Posts Tagged ‘Randy Mott’

CIO Strategy Tips From Randy Mott

Wednesday, May 16th, 2012
Image CreditRandy Mott is a CIO who knows a great deal about strategy

Randy Mott is a CIO who knows a great deal about strategy

You wouldn’t think that a CIO who just got fired from his job at HP would have a lot to teach us about IT strategy, but that’s where you’d be wrong. Randy Mott is a CIO who has been around the block a few times. He’s worked for Wal-Mart, Dell, and he was CIO at HP. When HP’s CEO, Mark Hurd, got fired Randy had to go because he was too close to Mark. However, that all doesn’t mean that we can’t learn a thing or two from how Randy runs an IT department when he’s in charge…

IT Projects Have To Deliver Results

The IT department is a cost center, right? This belief is almost built in to everyone’s definition of information technology. It can’t be expected to actually “make” money can it? It turns out that if you make the effort, you can measure the money that the IT department brings in for the company. Mott believes that for the 12 months after an IT project goes live, the benefits of that project should be measured in both hard dollar and intangibles. How to measure the value of an IT project should be agreed to by the business unit leaders and their finance teams before the project is started so that there is buy-in on the numbers.

Technology moves fast. This means that new technology is always showing up and if the IT department isn’t careful, they’ll be seen as a roadblock that is standing between a new technology and the rest of the company.

IT needs to develop processes that allow it to get new technology out into end users hands as quickly as possible. It doesn’t have to be a company-wide rollout, a trial to evaluate the new technology will do. However, the IT department needs to clearly show that they are out in front of evaluating every new technology.

Finally, I think that all IT departments suffer from the same problem – we seem to try to take on too many tasks all at once. Randy Mott believes that this is a key reason why so many IT projects end up failing. His approach is to have an IT department work on fewer projects, but to have them finish them faster. While Randy was running the IT department at HP they were able to get their average IT project delivery time down to 6 months.

Time Can Be An IT Project’s Greatest Enemy

If you can think back to the last IT project that you worked on, at some point in time you probably wished that you had more time. I know that I have. It’s a good thing that we didn’t work for Mr. Mott. He believes that if you give an IT more time to complete a project, you won’t get any higher quality. He also believes that not delivering an IT project on time hurts IT’s credibility with the rest of the company.

Everyone in the company always wants the IT department to do everything all at once. This means that the CIO often has to make some painful decisions – what areas are going to take priority over the others? Randy took a bold path when it came to this: he moved forward in all areas at once. It was his belief that if he chose one area to focus on, he’d end up not meeting the IT department’s customer’s needs. A great deal of risk is associated with this decision, but if you can pull it off you’ll come away with everyone viewing you as a hero.

What All Of This Means For You

Randy Mott certainly has a great deal of experience at how to do the job of being a modern CIO. He seems to have a bit of difficulty hanging on to his job, but that doesn’t mean that he can’t teach the rest of us in the IT sector a thing or two about how to be a successful CIO.

Randy points out that IT does bring in revenue for the company, we just need to find out how to measure it. He believes that it is IT’s job to deploy new technology as quickly as possible and that this should be done by working on fewer simultaneous projects, but finishing them faster. Finally, Randy does not believe that having more time makes an IT project any better and he thinks that taking too much time to make a decision on what to work on can cost the company time and money.

No, you don’t necessarily have to agree with the way that Randy chooses to see the world. However, due to the importance of information technology I do think that we should all understand why he sees it that way. He’s been on the front line of this CIO thing and so he’s got a pretty good understanding of what the job requires. Give it some thought and then keep your eyes open – Randy might be working at your company next!

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

Question For You: Do you agree with Randy’s view that all IT projects should be worked on simultaneously or do you think that they should be done sequentially?

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What We’ll Be Talking About Next Time

You wouldn’t think that a CIO who just got fired from his job at HP would have a lot to teach us about IT strategy, but that’s where you’d be wrong. Randy Mott is a CIO who has been around the block a few times. He’s worked for Wal-Mart, Dell, and he was CIO at HP. When HP’s CEO, Mark Hurd, got fired Randy had to go because he was too close to Mark. However, that all doesn’t mean that we can’t learn a thing or two from how Randy runs an IT department when he’s in charge…

Video: IT Value How To Measure The Revenue Of IT

Wednesday, April 4th, 2012

We all know that IT provides value to the rest of the company, but how much value? That’s the question that CIOs are always trying to answer.

Dr. Jim Anderson tackles this issue by taking a look at what HP’s former CIO Randy Mott did. It turns out that he found a way to solve this problem. Dr. Anderson explains and shows you how you can use Randy’s technique.

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HP Can’t Pay Its Salespeople – Another CIO Failure?

Monday, September 14th, 2009

HP's Sales People Have Not Been Getting Paid On Time <p> <div xmlns:cc="http://creativecommons.org/ns#" about="http://www.flickr.com/photos/pixieclipx/308927905/"><a rel="cc:attributionURL" href=Being a salesperson is a hard job. More often than not they live from quarter to quarter and if you don’t make your numbers, then you end up getting shown to the door. Hewlett-Packard is a huge IT products and services company that lives and dies by the actions of its sales teams. Making sure that the sales teams get paid should be a simple task right? Think again…

The Problem With Pay At HP

HP’s CIO Randy Mott has a problem on his hands. Within HP, payments for the HP’s business-technology group sales teams are handled by a software application called Omega (which is sorta funny when you think about the fact that Omega is the last letter in the Greek alphabet – it sure doesn’t seem to have the last word on calculating pay).

Omega has been around for a long time. It was born back at Digital Equipment Corporation (anyone remember DEC?), got picked up and used by Compaq Computer Corporation, and then finally found its way into HP. It must either be a well designed program to have had that long of a life or else it’s so dang complex that nobody is willing to tinker with it.

The problem with Omega is that it is struggling to deal with HP’s growing amounts of sales data. It was never originally designed to deal with this much volume. What’s happening is that Omega is now malfunctioning. Some HP salespersons are not getting paid on time – they are ending up waiting up to seven months to get paid!

Fixing The Omega Problem

HP is aware of the problem and they’ve tried unsuccessfully to fix it. As a stopgap measure, HP has been automatically paying its salespeople 60% – 70% of what they should be getting for meeting their sales quotas. One suspects that this is being done in order to allow employees to meet house payments and keep food on the table.

In the past HP has tried to fix Omega by adding new software that was intended to smooth out the flow of sales data. However, back in November of 2008 when HP closed its books for the year, they discovered that some of the data in Omega was both incorrect and incomplete. Clearly the band-aid approach to dealing with the problem had not worked.

What Should HP Do?

The Wall Street Journal is reporting that at a HP sales meeting in 2008, one of HP’s senior vice presidents of sales, Randy Runk, got up on stage and promised the sales teams that they would all be paid on time. Clearly that is not happening.

As CIO, Randy Mott (are all HP senior executives named Randy?) is responsible for fixing this problem – he’s already let it go on for far too long. Let’s say what HP is clearly not willing to say themselves: Omega’s time has come and gone and it must be replaced.

Mott needs to do two things immediately: he needs to campaign to have all HP sales reps who’s compensation is handled by Omega to be automatically paid at the level that they would be if they met their sales quotas. This should continue until the Omega issue is resolved. Any bonus will be calculated and paid with interest once the Omega issue has been resolved. Doing this will calm the sales forces and prevent them from leaving en-mass.

Next, Mott needs to start building a new replacement system for Omega. Why this has not been started already is beyond me. You would think that when HP took a look at the 6,500 that they were using and decided to slim it down to just a mere 1,500 systems, that Omega replacement would have been identified as being a high priority.

Based on the age of the Omega application, I’m willing to bet that its a single monolithic solution. Clearly a modular design is called for. I’m also willing to bet that HP doesn’t have a clear idea of all of the things that Omega does. No problem, if Mott and his IT team sits down with HP’s finance team they can come up with system requirements that may be much simpler than the twisted requirements that Omega now implements.

Final Thoughts

Randy Mott has been doing some amazing things at HP. However, somehow the way that he’s been prioritizing what his IT teams need to be working on skipped over the Omega problem. Clearly the prioritization of IT projects needs to be re-looked at.

Mott needs to take immediate steps to resolve the problems that this IT issue has created and then he needs to fix the problem once and for all by creating a replacement solution for the out-of-date and overworked Omega system. If he can do this quickly, then he will have found a way to apply IT to enable the rest of the company to grow quicker, move faster, and do more.

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What We’ll Be Talking About Next Time

Innovation, innovation, innovation – everyone wants it, but nobody seems know know how to get and keep it. CIOs are under a lot of pressure to do more with less these days and being able to nurture an environment of innovation sure would help. The trick is HOW to do this…

IT Value: How To Measure The Revenue Of IT

Wednesday, June 10th, 2009

IT Departments Produce Revenue, But You Have To Be Careful How You Measure It

IT Departments Produce Revenue, But You Have To Be Careful How You Measure It

What would you say is the biggest challenge that CIOs are facing today? There are a lot of possibilities to choose from, but if I had to put my money on just one issue, I’d choose the fact that all that today’s CIOs seem to get a chance to talk about is costs.

What’s missing here is a way for CIOs to communicate in a company-wide manner just how much value the investments that the company is making in IT are returning – the revenue of IT if you will. HP’s CIO Randy Mott has been facing this problem and he’s come up with a solution to it.

Chris Murphy over at InformationWeek had a chance to sit down with Randy and ask some questions about how he’s gone about communicating the value of IT in his company.

At HP, the IT teams attempt to put a measurable value on the work that they do. In short, it’s the sum of the tangible (hard dollar) and intangible benefits that each IT project delivers in the 12 months just after full implementation is complete.

Randy believes that IT has always produced a revenue; however, we’ve been doing a poor job of capturing the value of what we do. The correct way is to report on the value of an IT project  in such a way that it can be presented to the CFO / CEO / executive committee and have the numbers stand up.

How did HP pull this off? Simple – pre-planning. Before any project starts at HP, a complete cost-benefit analysis is performed and agreed to by both business unit leaders and finance. This means that the numbers are finance numbers – not IT numbers – and so they have credibility with the rest of the business.

So there you go – it is possible to measure the “revenue of IT”. It just takes commitment from both inside and outside of the IT department.

Questions For You

Is your IT department just a cost center? Does your IT department try to measure the revenue that they enable? Are the numbers that they report accepted by the rest of the company? Leave me a comment and let me know what you are thinking.

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         The Accidental Successful CIO Blog is updated.

Coming Up Next Time

The world at large believes that CIOs lack the business skills that are needed in order to have a seat at a company’s strategy steering table. If CIOs are to take the reins of the IT department and turn it into the engine that allows the rest of the company to move faster, then there are 5 things that they need to STOP doing…

Can HP Survive? Do They Have The Secret CIO “Juice”?

Monday, June 8th, 2009
Mark Hurd Has Done Wonders At HP - Now Can He Find Enough Innovation?

Mark Hurd Has Done Wonders At HP - Now Can He Find Enough Innovation?

HP’s CIO Randy Mott has done some fantastic things in helping to turn the company around. However, now things are starting to get tricky and it’s not clear that the company is going to be able to continue to be successful. Everyone seems to think that what they need is a shot of that “innovation juice” and it’s not clear that Randy’s going to be able to deliver it…

What HP Did Right

Ok, so let’s admit it – HP had lost their way under Carly Fiorina’s guidance. They brought in Mark Hurd as CEO (who then brought in Randy Mott as CIO) to turn things around. Hat’s off to Mark – he’s done a great job.

Ashlee Vance over at the New York Times had a chance to talk with Hurd awhile back and he revealed that he sees HP in terms of four “quadrants“. These quadrants include operations, products, business & technology trends, and competitors.

Clearly Hurd has an analytical outlook on life – many people have remarked on just how good he is with balance sheets and dealing with numbers in general. It turns out that this is both good and bad.

The Problem That HP Has Now

HP has done a fantastic job of cutting staff, reducing costs, and negotiating great deals on parts. Having achieved just about all of the benefits that one can get from doing these types of actions, the question that comes up is “what next?”.

Shareholders like growth and in the immediate past, HP’s been growing by cutting. Now that that’s all done, how will it maintain its growth? This is where that pesky thing called innovation comes in…

Old Solutions Won’t Work!

HP used to be able to count on the famous HP labs to come up with new product ideas that would show them the way forward. However, in the current era of budget cutting and project justifications, HP has shrunk the number of projects that their labs are working on from 130 down to about 50. That may not be enough to have enough of those “eureka” moments where breakthroughs happen.

Next Steps For HP

The trick here is to find a way to recapture that “juice” that a technology company like HP needs to have in order to survive. This is exactly where CIO Randy Mott should step in.

As CIO of HP, Randy is in a unique position to help Hurd out. Since HP sells information technology products and services, their very own CIO is the person who can help them evaluate which ideas they need to run with.

Yes, yes – both Hurd and Mott like to run a tight ship with metrics ruling the day. I believe that that time has come and (partially) gone. Now is the time for Mott to throw open the doors to his IT department and start up some trial projects and initiatives. HP is so large that they could easily run multiple evaluations in parallel.

Final Thoughts

HP has made a remarkable comeback from the brink of despair. However, as they try to move forward, innovation and clever sparks of imagination are what’s going to be needed. HP’s CIO Randy Mott has the resources and the talent in his shop that would allow HP to use itself as a testing ground for encouraging its employees to make suggestions and have them tried out. Let’s see if they make the most of this opportunity…

Questions For You

Has your IT department lost its spark of creativity due to relentless efforts to drive costs out of your organization? Do you think that just having a highly efficient organization is all that is needed or does innovation also play a role? What do you think HP could do in order to re-awaken its innovation engine? Leave me a comment and let me know what you are thinking.

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The Accidental Successful CIO Blog is updated.

Coming Up Next Time

What would you say is the biggest challenge that CIOs are facing today? All that today’s CIOs seem to get a chance to talk about is costs. What’s missing here is a way for CIOs to communicate in a company-wide manner just how much value the investments that the company is making in IT are returning – the revenue of IT if you will…