Posts Tagged ‘knowledge’

4 Ways That CIOs Can Start To Make Better Decisions

Wednesday, May 11th, 2011
Image Credit CIOs Need A Tool To Help Them Make Better Decisions

CIOs Need A Tool To Help Them Make Better Decisions

An important part of the job of being a CIO is the ability to make good decisions. Lots of good decisions. In fact, the ability to make more good decisions than bad decisions is arguably what allows a CIO to keep his / her job. Now the only problem is that it’s really, really hard to make good decisions all the time. To help you do a better job of this, I’m going to share with you four decision making tools that will help you every time you have to make a decision.

A New Way Of Making Decisions

CIOs need a new way to make correct decisions. Our ultimate goal should be to find ways to make the right decision more often than not. One way to do this is to adopt the “evidence based decision making” approach. This form of decision making rejects using gut feels and relying on past limited personal experience and instead is based on evidence and logic.

The problem that most CIOs run into when they try to apply evidence based decision making to their organizations is that it runs counter to the way that things are currently done. Every company has its share of stories about gutsy managers who just knew what the right thing to do was, and did it. What we forget are the stories about the managers who thought that they knew what to do and ended up doing the wrong thing.

Ask For Evidence

CIOs are always being presented with requests for something. More often than not it is for funding, but it can also be for resources or even simply for permission to proceed. You need to take a careful look at each of these requests.

When a CIO is using the evidence-based approach to making decisions, he or she needs to ask the people who are making the request for evidence. They are proposing doing something, they need to be able to prove to you that by taking the action that they want to take, good things will happen. If they can’t prove it, then you need to reject their request.

Look At Logic

When plans are presented to a CIO, they are often backed up with the results of surveys, charts and graphs of data, and lots of other impressive looking results. When presented with this type of information, CIOs need to be on the alert.

All too often in our very busy lives we tend to accept what is presented to us at face value. What we really need to be doing is taking a step back and looking more closely at the underlying data.

The question that you need to be asking yourself is if the results that have been drawn from the data really make sense. Are there any gaps or leaps in logic that really just don’t hold up? You’ll be amazed at how often you’ll find things that don’t support the conclusions that have been reached. When this happens, you need to send the team making the request back to the drawing board.

Experiment & Reward

Not every project is going to succeed. In fact, in the world of IT some projects fail in a spectacular fashion. Things really don’t have to be this way. If CIOs could become better decision-makers then a lot of this could be avoided.

One way to avoid big IT project failures is to encourage small IT project failures. That’s not as bad as it may sound. CIOs need to create an environment in which employees are encouraged to start pilot projects and to try out new ideas using trials before the CIO has to commit to a much larger project.

Many of these smaller projects will fail. This is a good thing – far better to have a small project fail and learn from it than have a much larger project fail and learn nothing. CIOs need to reward IT staff that work on projects that fail – everyone needs to see that there is much to be learned from each project no matter how it turns out.

Find Wisdom

Perhaps the simplest way for CIOs to make better decisions more of the time is for them to have one simple realization. If a CIO can understand that they don’t know it all, that there is still a lot that they need to learn, then they’ll be able to make better decisions.

Far too often CIOs assume that they know everything that they need to know in order to make the right decision. However, the reality is much different – there is no way that they know what they don’t know. Admitting that you don’t know it all is the first step in being open to collecting more information and becoming a CIO who makes better decisions.

What All Of This Means For You

All too often CIOs lose their job because they made bad decisions. It turns out that a big part of being the CIO is the ability to make a lot of good decisions. What is needed are tools that will help a CIO to do a better job of making the correct decision.

Four such tools exist and can be used by CIOs. The first is to demand evidence when a proposal is made. The next is to test the logic behind any proposal that is made. To ensure that the IT department can support the CIO in making good decisions, the CIO needs to allow trial programs to be run. These trials need to be allowed to fail and IT employees have to be rewarded for uncovering information before a bigger investment was made. Finally, CIOs need to teach their staff that they don’t know everything and everyone must respect the fact that there is much more for them to learn.

Although CIOs deal with technology, much of the their day-to-day job has to do with teaching. In order to make better decisions, they need to take the time to teach their IT department how to look at opportunities and how to use the information that is available to make the best decisions each and every time.

- Dr. Jim Anderson
Blue Elephant Consulting –
Your Source For Real World IT Department Leadership Skills™

Question For You: How do you think that a CIO should react to an IT trial program that failed?

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What We’ll Be Talking About Next Time

When you are CIO you will quickly come to dread (or maybe you already do) the annual strategic planning process for the IT department. Talk about choices: mobile devices, privacy issues, cloud computing – who can pack strategic planning for all of these issues into one short period at the beginning of the year – there’s got to be a better way

Faux Market Secrets: How CIOs Capture Innovation

Monday, July 13th, 2009
CIOs Can Use Faux Markets To Identify Innovative Ideas

CIOs Can Use Faux Markets To Identify Innovative Ideas

So picture this: you’re a CIO and you desperately want to be seen by the rest of the C-level executives as something more than a simple cost center. What to do? If only there was some way that you could tap into all of that incredible creative energy that we all know lives in the IT department.

If you could harness that energy and apply it to innovative projects, you’d be a company hero. Guess what? The power of Faux Markets is exactly what you need to do this…

What Is A Faux Market?

You know that things are getting fancy when we start using French words! A Faux Market is simply a term that refers to using simulated market forces to make a decision. Perhaps an example would show what I mean. A good case study would be GE Research.

Back in 2005 GE Research had a problem. They had too many product ideas that had been submitted and only $50,000 to spend on investigating them. Clearly they need to make some hard decisions as to which ones they would persure.

The way they picked which projects to work on was by using a faux market. They had their 85 employees spend three weeks buying and selling any one of 62 proposed projects. At the end of the three weeks, GE ended up with a  prioritized list of the top projects that its employees thought had the most value. The project that won was an machine intelligence algorithm that a researcher had proposed but which had not yet traveled through the normal management bureaucracy.

Why Use Faux Markets?

All too often IT departments have a bewildering array of possible projects, technologies, or directions that the department can choose. Sometimes senior management will huddle and make a decision, sometimes no decision gets made. Faux markets offer an alternative.

A faux market tool allows a firm to quickly sort though large numbers of projects or proposals in order to attempt find those that will provide the most bang for the buck. Firms believe that this approach offers them the best chance of finding the next blockbuster product or solution.

Not A Silver Bullet

Faux markets can be a big help; however, as with everything else they do have their drawbacks. One such drawback is the that the voting process does not provide much insight - there may be no penalty for backing a bad idea. Just because a proposal is popular does not necessarily guarantee commercial success.

Final Thoughts

Using faux market tools to quickly sort though a large stack of ideas can provide IT departments with a way to identify innovative ideas no matter where they come from. However, a group vote alone isn’t enough in most cases.

A two step process where voting is initially used to narrow a large list down into a more manageable list of less than 100 candidates is a good first step. The next step can be to use a prediction market allow employees to buy and sell the candidates in order to see which ones go up in value. This will reveal the true winning ideas and you will have found a way to apply IT to enable the rest of the company to grow quicker, move faster, and do more.

Questions For You

How do you process new idea suggestions today? Do you have employees vote on things in order to sort them out? Are these just popularity contests or do they take market factors into consideration? Do you think that faux markets could help you capture more innovative ideas? Leave me a comment and let me know what you are thinking.

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What We’ll Be Talking About Next Time

As a CIO, you’ve got some challenges facing you. You’re managing a diverse and potentially distributed work force of highly skilled and talented IT professionals. You need to find a way to keep them challenged, and yet at the same time enable them to find ways to work together. Have you considered Alternate Reality Games?

First-Mover Advantage: Complex-Event Processing Is What CIOs Need

Monday, June 22nd, 2009
CIOs Need To Get To Know Complex-Event Processing

CIOs Need To Get To Know Complex-Event Processing

The job of  a CIO and the IT department is to equip the rest of the company to move faster and do more. One of the ways that a CIO can do this is by staying on top of new and emerging technologies (ex. unified communications).

If such technologies can be implemented in a useful way BEFORE the company’s competitors can do the same, then the CIO will have done his/her job. Complex-Event Processing looks like it may be another one of those technologies.

What Is “Complex-Event Processing”?

In business, knowledge is power and power is profit. Every business has multiple streams of information flowing into it at all times. Information on sales, inventory, returns, web site clicks, weather conditions, bank balances, etc.

For years firms have been processing these information streams individually and in near-real-time. These are the core business applications that produce the reports that get sent to senior management each night for them to review the next day. This is better than nothing, but it’s not quite enough.

Neal Leavitt writing in the IEEE’s Computer magazine points out that today’s traditional databases are not up to the task of analyzing continuous streams of business data in real-time searching for complex events (events that require more than one data stream to detect).

What is now arriving on the IT scene are general-purpose platforms that provide an IT department with enough processing horsepower to analyze real-time business information simultaneously across multiple business applications.

What’s It Good For?

Complex-event processing gives a firm the ability to spot interconnected business trends and patterns in real-time and then combine this information into complex events that can trigger alerts that can be sent to people in the company.

Complex events can include such things as determining when to trade stocks, detecting fraud as it is happening, spotting inventory issues before they become a problem, network status monitoring, etc.

Are There Any Risks?

Of course – this is cutting edge technology, there are always risks with this stuff. The current limitations to this type of technology include:

  • Lack Of Standards: specifically for the event-pattern detection and rule-based languages for different vendor’s products.
  • Education: this is new technology and businesses don’t fully understand what the products can do nor all of the situations in which they can be applied.
  • Missing Benchmarks: No standardized benchmarks currently exist so it’s difficult to compare products.

Final Thoughts

Every great business break-through starts with a dream. What could your firm do if you could analyze all of your business data streams in real-time? If the benefit is compelling enough, then perhaps it’s time to start looking into how you could apply complex-event processing to as a way to apply IT to enable the rest of the company to grow quicker, move faster, and do more.

Additional Resources

If you’re interested, here are links to several vendors who have products in the complex-event processing. I have no relationship with any of them so there is no order to the list:

Questions For You

Does your firm have multiple streams of real time data flowing into it? What do you do with these streams today?  What kind of delay is there from when the data arrives to when staff can take action on it? What could you do with the ability to analyze this data in real-time? Leave me a comment and let me know what you are thinking.

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The Accidental Successful CIO Blog is updated.

What We’ll Be Talking About Next Time

If you could be running the IT department for any company out there right now, which one would it be? A lot of us would say Google – everything that we’ve read and heard about the company makes it seem like a great place to work. However, it turns out that even Google is not immune to IT staff problems…

Why Don’t IT Alliances Work Out?

Monday, April 20th, 2009

IT Department Alliances Can Make Everyone Stronger - If They Are Done Correctly

IT Department Alliances Can Make Everyone Stronger - If They Are Done Correctly

You would think that the more alliances that your company / IT department makes with other firms, then the better that they would become at making them. After all, practice makes perfect – doesn’t it? It turns out that this is not always the case.

Koen Heimeriks has spent time studying 200 firms that had formed more than 3,400 alliances. What he has found just might surprise you.

He found that those firms that had the most experience striking up alliances actually had worse results when compared to those firms who had moderate experience.

Why the difference? It turns out that there are two problems that develop in firms that already have  a number of alliances:

  1. they have a tendency to become overconfident in their alliance building skills, and
  2. they can develop learnings about alliances that are in actuality based on unsupported ideas about cause and effect.

So what can make an IT department’s alliance with another firm actually work out well? It turns out that it’s the methods and procedures that the firm uses to create alliances that will determine their eventual success. Established firms that already have many alliances will probably have rigid and inflexible business processes for making decisions and selecting partners.

However, IT departments with fewer existing alliances will have more flexibility built into their processes. An example of this would be where employees who have worked on previous alliances share information with the employees who are trying to create a new alliance. This type of discussion can lead to experimentation and allows novel approaches to each alliance opportunity.

So in the end, what does all of this lead to? Heimeriks reports that the larger firms who had many alliances and a more rigid alliance creation process had an alliance success rate of around 50%. Those firms that had fewer alliances and a more flexible alliance creation process had an alliance success rate of around 71%. Sure looks like flexible processes are the key to successful IT alliances!

Does your IT department have any alliances with outside firms? Would you say that you have a lot or a few of these alliances? Are they generally successful or not so successful? Do you feel that your alliance creation processes are fixed or flexible? Leave me a comment and let me know what you are thinking.