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© 1995 Society for Information Management & IBM Corporation 1
SIMIBMWorking Group on Reshaping IS Culture
© 1995 Society for Information Management & IBM Corporation 2
Working Groupon ReshapingIS Culture
SIM IBM
Duane TruexAssociate Professor
Computer InformationSystems Department
Robinson College of BusinessAtlanta, Georgia
© 1995 Society for Information Management & IBM Corporation 3
• Sim Working Group• Study Method• Key Findings• 7 Stage Model Principles Practices
PresentationOverview
Working Group on Reshaping IS Culture
SIM IBM
© 1995 Society for Information Management & IBM Corporation 4
CORE TEAM: Chairperson: Janet Caldow, IBM Corporation
Loy Allen SABRE Decision Technologies Barbara Bell-Hawkey Merck & Company, Inc. Fred Faccenda Prudential Asset Management Group Willie Fields Kraft General Foods Jeanne Fraser Integrated Systems Solutions Corporation Ken Jackson Mitchell Titus & Company Jim Love ITT Hartford Ephraim R. McLean Georgia State University James Routh American Management Systems V. Sambamurthy Florida State University James A. Senn Georgia State University Michael Shank Renaissance Vision Stanley Smits Georgia State University Duane Truex Georgia State University
EXTENDED TEAM:
Cliff Hallberg Interpersonal Technology Group Michael Kretsch Diana Bander Associates Jim Lamoin Aetna Life and Casualty John Weathers IBM Information and Telecommunications Systems
© 1995 Society for Information Management & IBM Corporation 5
The Working Group Developed the Research Design(1)
• Surveyed existing literature
• Identified cultural variables
• Identified leading I/S organizations, as reflected in the professional press - InformationWEEK 500 - Computerworld 100 - CIO 100 - Sim Partners in Leadership Award - Sim Juried Paper Awards Winners
© 1995 Society for Information Management & IBM Corporation 6
The Working Group Developed the Research Design(2)
• Letter and telephone contacts requesting cooperation - 22 companies - 7 participated
• Structured interview guide - Individually - Small groups
• One-to-two day on-site visits using two-person teams
© 1995 Society for Information Management & IBM Corporation 7
Research Objectives
• At the level of organizational culture
• How do the IT Unit, Business Unit, and Parent Organization interact?
• Are they the same or different?- coexist- submit- subsumed
• Are the cultures ‘aligned’?
© 1995 Society for Information Management & IBM Corporation 8
OrganizationalCulture
• NOT ‘Societal Culture’- too big and inclusive a concept
• Organizational Culture- That which makes us ‘we,’ ‘insiders,’ an identifiable group with shared values
• A Social Construct- shared values and ways of...- meaningful orders to group members- common beliefs
© 1995 Society for Information Management & IBM Corporation 9
SIM IBM
© 1995 Society for Information Management & IBM Corporation 10
•On hours•Stress•Reengineering•High performance•Virtual organizations in time and space
•Unrelenting Competition•Downsizing•Fast Growth while downsizing•Running Scared•No more employement paternalism•Cycle time reduction
It's Monday... 7 Days a Week
© 1995 Society for Information Management & IBM Corporation 11
SevenElementFramework
BusinessLinkages
ManagmentSystems
Structures
ManagingChangeHuman
ResourcesPeople (I/T
professionals)
SEVENELEMENTFRAMEWORK
BusinessLinkages
ManagmentSystems
OrganizationalStructures
ManagingChange
HumanResources
People (I/Tprofessionals)
New TechnologyAdoption
© 1995 Society for Information Management & IBM Corporation 12
Key Principle
IS Unit:
get closer to thebusiness
© 1995 Society for Information Management & IBM Corporation 13
Form, in itself, is not an indicator of high performance.
The study group fell into four different categories.
© 1995 Society for Information Management & IBM Corporation 14
Characteristics• All IS activities distributed to /belong to the business unit - each site directly serves customers• All employees are culturally similar• IS skills not shared across sites• Corporate standards may exist
FormRadically Decentralized;
Culturally Indistinguishable(Hologram)
© 1995 Society for Information Management & IBM Corporation 15
FormCultural SeparatistCharacteristics
Wholly centralized I/S, and wholly centralized corporate management Separate but unequal - existing in separate locations - no career track from IS to corporate Individual, identifiable cultures; not co-mingled Shared business mission and strategy (culture is not glue, strategy is)
© 1995 Society for Information Management & IBM Corporation 16
Characteristics Leverages both centralized and decentralized worlds Centralized architecture, standards, cross business unit development projects Decentralized ownership andcontrol: - development, projects, and staffing move to business units Mixed bag of cultures where IS may serve as buffer
FormFederalist Model
© 1995 Society for Information Management & IBM Corporation 17
Characteristics Identifies key skill sets within an entire organization which become the inventory of competency centers As needed, assembles and deploys ‘strike force’ teams from competency centers to business units Strike force composition is dynamic May share elements of culture, but will be perceived as ‘friendly outsiders’ by business units
FormVirtual Technology
Network
© 1995 Society for Information Management & IBM Corporation 18
Competency Models Demand 'Virtual Structures' in the Dynamic Deployment of People and Projects
Competency CentersObject Oriented
Coach
Coach
Coach
Coach
COBOL
Networks
UNIX
Phase I Team
Phase II Team
Phase III Team
Business UnitPeople ProjectTeams Teams
Project Team Leader
Reports to BU
LeaderResponsible for
project,
not people
management
CoachesResponsible for competency center members
•Career growth•Skills development•Knowledge sharing•Performance appraisal•Compensation
© 1995 Society for Information Management & IBM Corporation 19
High Performance IS OrganizationsTrack Business and Technical Skill Development ofthe IS Professional
Knowledge of theBusiness
High value is placed on the IT individual who is both a business expert(e.g., specific insurance) and a technical expert (e.g., Object Orientation)
-Knowledge of Technology-
General
General
Specialized
Specialized
Systems Integrator Bus-Tech Laison
Business Expert Line Manager
IT ‘Expert’ Technical Guru
The ‘IDEAL’A business &Systems Architect
© 1995 Society for Information Management & IBM Corporation 20
Outsourcing/Subcontracting: High-Performance
Organizations Conceptualize and Manage Intellectual Capital at Three Levels
Strategic
TacticalOperational
© 1995 Society for Information Management & IBM Corporation 21
Organizational knowledge isseen as intellectual capitaland treated as a strategicresource.
Thus high-level Outsourcingis seen as a loss of capital.
Strategic
© 1995 Society for Information Management & IBM Corporation 22
Applications leveldevelopment may be jobbedout as long as ownership ofdata and organizational-specific knowledge is retained.
Tactical
© 1995 Society for Information Management & IBM Corporation 23
External expertise ispurchased tomanage coreorganizational skillsand to fill skill setsas needed.
Operational
© 1995 Society for Information Management & IBM Corporation 24
Forge of oldlarge-scaleproject development
Projects
Qualitybegetsquality
The skillstemperedin the forgesof oldlarge-scaleprojects arestill relevant
Skills
© 1995 Society for Information Management & IBM Corporation
© 1995 Society for Information Management & IBM Corporation 25
Cultural Karma
Old World New World
Cultural Karma
Old World New World
© 1995 Society for Information Management & IBM Corporation 26
PrinciplesandPractices
BusinessLinkages
ManagmentSystems
OrganizationalStructures
ManagingChange
HumanResources
People (I/Tprofessionals)
New TechnologyAdoption
PRINCIPLESANDPRACTICES
© 1995 Society for Information Management & IBM Corporation 27
Composite Profile of Seven High PerformanceIS Organizations: Principles and Practices
Business Linkages Create and communicate the ‘vision’
© 1995 Society for Information Management & IBM Corporation 28
• Make the IT/Business ‘vision’• explicit and clear• Vision: oriented toward• partnerships, collaboration,• and co-ownership• Job rotation to solidify• relationships• Hiring:• - fit cultural characteristics,• not just skills• - ideal: some business unit• and IS people to become• indistinguishable•- direct line of sight to the• ultimate customer
BusinessLinkagesP
RACTICES
© 1995 Society for Information Management & IBM Corporation 29
Composite Profile of Seven High PerformanceIS Organizations: Principles and Practices
Management Systems Match capabilities
(people, technology andprocesses) towardmeeting the businessneed
CreatingVision
BusinessLinkages.Create and communicate the ‘v ision’
© 1995 Society for Information Management & IBM Corporation 30
• Leaders communicate well and• often• Leaders create ‘buy-in’• Three stage leadership
•- Visionary•- Implementor•- Consolidator
• Risk taking is encouraged• within limits• Mistakes are OK if the• organization learns• Decision-making is• collaborative• The performance bar is raised• often• Financial responsibility for unit-• specific systems andoperations• is held in the business unit
ManagmentSystems
PRACTICES
© 1995 Society for Information Management & IBM Corporation 31
Implementing and Enabling the VisionCreatingVision
BusinessLinkages.Create and communicate the ‘v ision’
ManagementSystems.Match capabilities (people, technology and processes) toward meeting the business need
Composite Profile of Seven High PerformanceIS Organizations: Principles and Practices
Organizational Structures
Find the ‘right’ solution - Not in structures but structuring
Organizational Structures
Find the ‘right’ solution - Not in structures but structuring
© 1995 Society for Information Management & IBM Corporation 32
• Experiment: if anorganizational form doesn’t fit then change it• (IRM) Information Resource Management is a strategic competency• Core IS: organize like a• consulting group• Assemble special ‘strike forces’
•- build virtual teams•- change team assignment• AND team composition as• warranted
• Corporate IS center is the• ‘home room’ and the work is• performed in the business units• Enable coaches to provide ongoing career feedback
Organizational
Structures
PRACTICES
© 1995 Society for Information Management & IBM Corporation 33
Implementing and Enabling the VisionCreatingVision
BusinessLinkages.Create and communicate the ‘v ision’
ManagementSystems.Match capabilities (people, technology and processes) toward meeting the business need
Organizat ional Structures.Find the ‘right’ solution - Not in structures but structuring
Composite Profile of Seven High PerformanceIS Organizations: Principles and Practices
Managing Change
Embrace a revised viewof change where stabilityis the exception andchange is the rule
© 1995 Society for Information Management & IBM Corporation 34
ManagingChange
• Driven by threat of outsourcing• Fear lack of critical skills in• emerging technologies• Organizational knowledge seen as• capital asset• Organizational learning is critical and is seen as building competence
PRACTICES
© 1995 Society for Information Management & IBM Corporation 35
Implementing and Enabling the VisionCreatingVision
BusinessLinkages.Create and communicate the ‘v ision’
ManagementSystems.Match capabilities (people, technology and processes) toward meeting the business need
Organizat ional Structures.Find the ‘right’ solution - Not in structures but structuring
ManagingChange.Embrace a revised view of change where stability is the exception and change is the rule
Composite Profile of Seven High PerformanceIS Organizations: Principles and Practices
Human Resources Build organizational competency and
flexibility Create a new employment covenant
promoting accountability - employee: - maintains his own skills portfolio - employer: - defines the requirements - provides opportunities and incentives - gives frequent feedback
© 1995 Society for Information Management & IBM Corporation 36
• Compensation increasingly tied to:• - Business performance• - Team performance• - Individual skill development• The ‘at risk’ part of compensation is• growing• 360 degree review applied to all• employees• Tracking and managing of employee• 'skill sets’• Recognition is little and often• High-profile project assignments are• used for reward/recognition• Move away from Hay Point classes• to competency ‘bands’• Use skill profiles vs. job• descriptions
HumanResources
PRACTICES
© 1995 Society for Information Management & IBM Corporation 37
Implementing and Enabling the VisionCreatingVision
BusinessLinkages.Create and communicate the ‘v ision’
ManagementSystems.Match capabilities (people, technology and processes) toward meeting the business need
Organizat ional Structures.Find the ‘right’ solution - Not in structures but structuring
ManagingChange.Embrace a revised view of change where stability is the exception and change is the rule
Human Resources
.Build organizational competency and flexibility
.Create a new employment contract promoting account- ability where the -employee: -maintains his own skills portfolio -employer: -defines the requirements -provides opportunities and incentives -gives frequent feedback
Composite Profile of Seven High PerformanceIS Organizations: Principles and Practices
People (I/Tprofessionals)
Match employee skills tochanging business needs
© 1995 Society for Information Management & IBM Corporation 38
• Survival = flexibility and ability to change• Must work effectively in the• business arena• Trend toward technical• specialization in• addition to good generalized IT• knowledge• Increased emphasis on ‘soft’ skills• e.g., negotiating skills; the ability• to work in teams; and a tolerance• for ambiguity and uncertainty
People (I/Tprofessionals)
PRACTICES
© 1995 Society for Information Management & IBM Corporation 39
Implementing and Enabling the VisionCreatingVision
BusinessLinkages.Create and communicate the ‘v ision’
ManagementSystems.Match capabilities (people, technology and processes) toward meeting the business need
Organizat ional Structures.Find the ‘right’ solution - Not in structures but structuring
ManagingChange.Embrace a revised view of change where stability is the exception and change is the rule
Human Resources
.Build organizational competency and flexibility
.Create a new employment contract promoting account- ability where the -employee: -maintains his own skills portfolio -employer: -defines the requirements -provides opportunities and incentives -gives frequent feedback
People (I/Tprofessionals).Match employee skills to changing business needs
New TechnologyAdoption
Design collaborative,distributed electronicenvironments
independent of time and space
Composite Profile of Seven High PerformanceIS Organizations: Principles and Practices
© 1995 Society for Information Management & IBM Corporation 40
• Increasingly•- Client server•- Network centric•- Distributed•- Object-oriented
• Building virtual networks and• virtual teams via competency• centers• Technology integrators vs.• builders from scratch• Old technologies and skills: - remain a vital piece of• organization competence - are a launching pad• for discipline in• distributed environments
NewTechnology
Adoption
PRACTICES
© 1995 Society for Information Management & IBM Corporation 41
Implementing and Enabling the Vision
Composite Profile of Seven High PerformanceIS Organizations: Principles and Practices
•
CreatingVision
BusinessLinkages.Create and communicate the ‘v ision’
ManagementSystems.Match capabilities (people, technology and processes) toward meeting the business need
Organizat ional Structures.Find the ‘right’ solution - Not in structures but structuring
ManagingChange.Embrace a revised view of change where stability is the exception and change is the rule
Human Resources
.Build organizational competency and flexibility
.Create a new employment contract promoting account- ability where the -employee: -maintains his own skills portfolio -employer: -defines the requirements -provides opportunities and incentives -gives frequent feedback
People (I/Tprofessionals).Match employee skills to changing business needs
NewTechnologyAdopt ion.Design collaborative, distributed electronic environments independent of time and space
© 1995 Society for Information Management & IBM Corporation 42
Computer Information Systems DepartmentCollege of Business AdministrationAtlanta, Georgia
Produced by:Karen Bauder Hays of the
© 1995 Society for Information Management & IBM Corporation 43
Framework of Seven Cultural Elements
Business Linkages
Vision
Business value
Strategic direction
Relationship to customer
Relationship with business units
IS/Company/ Industry alignment
Management Systems
Leadership models
Decision making
Risk management
Communication strategy
Measurement systems
Financial management systems
Control systems
Learning systems
Structure
Degrees of centralization/ decentralization
Geographic location
Work structures
Networks
Teams
Hierarchies
Alignment with or located in business units
Human Resources
Rewards
Recognition
Skills management
Diversity
Compensation
Measurement systems
Recruitment
Succession planning
Career development
Competencies
Attrition
People
Personal attributes
Work ethic
Team ethic
Technical skills
Business skills
Soft skills
Managing Change
Drivers
Process for change
Sponsorship
Change agents
Attitude
Behavior
Stories, heroes
Values
Status
Technology
Technology architecture
Standards
Platform choices
Absorption rate of new technology
Penetration and pervasiveness of technology
Development environment/ operational environment