By Laton McCartney
Today just about every technology consultant, research firm and IT pundit is coming out with ideas that can enable CIOs to help stay off the effects of the current economic crisis without necessary slashing staff to the bare bone. Some of these ideas are pretty good, and frankly others are impractical and even counter-productive. Let’s review.
1. Use web conferencing
Ok, you eliminate plane fares, hotel rooms, effectively enable collaboration within virtual teams, share files and shorten development cycles. Web conferencing can even reduce an organization’s carbon footprint. This is a no-brainer. In fact, I’d put any organization that isn’t already using web or video conferencing in lieu of traditional meetings on the endangered list.
2. Get a black belt in Lean Six Sigma
The idea here is that a CIO with a Six Sigma black belt and the requisite IT skills to match can implement quality management and statistical methods that can mean the difference between survival and failure in the current down economy. Problem is that it takes months – Villanova, for instance, has a two month course -- to master the rudiments of Six Sigma, longer to get a black belt.. In this environment who’s got time?
3. Use Shared IT Services
Here’s how HP, a big proponent of shared IT Services, describes this approach: “With IT Shared Services, common distributed IT functions are consolidated and delivered over a shared infrastructure to achieve critical mass and service the enterprise with lower costs, higher service levels and greater responsiveness. An IT Shared Service Center is established as a distinct organization to provide a set of shared services to select business groups via a customer/supplier model. Service is defined by the needs of internal customers and delivered based on a market standard of excellence.”
Got that? You leverage your internal technology resources. Makes sense, especially these days, but also give rise to a couple of questions. How much does all this cost? Do you have to add staff to man the center and bring in new technology as well? Also, by some accounts it may take a year or so to implement a shared service program. Not a quick fix.
4. Get some leeway from your vendors
In good times you may well spend millions of dollars on technology services and products. And what do you get in return when the economic pendulum swings the other way? In some instances, you may even get a free pass. Boston Consulting Group, as an example, is acting as management advisors for Satyam Consulting at no charge in an effort to shore up the troubled Indian outsourcer. Talk to your vendors about maybe trimming or deferring recurring costs for software license fees, maintenance, and support services; replacing PCs for less than $500 a pop and getting more bandwidth for the same money. Make sure you’ve got a handle on every single line item in the IT budget first, however, so you know where the cuts will do the most good. If you’ve got clout with your suppliers, there’s no better time to use it.
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