, and what has touched off my book idea, is integrating ROWE with a common sense approach to business.  How do we remove the layers of bureaucracy that exists in many organizations (e.g., adherence to antiquated procedures, 4 hour meetings with no outcome, etc).

Specifically, I’m interested in exploring the topic of ROWE in the IT space.  How would this type of environment work in an IT organization with the strict focus on process and procedure? How will a project based IT organization adapt to a results focused environment where people have the freedom to work when and where they want?

Look for more thoughts on these questions in the future.  Until then, read more on ROWE and Semler’s approach to organizations with the following articles.



Book Review: The Strategic Project Leader

I just finished reading The Strategic Project Leader: Mastering Service-Based Project Leadership by Jack Ferraro….not a bad book.

In section two of his book, Mr. Ferraro writes:

In project management, leadership is desperately needed; leadership that is adaptable, perceptive, timely, meaningful, authentic, and unselfish.

This one sentence sums up the core of The Strategic Project Leader’s message: Project leaders, not project processes, are the future for project management. As the first section carefully lays out, the codification and standardization of project management knowledge has created a commoditized service that can be bought and sold like any other product. However, project managers can resist the force of commoditization by adding personal value to their organizations through leadership.

Ferraro defines a new role for the project manager seeking to be the spearhead of change – the service-based project leader. As the book points out, this role of ‘Project Leader’ is an area of untapped potential in project management. This kind of leadership requires a project manager to provide service not only to a sponsor but to all the project’s stakeholders. By truly serving the needs of organizations and individuals, project leaders find themselves doing meaningful work, a factor that is linked to personal growth and great job satisfaction. Due to the highly personal and individual nature of leadership, it cannot be codified and standardized into a ‘methodology.’

The first section of the book is devoted to this idea of leadership in project management and provides guidance as to how to step up into a leadership role. However, Ferraro also introduces several critical topics not usually found in project management books. He discusses the importance of establishing trust-based relationships with clients, and putting the needs of the client first, ideas that are central to high-level project leadership.

The second section of the book provides more concrete information in the form of a ˜leadership competency framework” that is comprised of five ˜core competencies”. This competency framework is presented in the form of a pyramid:

  • Project & Program Management Knowledge, Skill & Experience
  • Subject Matter Expertise
  • Trust-based Relationships
  • Consultative Leadership
  • Courage

While knowledge of project management processes is necessary as the base of this pyramid, project leaders must move beyond this to become true consultative leaders.

The third section helps the reader create practical self-development plans – a step-by-step guide to improving leadership skills. The final section, written by Roberta Hill, provides a detailed overview of a variety of assessment methods.

Smoothly written and easy to read, The Strategic Project Leader is an indispensable guide to anyone looking to be a leader among project managers.

NOTE: This book was provided by the publisher as a review copy.

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Factors affecting Productivity - IT, Management and Process

Interesting analysis today over on Jeffrey Phillips’ Thinking Faster Blog in an article titled “Productivity Barriers“.

In the article, Phillips discusses a recent newsletter from IFS (an ERP software vendor) that discussed the issues of usability of ERP systems. In the newsletter, IFS relates survey results that tried to, in Phillips’ words, understand:

…how much of a barrier the enterprise software most of us use everyday presents to becoming more productive

The research that IFS presented is quite interesting (click here to read the results on CIO.com). In addition to looking at usability, the research looked at productivity and asked questions around what factors caused a loss in productivity in the organization. The results aren’t surprising…results included things like (not in any order):

  • too many emails
  • too much work
  • lack of clear priorities
  • poor IT optimization
  • too many meetings

The survey respondents were than asked to supply factors that effected their own productivity and, again, the results aren’t really that surprising…results included things such as unclear objectives, not enough resources, too many meetings, etc etc.

What I found most interesting was Phillips’ take on the root causes of the above issue. He writes:

  • Unclear objectives/priorities - poor management strategic direction and communication
  • Too many meetings - poor management skills and time management
  • Too much work/Lack of resources - downsizing and “doing more with less”
  • IT not optimized/doesn’t work the way the company works - inflexible technology supporting a business that is required to be flexible and change
  • So, in my simple analysis, many of the issues related to productivity have to do with clear management direction and communication, and the ability to communicate what’s important. Additionally, in today’s market, flexibility and adaptability are just as important as established processes and operational excellence, but our technology, systems and processes aren’t designed that way.

Jeffrey Phillips’ hits it on the head.

Most problems with productivity today can be traced to a few factors (at least in my experience). These are:

  1. Poor Alignment of Information Technology and/or IT Process to the Business goals - If your organization needs to be flexible, don’t put in an inflexible IT system and/or IT process.
  2. Reliance on formal IT process - Process is good. Process is necessary. Create process to allow for flexibility, speed and change. Most processes today in the IT world do not follow this mantra. They are created and then their creators expect people to follow them closely with no deviation and no room for change.
  3. Poor Communication - Managers need to understand that in order to get the most of their teams, they need to clearly outline the responsibilities and expectations of the people in their teams. Without this clear communications, people will spend time trying to determine what they should be doing and/or who should be doing it.
  4. Poor Leadership - with good leadership, an organization can overcome many things. Excellent leaders will overcome poor process (by changing the process), poor alignment (by aligning IT and business), and poor communication (by ensuring communication improves).

Phillips’ analysis of the results of the IFS study were right on the mark….or at least they match up with my own thougths :)



A Thought on Employee Engagement

Employee engagement has been seen as a ‘buzzword’ for some time but also been touted as something that every organization should focus on. It appears that there is some progress toward engaging employees (see the “Further Reading” below) but of course, many organization’s just don’t “get it”.

Instead of talking about how to engage employees (like I’ve done here and here), I wanted to take a second to address one simple little topic that any organization and/or person can implement that will help with employee engagement…or more importantly, help not to disengage employees.

What is the tiny & simple thing that you can avoid doing?

Don’t make your employees feel like under-appreciated (or worse unappreciated) drones.

Example

You bust your hump working overtime to bring a project in on time. You put in 50 to 60 hours and your team does the same. Each team member has demonstrated their abilities to get the job done many times over and morale is quite high.

After the project is complete and you’ve got some down-time, you have an opportunity to attend a seminar. The seminar is free and is directly related to your job and is being held at a local restaurant over lunch. You sign up for the seminar (hey…its free food an an interesting topic right?) and tell your boss that you plan on attending the seminar and then going home and plan to work from there the rest of the afternoon. Your bosses’ response:

Sure…go ahead..sounds interesting. But…I’m not sure I’m comfortable with you working from home…you’ll need to take a half-day off to do this.

Talk about pulling the wind of your sails….perfect way to disengage an employee.

Remember…if you want to get your employees more engaged, make sure they know they are appreciated. Pay attention to the small things…take an afternoon and go bowling with the team. Buy them a pizza occasionally. It’s usually these small things that will benefit you the most….and hurt the most if you don’t attend to them.

Further Reading:



Common Sense and Technology Selection

When did common sense get removed from the corporate technology selection process?

For those that don’t know what it is, technology selection is the process by which an organization decides which technology platform (software, hardware, etc) will be used for a particular application and/or piece of the business. For example, selecting an organization’s Content Management platform (e.g., Sitecore, Interwoven, Vignette, etc).

Using a common sense approach toward selecting technology seems reasonable. To take this approach, a person doesn’t need to be an expert…just someone that can think through things and apply common sense to the selection process.

How would one approach selecting technology without using common sense? Glad you asked…and I guarantee you that you’ve seen this before. :)

  1. Hear about the ‘latest technology’ and/or hear a buzzword.
  2. Think “yes…we need that….that will make everything better!”
  3. Talk to a few vendors.
  4. See a demo.
  5. Buy the platform
  6. Throw it over the wall to the technology group to implement.
  7. Go look for your next buzzword.

This approach happens more often than you would think. There are so many things wrong with this approach. Common sense has been thrown out the window.

I’ve personally seen this approach taken in many organizations when the leadership team decides that ‘X Technology’ is going to be their savior (note to people…technology will rarely save you) and they ignore the “common sense voice” in their head. Very rarely do these types of approaches work.

To compare, let’s look at the approach that I follow when assisting organizations in selecting a new platform…it isn’t necessarily the ‘right’ way…but it has worked for me…and I think it’s an extremely simple and common sense approach:

  1. Take a look at the organization’s strategy for the future
  2. Look at the technology strategic plan (if one exists)
  3. Build a business case (if not already created)
  4. Ensure that the organization’s strategy is aligned with the technology strategy (many times it doesn’t)
  5. Work closely with the information technology/systems group to understand their current capabilities
  6. Find an answer to the question of “What are you trying to accomplish with this technology?”
  7. Perform some risk analysis (e.g., affect of the new technology on current processes, etc.)
  8. Take a vendor agnostic stance
  9. Look at all available options (including current systems) to find the ideal solution.
  10. Develop a comparison of solutions with strategic direction
  11. Choose a platform
  12. etc.

I could keep going…but you get the point. Common sense stuff, right? Basically, you look at where you are trying to go and choose the technology that will help you get there. How hard is that? Apparently….very difficult for most organizations.

How can we get common sense back into the technology selection process? If you have some ideas…I’d love to hear them.



IT Human Capital as Competitive Advantage

This is an excerpt of a paper I’ve just completed titled “Information Technology Human Capital as Competitive Advantage”. I’ve provided a brief intro plus the conclusion here. This white paper was the inspiration for the the topics discussed in my previous posts titled “Resource Diversity & Immobility Simplified“, “Competitive Advantage and the Resource Based View of the Firm“, and “Competitive Advantage - The Human Capital approach

To read the entire article, download the PDF titled Information Technology Human Capital as Competitive Advantage“.


Purpose of this paper

This paper provides a brief review of the literature within the space of information technology and business alignment, and more specifically, the areas of creating competitive advantage by managing human capital to create a sustainable advantage in the marketplace.

Introduction

In today’s ever-changing world, organizations must learn to evolve, adapt and continuously rethink their strategic objectives and operational abilities. As part of this strategic planning process, organizations have historically looked at two aspects; strategy (how they will go to market, what they will sell, etc) and execution (how to implement the strategy, how to do business, etc). The seminal research on strategy and competitive advantage (Andrews, 1986; Porter, 1998a, 1998b) historically overlooked two of the most important aspects of any strategy; technology and people.

In the 1990’s, researchers and practitioners began looking at merging technology into the strategic planning process and how the alignment of business strategy with information technology can help to create a competitive advantage (Henderson & Venkatraman, 1993). These researchers had brought technology into the strategic planning process, and in some respects they considered the human resources of the organization, but they still overlooked the people as being a valuable piece of capital that could be used to create competitive advantage.

This oversight is most visible within the information technology (IT) groups. Even though many organizations and researches stressed the need for IT and business alignment, they still seemed to overlook the human capital aspect while aligning IT and business strategy.

These oversights have led to the current environment of overworked, disengaged and misaligned IT personnel and IT groups. The “turnover culture” that has arisen within the IT industry provides some evidence of the unhappiness and/or discontent that most IT personnel have (Moore & Burke, 2002).

Recent research has provided a path to the solution of the problem of creating sustainable alignment between IT and business strategy. These solutions involve not only aligning IT and strategy but also implementing human capital management practices to ensure that people are considered as much of a resource for creating competitive advantage as any other asset within the organization (Hu & Huang, 2006; Robert, Agarwal, & Ferratt, 2000).

This paper provides a review of existing literature related to the strategic alignment of business and information technology and human capital management practices. The first section, titled “Alignment of IT with Business Strategy” provides a review of existing business and IT alignment research. The second section, titled “Human Capital Management, IT & Business Alignment” provides an overview of existing research into human capital management practices within the IT space.

The third section, titled “Human Capital as Competitive Advantage” outlines the use human capital as a means to gain competitive advantage in the marketplace. Lastly, the fourth and final section titled “Future Research and Conclusions,” outlines areas that may provide avenues of further research and concludes the paper.

To read the entire paper, download the PDF titled “Information Technology Human Capital as Competitive Advantage“.


Further Research and Conclusion

Further research into this area can follow Ferratt et al.’s (2005) study of the effects of human resource management on information technology (IT) employee turnover (Ferratt et al., 2005) and Joseph et al.’s (2007) suggestion that adopting a human capital management approach to managing IS employees may increase employee engagement and reduce turnover and job dissatisfaction (Joseph et al., 2007).

Another area of further research that could be considered is Huang and Hu’s (2007) approach of combining human capital management along with a business-IT alignment model by using a balanced scorecard system to implement and measure alignment. This balanced scorecard approach seems reasonable but very little quantitative data exists to measure the success or failure of this approach (Huang & Hu, 2007). Further research into the use of balanced scorecards to align IT, business and human capital management practices could be accomplished by collecting quantitative data in multiple organizations to provide more insight into the success and/or failure of this approach.

Yet another avenue for further research is within the area of validation of alignment of IT system requirements with business strategy (Bleistein, Cox, & Verner, 2005). Bleisten et al.’s research provides a framework for measuring and ensuring that all IT system requirements are in alignment with business goals. This research is interesting but as yet unproven.

Lastly, research into furthering the application of the resource based view of firms and the creation of resource diversity and resource immobility within organizations seems to be a fairly wide open area. In many organizations today, outsourcing work has become the norm as has hiring contractors instead of full-time employees. Many research questions arise from this. A few examples are:

  • How can an organization create resource diversity and/or resource immobility when they are drawing from the same talent pool of outsourcers and independent contractors as their competitors? This is an idea that is very interesting and something worth pursuing.
  • How can an organization segregate IT projects so that non-strategic projects (is there such as thing?) are managed with non-strategic assets and resources while strategic IT projects are managed with strategic assets and resources.

There is still considerable research to be done to better understand how to create sustainable advantage using technology and people. The areas of information systems, strategic human resource management and organizational behavior can provide models to help create sustainable advantage and value for organizations.

In order to truly create sustainable competitive advantage, an organization must have the right strategy, technology and people in place. In today’s world, it isn’t enough to have only one or two of these; an organization must obtain and maintain the mix of the right strategy, the right technology and the right people.


A Full References list is found in the paper.
[tags] organization, Human Resources, information technology, Strategy, Management, HR, Project, Technology, culture [/tags]


HR World - 30 Questions you can’t ask

HR World has a new article titled “30 Interview Questions You Can’t Ask and 30 Sneaky, Legal Alternatives to Get the Same Info“.

At first, the title seemed to turn me off to the advice, but after reading through it, I’m OK with it but would have preferred a different title without the word “sneaky”.

There is some good advice for interviewers in the article. For example, one of the illegal questions and its legal alternative is:

What you can’t ask: Are you a U.S. citizen?

Although this seems like the simplest and most direct way to find out if an interviewee is legally able to work for your company, it’s hands-off. Rather than inquiring about citizenship, question whether or not the candidate is authorized for work.

What to ask instead: Are you authorized to work in the U.S.?

Another interesting example:

What you can’t ask: Have you had any recent or past illnesses or operations?

Again, gauging commitment is important, but illness isn’t something that most people can help.The answer here is to make sure that the candidate can perform the job while avoiding questions about his or her physical abilities.

What to ask instead: Are you able to perform the essential functions of this job with or without reasonable accommodations?

The article does a good job presenting illegal questions and alternative questions that an interviewer can use to gather as much information as possible.

Perhaps an unintended accomplishment of the article is to educate people that are interviewing as to what some key phrases in job descriptions and interviews might be and what they might mean. For example:

What you can’t ask: Do you have or plan to have children?

Clearly, the concern here is that family obligations will get in the way of work hours. Instead of asking about or making assumptions on family situations, get to the root of the issue by asking directly about the candidate’s availability.

What to ask instead: Are you available to work overtime on occasion? Can you travel?

This is an interesting question. Instead of directly asking if you have children, the interviewer might ask availability questions…knowing that these types of questions might be alternatives to the question such as ‘do you have children’ or a similar question might help the interviewee better understand the job.

Its an interesting article and definitely worth reading.

[tags] HR, people, Leadership, organization, Human Resources [/tags]



Competitive Advantage and the Resource Based View of the Firm

As a follow up to my previous post titled Competitive Advantage - The Human Capital Approach, I wanted to take a second to talk a little bit about the Resource Based View of the firm that I mentioned in the previous post

Most organizations don’t place a high enough focus on human capital management as a component of competitive advantage. In order for an organization to be successful in any market, they must create value for their clients. This value can be created using a new strategy, new technology or some other ‘gimmick’ but in order to sustain this value (and the competitive advantage it brings), organizations must develop and maintain an engaged, knowledgeable and creative workforce (Afiouni, 2007).

To create a workforce that provides sustainable competitive advantage and value creation, an organization must create an environment that allows their human capital to grow, much like money sitting in an interest bearing account does. This growth, expressed within people as increased knowledge, increased motivation, increased engagement, etc can be used to create competitive advantage that would be very difficult for competitors to imitate (Afiouni, 2007; Agarwal & Ferratt, 2001; Luftman & Kempaiah, 2007).

Out of the many theories of organizational behavior, one aligns itself well with the human capital view of people within an organization. This theory, called the Resource Based View (RBV), suggests that the method in which resources are applied within a firm can create a competitive advantage (Barney, 1991; Mata, Fuerst, & Barney, 1995; Peteraf, 1993; Wernerfert, 1984). The resource based view of firms is based on two main assumptions: resource diversity and resource immobility (Barney, 1991; Mata et al., 1995). According to Mata et al. (1995), these assumptions are defined as:

  • Resource diversity (also called resource heterogeneity) pertains to whether a firm owns a resource or capability that is also owned by numerous other competing firms, then that resource cannot provide a competitive advantage.
    • As an example of resource diversity, consider the following: a firm is trying to decide whether to implement a new IT product. This new product might provide a competitive advantage to the firm if no other competitors have the same functionality. If competing firms have similar functionality, then this new IT product doesn’t pass the ‘resource diversity’ test and therefore doesn’t provide a competitive advantage.
  • Resource immobility refers to a resource that is difficult to obtain by competitors because the cost of developing, acquiring or using that resource is too high.
    • As an example of resource immobility, consider the following: a firm is trying to decide whether they should buy an ‘off-the-shelf’ inventory control system or have one built specifically for their needs. If they buy an off-the-shelf system, they will have no competitive advantage over others in the market because their competition can implement the same system. If they pay for a customized solution that provides specific functionality that only they implement, then they will have a competitive advantage, assuming the same functionality isn’t available in other products.

These two assumptions can be used to determine whether an organization is able to create a sustainable competitive advantage by providing a framework for determining whether a process or technology provides a real advantage over the marketplace.

The resource based view of the firm suggests that an organization’s human capital management practices can contribute significantly to sustaining competitive advantage by creating specific knowledge, skills and culture within the firm that are difficult to imitate (Afiouni, 2007; Mata et al., 1995). In other words, by creating resource diversity (increasing knowledge and skills) and/or resource immobility (a culture that people want to work in), sustainable competitive advantage can be created and maintained.

In order to create human capital resource diversity and immobility, an organization must have adequate human capital management practices, organizational processes, knowledge management practices and systems, educational opportunity (both formal and informal) and social interaction (i.e., community building) practices in place (Afiouni, 2007; Barney, 1991; Mata et al., 1995; Schafer, 2004).

NOTE: I am finishing up a White paper on the topic of Competitive Advantage & Human Capital and hope to have it available within the next week or so…check back soon.

References

  • Afiouni, F. (2007). Human Resource Management and Knowledge Management: A Road Map Toward Improving Organizational Performance. Journal of American Academy of Business, Cambridge, 11(2), 124.
  • Agarwal, R., & Ferratt, T. W. (2001). Crafting an HR strategy to meet the need for IT workers. Association for Computing Machinery. Communications of the ACM, 44(7), 58.
  • Barney, J. B. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99-120.
  • Luftman, J., & Kempaiah, R. M. (2007). The IS Organization of the Future: The IT Talent Challenge. Information Systems Management, 24(2), 129.
  • Mata, F. J., Fuerst, W. L., & Barney, J. B. (1995). Information technology and sustained competitive advantage: A resource-based analysis. MIS Quarterly, 19(4), 487.
  • Peteraf, M. (1993). The cornerstones of competitive advantage: A resource-based view. Strategic Management Journal, 14, 179-191.
  • Schafer, M. (2004). Why Workforce Management Is Back In Style. Optimize, 67.
  • Wernerfert, B. (1984). A resource based view of the firm. Strategic Management Journal, 5, 171-180.

[tags] competitive advantage, technology, resource based view of the firm, human capital, organization [/tags]

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Competitive Advantage - The Human Capital approach

I was asked recently to describe how an organization can use its human capital to create competitive advantage.

I fell into the trap of using Porter’s descriptions and other schemes of describing what it is and how to achieve it and while I was talking I saw eyes glazing over and people losing interest very quickly. I had to find another way to describe competitive advantage and quickly.

The ‘usual’ definition of competitive advantage goes something like this (from QuickMBA):

When a firm sustains profits that exceed the average for its industry, the firm is said to possess a competitive advantage over its rivals. The goal of much of business strategy is to achieve a sustainable competitive advantage.

Michael Porter identified two basic types of competitive advantage:

  • cost advantage
  • differentiation advantage

A competitive advantage exists when the firm is able to deliver the same benefits as competitors but at a lower cost (cost advantage), or deliver benefits that exceed those of competing products (differentiation advantage). Thus, a competitive advantage enables the firm to create superior value for its customers and superior profits for itself.

That’s an awful lot of big words that really don’t provide a lot of actionable information, especially if you are trying to understand how to use people to create sustainable competitive advantage.

I hit upon the following definition and example and these seemed to stick fairly well…these aren’t mind-blowing but they were effective. My definition:

In order to gain competitive advantage, you must do something different than your competitors in such a way as to make it difficult (hopefully impossible) to imitate.

The above definition was easier for the audience to understand but they still wanted an example to help clarify and solidify what it really means to gain competitive advantage.

After thinking for a few minutes, I came up with the following example….maybe its not the best but it definitely helped the audience get a good grasp of how to use their human capital to create sustainable competitive advantage.

Suppose you’re the owner of an American football team and you’re trying to find a way to ensure that your team wins. What do you do?

Do you…

  • Spend millions on the best technology?
  • Spend millions on a new stadium?
  • Move your team to a new city and hope it works out?

These things might help attract a larger fan base and perhaps bring you more revenue but will they help you win? In football, the superfluous things such as technology,stadiums, etc mean nothing if the team is a losing every game. People won’t pay to see your team play if they lose. So what do you do?

You hire the best coaching staff and players that you can. Your coaching staff spends months (years?) ‘training’ and coaching these players to create a cohesive team that works well together. The coaching staff understands the strengths and weaknesses of the individual players and develops offensive and defensive schemes to take advantage of the strengths and hide the weaknesses.

Now…any other team can imitate the plays that your coaches develop. They can try to imitate the coaching style and the players…but they will fail. Unless they take your players/coaches from you, they will never be able to fully imitate your team.

Your competitors can always try to hire better people and develop better schemes but if you are doing your job as the owner of the football team you should be constantly evaluating your team to ensure that you have the right people with the right training in the right places to ensure success.

The ability to create a unique team is one of the most cost-effective ways to create real sustainable advantage in the marketplace (and in my opinion, the only way).

You can try to use technology, marketing or other approaches but unless you develop those approaches internally they will not provide sustainable advantage because your competitors can use the same approaches to match your every move.

Using the people within your organization to create advantage is one of the most overlooked methods in business today. In most organizations I’ve been a part of, the organization try to mold people to fit the organization rather than create an organizational model that fits the strengths and weaknesses of its people.

I’m planning on expanding on this topic a bit more in later posts by discussing a theory called the Resource Based View of the Firm. This theory states that by creating resource immobility and resource diversity, a firm can create sustainable competitive advantage. Check back for more.

[tags] Resource Based View of the firm, Competitive Advantage, Human Capital, organization, HR,people, strategy [/tags]

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Organizational Alignment and Project Success

Organization Alignment seems like one of those ‘touchy feely’ things that most technical folks would rather not discuss but it’s actually quite relevant to success in todays technology and project driven organizations.

Organizational alignment is the practice of aligning an organization’s strategy and culture. In other words, organizational alignment helps to ensure that ‘what gets done’ is in line with ‘how things get done’ and vice versa. For a more detailed description of organizational alignment, take a look at the article on Organizational Alignment on Vanguard Consulting’s website.

As mentioned, Organizational Alignment is the act (or art?) of aligning strategy and culture. The field of strategic planning and organizational strategy is a very well researched and fairly well covered in academia (and blogosphere) so I won’t go into the ’strategy’ aspect but I will cover the ‘culture’ side here.What does organizational alignment have to do with project success? In my opinion, everything.

For a project to be successful, an organization must have its strategic goals aligned with its cultural values…and projects must also be aligned with the organizations’ culture and strategy. Consider the following brief example (paraphrased from Vanguard Consulting’s website):

Assume that the goal of your organization is to create a flexible service delivery model to allow you to be flexible for your clients. You’d want to make sure that the organization is aligned to meet these goals by having flexibility as a core value. You wouldn’t want to implement a ‘command and control’ structure that requires everyone to get approval before acting. The command and control structure would completely counteract the stated goal of flexibility for your clients.

The cultural aspect of organizational alignment covers ‘how things get done’ (while the strategic aspect covers ‘what gets done’). The ‘how’ covers the values, behaviors and processes for getting things done, which are things that can be addressed across the organization using various methods, such as the implementation of a Project Management Office (PMO).

Many organizations have implemented PMO’s to standardize project management methodologies, align projects with corporate strategy and act as a central point of management for all things projects. The majority of these PMO’s usually don’t address the values and behaviors across the organization. In fact, most definitions of a PMO only describe the use of a PMO to standardize project processes and align projects with strategy but values are usually overlooked.

A PMO is a good thing for most organizations but its doesn’t go far enough to ensure alignment. Standardizing project methodologies can be a good thing but standardization doesn’t go far enough to address the issues of values and behaviors. The PMO, by definition, isn’t setup to address values and behaviors but could easily be converted into an office to help align values, behaviors and process and perhaps it could be renamed the ‘Project & Alignment Office’ (PAO).

So….after all of that (and my creating the PAO!), how do we ensure project success by organizational alignment? We don’t…you can never ‘ensure success’…but we can help set projects on the path towards success by working to align the ‘how’ with the ‘what’ and the ‘why’.

Look for more to come on organizational alignment and projects…and maybe even more on the newly created PAO :)
[tags] Project Management, organization, Strategy, Projects, Project, Strategic Planning, culture [/tags]

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