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BT-450 A IT ORGANIZATION

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Title: BT-450 A IT ORGANIZATION


1
BT-450 A IT ORGANIZATION HR Instructor
Rajeev Dwivedirdwivedi_at_stevens.eduPhone
201-216-8508Desk-7A, Library Admin (3rd Floor)
Library BuildingStevens Institute of
Technology, NJ-07030
Venue Kidde Complex 380 Time 0615-0845PM
(Tuesday)
2
- ORGANIZATIONAL CHOICES- HR/SKILLS
CONSIDERATIONS - MANAGING CHANGE- GLOBAL
IMPLICATIONS
3
ORGANIZATIONAL CHOICES
  • NOTE
  • ORGANIZATION CHOICES FOCUSES ON REPORTING
  • IT GOVERNANCE FOCUSES ON DECISIONS

4
  • Organization Types
  • Central/Decentral
  • Geographic
  • Skill/Function
  • Adhocracy
  • Federated/Hybrid
  • Asymmetrical
  • Networked

Are all organizations hierarchical?
5
TYPICAL FUNCTIONAL SILOS
BUSINESS PROCESSES
Finance and accounting
Sales and marketing
Technical
Logistics
Manufacturing
Purchasing
Customer Relationship Management
Account management
Requirements definition
Manufacturing strategy
Sourcing strategy
Customer profitability
Requirements definition
Customer service management
Account administration
Technical service
Performance specifications
Coordinated execution
Priority assessment
Cost to serve
Demand management
Demand planning
Process requirements
Network planning
Capability planning
Sourcing
Trade-off analysis
Special orders
Environmental requirements
Distribution management
Plant direct
Selected supplier(s)
Distribution cost
Fulfillment
Packaging specifications
Process stability
Prioritization criteria
Production planning
Integrated supply
Manufacturing cost
Manufacturing flow management
Supply Chain Management
Order booking
Material specifications
Inbound flow
Integrated planning
Supplier management
Materials cost
Product development and commercialization
Business plan
Product design
Movement requirements
Process specifications
Material specifications
Research and development cost
CUSTOMERS
SUPPLIERS
6
SHOULD U.S. GOVERNMENT AGENCIES BE ORGANIZED
DIFFERENTLY TO BETTER INTEGRATE/SHARE
INFORMATION???
WHAT ABOUT INTEGRATING OUTSIDE OF THE U.S.?
7
The roles of managers and subordinates in the
different types of organizations
Network Organization
Hierarchical Organization
Flattened Organization
Use of authority by the manager
Area of freedom for subordinates
Manager allows situational leadership to occur
based upon which node of the network is best
equipped to solve problem
Manager makes decisions and announces or sells
it
Manager presents ideas and invites questions
Manager presents tentative decision subject to
change.
Manager presents problem, gets suggestions, makes
decision.
Manager defines limits asks group to make
decision
Manager permits subordinates to function within
limits defined by superior
1
2
3
4
5
6
7
Multiple networks exist in organizations.
8
Classical versus Networked Organization
  • EXAMPLES
  • COC/COE SWAT
  • SKUNKWORKS LINUX
  • El QAEDA GENOME PROJ.

9
  • Traditional IT Functional Organization

CONSULTING DEVELOPMENT SERVICE
PLAN IMPLEMENT
DELIVER
10
  • Functional Organization

CONSULTING DEVELOPMENT SERVICE
  • Strategic Planning
  • Development Planning
  • Service Planning
  • Resource Planning
  • Control
  • Management System
  • Monitoring Planning
  • Service Marketing
  • Vendor Planning Mgt
  • Development Maintenance
  • Systems Programming
  • Technology Planning
  • Development Planning Support
  • Development Control
  • Information Services
  • Service Control
  • Resource Control
  • Systems Maintenance
  • Tuning Systems Balancing

11
  • Functional Organization Consulting

12

  • Functional Organization Development 1 of 3
  • Project Mgmt. Responsibility
  • Analysts
  • Programming
  • Functional Enhancements
  • Systems Design
  • Sysgens
  • Data Base Administrator
  • Technology Scanning
  • Productivity Aids
  • Development Standards
  • Development Center?
  • Project Control
  • Assignment
  • Scheduling
  • Administration
  • Control
  • Requirements
  • Evaluation
  • Project Plan Consolidation

13
  • Systems Development Organized by Skills 2 of 3

14


  • Systems Development Organized by Type of System 3
    of 3

Benefits? Horizontal/Vertical? Central/Decentral?
15
  • Functional Organization Service

16
  • Centralized IT (Shared Resources) Organization
    Model

Business Functional Management
Chief Information Officer
DEVELOPMENT Company-wide Deployment
STRATEGY Company-wide Strategy
OPERATIONS Company-wide Infrastructure
User Management
Systems Design
IT Human Resources
Customer Service
Liaisons, Relationship Managers
Development Maintenance
Desktop Mobile
IT Planning
Data, N/W, Systems Mgt
Technology Research
Data, N/W, Syst, Apps
Operations
Company-wide Management
Finance Administration
Quality Management
Co-wide IT Quality Program
17
  • Decentralized IT Product Line of Function IT
    Organization Model

Business Functional Management
Chief Information Officer
Dedicated IT
Corp. Co-wide Operations
Company-wide Strategy
Corp. Co-wide Development
Dedicated IT Manager
IT Human Resources
Customer Service
Systems Design
Dedicated Infrastructure
Desktop Mobile
Development Maintenance
IT Planning
Data Management
Technology Research
Data, N/W, Syst, Apps
Operations
Finance Administration
Corp. Co-wide Management
Co-wide IT Quality Program
Quality Management
18
  • Functional Business Unit Structure

Vertical, Horizontal? Central, Decentral?
Marketing
Finance
Manufactur- ing
Distribution
Human Resources
What IT responsibilities reside where?
19
  • Divisional Structure

Vertical, Horizontal? Central, Decentral?
Each Division has Marketing, Finance,
Manufacturing, Distribution and Human Resources
What IT responsibilities reside where?
20

  • Strategic Business Unit Structure

GROUP A
Vertical, Horizontal? Central, Decentral?
Each Group may have Marketing, Finance, Human
Resources and IT
Each Division has Marketing, Finance,
Manufacturing, Distribution, Human Resources and
IT
What IT responsibilities reside where?
21
  • Emerging Ad-Hocracy Process-Oriented IT
    Organization

Operating Management
Chief Information Officer
Finance Administration
Process Management
IT Program Managers
User Management
Quality Improvement Programs
Technology Research
IT Planning
Resource Management
Applications Portfolio Management
PROxxxTeams
IT Human Resources
Development Maintenance
Systems Design
Shared Resources Support COEs/COCs
Data Apps Management
Desktop Mobile
Customer Service
Operation
Syst N/W
Mintzberg
22
VIRTUAL ORGANIZATION ORTHE EXTENDED ENTERPRISE
ORCONFEDERATION ORSYNDICATE
23
Fitting IT Structure to Business Needs
24
HORIZONTAL OR VERTICAL???
UNIT A
UNIT B
UNIT C
UNIT D
UNIT E
Sales
Sales
Sales
Sales
Sales
Marketing
Marketing
Marketing
Marketing
Marketing
Customer Service
Customer Service
Customer Service
Operations (includes sourcing, tolling,
logistics, scheduling)
Operations
RD, Engineering
Research and Development, Engineering
Shared Services (finance, IT, legal, public
affairs, environment)
25
  • Federal (Federated) Model

26
  • FEDERATED IT

Excessive to group Variable Standards of IT
Competence Reinvention of Wheels No
Synergy Integration
Decentralized IT
27
Federated Data Warehouse State Farm Insurance
  • A Combination of warehouses (e.g. Auto, Home,
    Life, Finance) where data is linked through
    common keys to provide a superset of enterprise
    data.
  • Leverages the best of the architectures by
    expanding on strengths and mitigating weakness of
    prior warehousing efforts.
  • Offers more functionality to business partners
    by providing a complete, integrated look of
    financial and non-financial data.

28
Evolving ASYMMETRICAL Organizational Structure
29
  • How would you describe
  • your IT organization

Decentralized
11
Federated
23
Centralized
66
Source Forrester Research Inc., 2004
30
IT Organization
Luftman SIM
31
  • Shifts of emphasis are shaping the organization
    of the future
  • From fat to lean the new staffing principle.
  • From vertical to horizontal the new
    organization.
  • From homogeneity to diversity the new workforce.
  • From status and command rights to expertise and
    relationships the new power source.
  • From company to project, product, process the
    new loyalty.
  • From organizational capital to reputation
    capital the career asset.

32
  • During Restructuring
  • Provide a context for the restructuring by
    building a clear, externally driven case to
    support the need for urgent change.
  • Create a vivid picture of the future.
  • Communicate the new structure and the way it will
    actually work.
  • Manage the transition tightly.
  • Give the new design time to work.

33
Three basic types of working relationships that
will produce a positive cultural environment
after a merger or acquisition agreement is
reached
34
High-Performing Mergers Consistently Applied Four
Disciplines
  1. Strategic Fit
  2. Due Diligence
  3. Business Synergies
  4. Management Capabilities

35
ACQUISITIONS OFTEN FAIL
  • Share-holders of the acquired firms often earn
    above-average returns from the acquisitions but
    that shareholders of the acquiring firms earn
    returns, on average, close to zero (Michael
    Jensen)
  • Approximately 60 percent of the acquisitions
    examined failed to earn returns greater than the
    annual cost of capital required to finance the
    acquisitions( McKinsey)
  • 23 percent of acquisitions were successful
    (McKinsey)
  • 30-45 percent of acquisitions are later sold and
    often at prices producing a loss on the
    investment (multiple studies)
  • Common for low performing acquired businesses to
    be spun off into independent companies (e.g., the
    NCR spin-off by ATT)
  • Stock values of the 15 largest acquisitions for
    1995 through 1999 averaged 9 percent below the
    SP 500 (CommScan LLC)
  • Do you think that economies of scale are
    achieved?

There are risks involved in mergers and
acquisitions
36
COMPANY MERGER IT ACTIONS
  • Develop a philosophy up front. It will keep you
    focused
  • Let internal staff and outsourcers know where
    they stand early on.
  • Use the opportunity to identify low-priority
    systems that should be
  • removed (and get rid of them).
  • Save implementation time by getting the whole IT
    community aligned
  • on critical systems decisions.
  • Communicate, communicate, communicate.
  • Articulate roles, responsibilities and service
    levels clearly.
  • Think strategically.Try to pick the system that
    best supports the
  • direction of the new company.
  • Get ahead of the wave.Merging companies should
    pick a CIO well
  • before the merger is completed and let him
    start planning the transition.

37
HR/SKILLS CONSIDERATIONS
38
2005 Top 10 IT Management Concerns
1. IT And Business Alignment
2. Security And Privacy
3. Attracting, Developing Retaining IT
Professionals
4. IT Strategic Planning
5. Introducing Rapid Business Solutions
6. Business Process Reengineering
7. True Return on IT Investment
8. Measuring The Value of IT Investment
9. IT Governance
9. Speed And Agility
New to top 10
9. Complexity Reduction
Luftman SIM
39
Top human-capital management application
initiatives
HR management
Recruiting
Employee-performance management
E-learning
Employee portals or self-service
Workforce analytics
Enterprise-incentive management
Contingent workforce or services procurement
None
10
20
30
40
50
60
of respondents
Data AMR Research survey of 100 HR executives
40
Managers Misunderstand What Workers Value
Highest
Good wages
Job security
Managers overemphasize
Promotion/ Growth
Good working conditions
Interesting work
Personal loyalty
Supervisor Ranking of Importance to Employees
Tactful discipline
Managers underemphasize
Appreciation
Help with problems
Feeling in on things
Lowest
Highest
Employee Ranking of Importance
Misaligned!!!
Ref Warren Bennis, HBS.
41
Desired vs. Actual HR Practices of IS
Organizations
Source Gartner Group
42
SHARE OF IT BUDGET FOR SALARIES BENEFITS
Source InformationWeek
43
2004 IT Workforce Job Categories as a Percentage
of Total IT Workforce (1 of 3)
Technical Writing 5
Digital Media 7
Network Systems 7
Programming 20
Web Development 9
Technical Support 19
Database 10
Other 12
Enterprise Systems 11
Source ITAA Adding ValueGrowing
Careers Annual Workforce Development Survey. 2004
44
Computer software engineers lead in employmentas
a percentage of IT workers 2 of 3
Total IT workers 3.4 million
Data Bureau of Labor Statistics
45
How IT staff time breaks down for 100 companies 3
of 3
8 Planning decision support
3 Standards/tools development admin.
2 Supplier Management
25 Application S/W development
4 Risk Management
8 End-user support training
25 Operations
6 Infrastructure development
16 Application S/W maintenance
3 Project cost accounting
Source The Hackett Group
46
Where The Losses Were
2000
2004
-24
-21
7
-10
-1
54
32
89
Jobs (in thousands)
Data Bureau of Labor Statistics data
47
Do you believe that a career path in IT and the
potential for salary advancement is as promising
today as it was five years ago?
MANAGEMENT
STAFF
25 AS PROMISING
18 AS PROMISING
5 UNSURE
8 UNSURE
74 NOT AS PROMISING
70 NOT AS PROMISING
Data InformationWeek Research Base 7,748 staff
and 6,820 managers
48
Commerce Department
49
Commerce Department
50
Commerce Department
51
(No Transcript)
52
HIRING IS THE BROADEST IN FOUR YEARS
PERCENT
70 60 50 40 30 0
JAN.01 APR.04
Ref Labor Dept., Global Insight Inc.
53
IT unemployment approaches low of 2001
6
5
4
of IT workers unemployed
3
2
1
05
04
03
02
01
Note Annualized second-quarter unemployment rates
Date Bureau of Labor Statistics
54
What is your near term IT staff hiring picture?
46
34
14
6
0
Source Merrill Lynch
55
2005 IT Head Count In Comparison to 2004 (Actual)
Luftman SIM
56
Percent of New Hires for 2005 (Actual)
Luftman SIM
57
2006 IT Head Count In Comparison to 2005
(Projected)
Luftman SIM
58
Percent of New Hires for 2006 (Projected)
Luftman SIM
59
Climbing Back
20
U.S. growth rates
15
IT Industry
10
5
GDP
0
- 5
projected
2005
1990
1995
2000
Nominal
Fortune Sources IDC, Govt. Statistics
60
Projections for Professional-Level IT Occupations
Continued Rapid Growth Projected 2.5 Million New
IT Workers Needed Between 2000 and 2010
6,000
5,000
2,155
4,000
331
3,000
2,000
3,277
2,946
1,000
0
2010
2000
New Jobs Net Replacement
2000 Base Year Employment
Ref U.S. Department of Commerce, Office of
Technology Policy analysis of U.S. Department of
Labor, Bureau of Labor Statistics Occupational
Employment Projections, 2000-2010
61
Projected New Jobs
By Occupational Category 2012
Computer Professionals 11
Source Employment Policy Foundation analysis and
projections Census/BLS and BEA data
Walk Associates, Inc.
62
20 Fastest-Growing Professional Jobs

Environmental engineers Network systems and
datacom analysts Personal financial
advisors Database administrators Software
engineers Emergency management
specialists Biomedical engineers PR
specialists Computer and info systems
managers Compensation, benefits, and job
analysts System analysts Network and systems
administrators Training and development
specialists Medical scientists Marketing and
sales managers Computer specialists Media and
communication specialists Counselors, social
workers Lawyers Pharmacists
54.3
41.9
36.3
33.1
27.8
27.8
27.8
27.8
25.6
25.6
24.9
24.9
22.3
22.1
21.3
20.8
IT Financial Health Other
20.6
20.6
20.4
20.2
Ref Bureau of Labor Statistics
63
These IT skills are projected to be the most in
demand this year 1 of 2
Application development
E-commerce Internet
Java
Networking
Security
2
4
6
8
10
12
of respondents that say these skills are needed
Ref Meta Group of survey of 650 companies
64
N556
In which of the following IT functions does your
company expect to increase hiring during the
coming 12 months (please select all that apply) 2
of 2?
same number of IT
more IT employees in 2 years
fewer IT employees in 2 years
(top 9 only)
total
employees in 2 years
Applications development
49
60
32
31
Project management
37
43
31
27
Help desk / tech support
35
46
14
19
Data center / operation / maintenance
27
36
14
14
Business-IT liaison / account manager
25
31
18
16
Compliance / regulatory
22
24
19
19
Planning / architecture
22
26
19
14
End-user training / education
19
22
13
13
18
IT governance
20
14
14
CIO INSIGHT
65
BASE SALARY TRENDS, 1999-2005
130K
120K
117K
Mgt. 75th percentile
115K
110K
115K
110K
106K
Mgt. Mean
100K
100K
100K
99K
100K
95K
91K
93K
Staff 25th percentile
96K
88K
93K
90K
92K
90K
Staff Mean
81K
82K
82K
86K
81K
81K
80K
84K
75K
80K
80K
79K
73K
78K
77K
Mgt. 25th percentile
75K
66K
70K
66K
72K
65K
65K
64K
61K
65K
58K
60K
Mgt. Mean Mgt. 25th Mgt 75th Staff
Mean Staff 25th Staff 75th
Staff 25th percentile
53K
50K
40K
1999
2000
2001
2002
2003
2004
2005
Ref WWW.SDMAGAZINE.COM
66
AVERAGE METROPOLITAN SALARIES
Chicago, Kenosha, Gary
81K Staff
105K Mgt.
Minneapolis St. Paul
89K Staff
97K Mgt.
Philadelphia, Wilmington, Atlantic City
88K Staff
98K Mgt.
Seattle, Tacoma, Bremerton 83K Staff
90K Mgt.
Detroit, Ann Arbor, Flint
77K Staff
98K Mgt.
Boston, Worcester, Lawrence
91K Staff
108K Mgt.
Portland, Salem
80K Staff
88K Mgt.

New York City,
No. New Jersey,
Long Island
93K Staff
121K Mgt.
San Francisco, Oakland,
San Jose
101K Staff
124K Mgt.
Washington DC, Baltimore
93K Staff
109K Mgt.
Los Angeles, Riverside, Orange
Co. 93K
Staff 114K
Mgt.
Denver, Boulder, Greeley
83K Staff
102K Mgt.
Atlanta 84K
Staff 103K
Mgt.
Houston, Galveston, Brazoria
87K Staff
106K Mgt.
Dallas, Fort Worth
86K Staff
104K Mgt.
Ref WWW.SDMAGAZINE.COM
67
If you look at a map of the U.S. from a
technology standpoint, probably 30 percent of all
the technology in the country is within 100 miles
of New York City. - Anthony W. Laufnick, IBM
Business Continuity and Recovery Services
68
REGIONAL UNEMPLOYMENT RATES
8
NEW YORK CITY
6
4
2
CONNECTICUT
NEW JERSEY
0
2004
2005
2003
Seasonally adjusted
Resource THE NEW YORK TIMES, Sep. 18, 2005
69
New York metro area employment, by industry
In thousands
CHANGE FROM JULY 2004
JULY 2005
Total
4,157.0
47.3
Retail trade
340.4
4.2
Educational and health services
17.5
771.7
Professional and business services
3.0
625.7
Manufacturing
- 5.4
146.1
Construction and mining
- 0.1
147.0
Transportation, ware- housing and utilities
- 1.5
131.4
Information
- 0.3
178.3
Financial activities
4.7
481.4
Leisure and hospitality
329.9
12.0
Resource THE NEW YORK TIMES, Sep. 18, 2005
70
Will New Jersey workforce swell or shrink this
year?
Dont Know 8
Increase 23
Decrease 15
No Change 54
Ref. Manpower Inc.,
71
WHATS HOT IN NEW JERSEY JOBS
Jobs to be gained Number Percent
Wages per year
2000 Number
2010 Projected
Occupation
Computer support specialists
18,300
32,200
13,900
75.7
43,630
Computer software engineers
15,500
25,700
10,200
66.1
76,060
Medical assistants
9,200
15,100
5,900
63.5
23,915
Home health aides
23,500
36,800
13,200
56.1
19,600
Computer systems analysts
20,400
28,500
8,000
39.3
71,875
Landscaping and groundskeeping workers
21,900
27,900
6,100
27.7
22,280
Child-care workers
31,200
39,800
8,600
27.6
15,535
Registered nurses
78,900
99,000
20,100
25.5
53,700
Nursing, aides, orderlies, and attendants
40,600
50,400
9,800
24.3
21,960
Teacher assistants
33,700
41,100
4,700
22.0
17,960
Food preparation and serving workers
44,400
54,100
9,700
21.7
14,765
Security guards
45,200
54,600
9,400
20.8
19,510
Janitors and cleaners
80,600
94,400
13,700
17.0
18,855
Waiters and waitresses
62,300
70,600
8,300
13.3
15,015
Office clerks, general
102,400
113,400
10,900
10.7
23,970
Source NJ Department of Labor, Labor Market and
Demographic Research, Occupational and
Demographic Research,
72
Over the next thirty years, the demand for
bright, talented 35 45 year olds will increase
by 25, while the supply is predicted to decrease
by 15.
Ref War for Talent Study by McKinsey Company
73
Higher Unemployment
Rise and decline in computer degrees
B.S. degrees in computer science and computer
engineering in the United States and Canada from
Ph.D.-granting schools
U.S. jobless rate for computer scientists
and systems analysts
20,677
19,990
18,856
17,048
14,822
5.2
12,692
10,161
1.3
1998
2004
2003
2002
2003
2001
2000
1999
1998
Ref Bureau of Labor Statistics and Computing
Research Association
As the number of U.S. IT graduates decreases,
where will U.S. employers have to get their IT
resources?
74
Most IT workers are male U.S. citizensThey are
fairly equally distributed around the country
72 Male
22 Northeast
24 West
Born in U.S.
U.S citizens
Non citizens
22 Midwest
20
40
60
80
100
32 South
28 Female
of workers
Data U.S. Bureau of Census
75
  • Business and Technical Skill Development of the
    IT Professional 1 of 5

Knowledge of Technology
General
Specialized
IT Expert Technical 'Guru'
System Integrator Liaison
General
Knowledge of the Business
Systems Architect Ideal combination
Line Manager Business Expert
Specialized
76
What Skills Do Companies Need for Successful IT
2 of 5
PriceWaterhouse Coopers
77
Intersecting Requirements of IT Jobs
3 of 5
Education
Technical Skills
Job Niche
Business and Soft Skills
Experience
Ref Department of Commerce
78
4 of 5
Source Gartner Group
79
Changes in In-House Skills by 2008 5 of 5
Increasing Need
Functional Area Process Knowledge
BPR Industry Knowledge Security User
Relationship Management Company Specific
Knowledge AT Architecture/Standards Managing
3PPs IT Governance Continuity/Disaster
Recovery Working with Virtual Teams Working
Globally Communication

Decreasing Need
Programming Operations Desktop/Help Mainfr
ame/Legacy

80
By 2010, the IT profession will split into four
domains of expertise technology, information,
process, and relationships 1 of 2
2010
2004
Technology Infrastructure and Services
Information Design and Management
Process Design and Management
Relationship and Sourcing Management
65
User Companies
40
30
20
20
10
10
5
IT Vendors and IT Service Providers
70
50
25
15
15
10
10
5
2005 Gartner
Gartner
81
Which Knowledge Should You Emphasize for Each
Domain? 2 of 2
Emphasized Knowledge
Technical Knowledge
How does this technology work?
Business-Specific Knowledge
What makes this company tick?
Core Process Knowledge
What processes make this area unique?
Industry Knowledge
What characterizes this sector?
2005 Gartner
82
Whom Would You Choose?
Likability
High
Low
High
Competent Jerk Mostly avoided
Lovable Star Desperately wanted
Competence
Incompetent Jerk Desperately avoided
Lovable Fool Mildly wanted
Low
Ref Harvard Business Review Competent Jerks,
Lovable Fools by Casciaro Lobo
83
CIOs need to raise the bar for staff performance
in all aspects of their job responsibilities
of CIOs who consider capability very important
for their team
of CIOs who believe their team is excellent at
this capability
Capability
Building and main- taining relationships with
business
77
20
Managing and implementing IT operations
61
35
Managing IT developments and programs
57
33
Planning future IT architecture and infrastructure
57
29
Ref PRICEWATERHOUSE COOPERS
84
First Level Managers should consider the
following
  • Pitfalls to Avoid
  • Trying to be popular instead of effective.
  • Failing to ask for advice.
  • Overlooking the role of supportive problem
    solver.
  • Failing to keep employees informed.
  • Micro-managing by overemphasizing policies,
    rules, and procedures.
  • Acting like the boss rather than a coach.
  • Training Suggestions
  • Network with other FLMs.
  • Identify a potential mentor.
  • Participate in FLM development workshops and
    seminars.
  • Register for FLM courses at local colleges and
    universities.
  • Subscribe to periodicals and FLM training
    journals and magazines.
  • Basic Success Strategies
  • Admit mistakes rather than attempting to cover
    them up.
  • Show consideration.
  • Provide details to all members of the team.
  • Exhibit confidence and belief in your team
    members.
  • Provide ongoing feedback, praise and recognition.

85
New Grads Lack Loyalty
Source National Association of College and
Employees
86
What Older Workers Want
  • Challenging work
  • Flexible working arrangements
  • Short-term, project-based work rather than
  • assigned weekly hours
  • Individual contributor assignments
  • No management responsibility
  • The chance to try on retirement with
  • phased programs
  • Minimal administrative hassles

87
TAKING ADVANTAGE OF HIGH TURNOVER
On average, every fifth person (20) in the
software companies we interviewed within the
United States moved to another position by the
end of the year. Annual turnover rates of about
21 percent are the rule, and more than two-thirds
of these are walk aways- people who leave the
company not because they are asked to leave but
because they get a better offer somewhere else.
Hey WAIT
Cool Jobs
BOSS
IS THIS GOOD OR BAD????
Source McKinsey
88
HIRING COSTS
  • 30K - 50K Accelerating Change Newsletter
  • 1 - 2.5 times annual salary Hewitt Saratoga
    Institute
  • 200K - 300K hiring training Fast Company
    Magazine
  • Direct costs
  • Time recruiting, selecting, training
  • Advertising, recruiter
  • Indirect costs (e.g., morale, customer
    satisfaction)
  • The Corporate Leadership Council
  • Front line employees 41 salary
  • Professional associates 177 salary
  • Managers 244 salary

89
  • How IT Talent is Recruited

90
Avenues to Employment
If youre going for the highest probability of a
paycheck, turn to your network of contacts.
25
COMPANY HIRES FROM APPLICANT POOL
70
COMPANY HIRES A KNOWN CANDIDATE
5
JOB-SEEKER IDENTIFIES IT NEED AND NEW POSITION IS
CREATED
SOURCE LEE HECHT HARRISON INC., NEW YORK
91
HOW TO BUILD YOUR NETWORK
  • STEVENS CLASSMATES
  • STEVENS ALUMNI MEETINGS
  • UNDERGRADUATE ALUMNI
  • ASSOCIATION OF INFORMATION TECHNOLOGY
    PROFESSIONALS (AITP)
  • SOCIETY OF INFORMATION MANAGEMENT (SIM)
  • THE CONFERENCE BOARD
  • PUBLICATION SEMINARS (CIO, INFOWEEK)
  • VENDOR SEMINARS (E.G., GARTNER, IBM)

92
THE TOP RETENTION SKILLS
GOOD WORKER - SUPERVISOR RELATIONSHIP
1.
CHALLENGING WORK EXPERIENCE
2.
OPEN AND HONEST COMMUNICATION
3.
OUTSTANDING TRAINING AND EDUCATION OPPORTUNITIES
4.
PAY FOR INCREASED CONTRIBUTION AND TO SHARE IN
FIRMS SUCCESS
5.
WORK/LIFE BALANCE
6.
MEDICAL, DISABILITY, LIFE AND LONG-TERM-CARE
INSURANCE
7.
LATEST TECHNOLOGY
8.
A DIVERSE WORKFORCE
9.
TOP-OF-THE-LINE RETIREMENT PROGRAM
10.
THE AVAILABILITY OF LIFE PLANNING TOOLS (EG.,
FINANCIAL PLANNING)
11.
HIGHEST PAYING EMPLOYER
12.
Ref Human Resource Institute, Eckerd College,
St. Petersburg, Florida
93
Top 6 Vehicles For Retaining Your IT Staff
  • Open And Honest Communications
  • Good Worker-Supervisor Relationship
  • Challenging Work Experience
  • Trust Among Coworkers
  • Opportunities For Advancement
  • 6. Balance Between Work And Outside Life

Luftman SIM
94
  • It isn't the money...

SIM
95
  • ...It's the Technology Leadership.

96
Importance of work issues to IT professionals
Source Gartner Group
97
Perceptions of Employee Turnover
Mis-alignment
REF Development Dimensions International
98
What are the principal reasons for turnover?
Dissatisfaction with Managers
Non-Monetary compensation
Monetary compensation
Limited Opportunity in company
Uncertain Work Environment
Turnover Retention Issues
Source David J. Dell, Research Director, The
Conference Board
99
Elements of a Retention Program (1 of 2)
  • Compensation
  • Pay within 10 percent market rates.
  • Integrate human - resource and IT functions
    for a stronger more proactive partnership
  • and allow IT functional for a stronger more
    proactive partnership and allow IT functional
  • managers greater flexibility in determining
    salary and compensation levels
  • Build defensive intelligence sources and survey
    often!
  • Set aside money for training that vests over a
    period of time that employees collect as they
  • stay with their organizations.
  • Offer time - and performance - based bonuses
    that pay out over a three to five year period.
  • Stock options!
  • Benefits
  • Health ,dental and vision are a given
  • Financial benefits include matching 401k ,
    pension plan , employee stock purchase plans ,
    and
  • tuition / education reimbursement.
  • Lifestyle benefits , including casual dress,
    telecommuting, flexible hours and sabbaticals
  • Training
  • Organizations that invest lass than 3 percent of
    payroll see twice the staff turnover than those

Gartner
100
Elements of a Retention Program (2 of 2)
  • Eliminate Burnout Through Staffing and Time Off
  • Staff to meet objectives, renegotiate service
    levels, co-opt user support or increasingly
    outsource after-hours premium support
  • Offer time-off to employees who have put in long
    hours for an extended period of time.
  • Poll Employees
  • Ask for employee satisfaction data once a year.
  • Use a 360-degree review process for managers to
    better understand hoe their staffs perceive them
    and the work environment.
  • Implement skip-level lunches to gain insight
    into regional or departmental problems.
  • Hire the Appropriate Profile
  • Everyone wants aggressive go-getters, but these
    people are most likely to go get the next best
    opportunity
  • Understand a persons cultural fit within the
    organization and the role for which he or she
    might be best suited in the long term.
  • Open Career Paths
  • Do not place artificial boundaries on career
    ladders. Allow an IT professional to grow in
    compensation and influence within his or her
    chosen career path.
  • Allow people to have the opportunity to build
    process management skills, even if they are not
    suited for people or project management jobs.

Gartner
101
Full-time employees said
that the following benefits are most important to
them.
The median time that employees spend thinking
about and making benefits decisions is 30 minutes.
Medical 92
31-60 minutes 7
1-2 hours 18
Vacation
68
401(k)/403(b) 67
0-30 minutes
57
Dental 55
Pension 42
Life Insurance 68
Sick leave 39
More than 4 hours 5
2-3 hours 11
3-4 hours 3
Disability 38
Note Total equals 101 because of rounding.
Note Multiple responses allowed.
Ref METLIFE INC. November 2004 study of employee
benefits trends in which 903 full-time employees
and 1,542 adult consumers were surveyed
102
HERZBERG JOB ENRICHMENT MODEL
Achievement Recognition The work
itself Responsibility Advancement Growth Salary
Company policy and administration Supervision Rela
tionship with supervisor Work conditions Relations
hip with peers Personal life Relationship with
subordinates Status Security
  • Very High Impact
  • High Impact
  • Medium Impact
  • Low Impact

103
Career Path Choices
Source Personnel Decisions Inc., A human
resources consulting firm in Minneapolis
104
Most Important Job Characteristics from IT Staff
Perspective
R. Lopez, Stevens Institute Masters Thesis
105
R. Lopez, Stevens Institute Masters Thesis
106
R. Lopez, Stevens Institute Masters Thesis
107
Growth of Complexity Through Flow
High
ANXIETY
FLOW
Challenge
BOREDOM
Skills
High
Low
Ref Good Business, Leadership, Flow, and the
Marketing of Meaning by Mihaly Csikszentmihalyi
108
Methods Used to Understand the Needs and Desires
of IT Employee
Percentage
SOURCE THE AMERICAN PRODUCTIVITY AND QULITY
CENTER IN HOUSTON
109
Did your company handle the layoffs with tact and
respect for the affected employees?
30 YES
30 NO
14 Dont Know
26 No Opinion
Ref Computerworld
110
10 secrets to letting people go with dignity
1. Give warning. All performance-based firings
should begin with a warning or probationary
period. If you let employees know theyre on the
bubble, they just might turn things around. If
theyve put in years of services, its the least
they deserve. 2. Document, document, document.
Once youve told an employee hes on probation,
document every task and interaction. The better
records you keep, the easier it will be to
justify your actions should you find yourself
defending them in legal proceedings. 3. Time it
right. Fire early in the day and early in the
week. The worst time to terminate an employee is
the day before a weekend or holiday. 4. Prepare
the paperwork. Dont wait until after you fire an
employee to deliver termination paperwork. Pay,
including any benefits and unused vacation,
should be delivered on the spot. This is not only
good policy, frequently its the law. 5. Dont
go it alone. Having a representative from the
human resources department in the room adds a
sense of gravity and finality to the termination
conversation. And if the employee asks a question
you cant answer, your expert is right there. It
also provides a witness on your side should you
end up in court. 6. Ensure privacy. Make it
clear that only you and the HR rep will take part
in the termination meeting. Reassure the employee
that nobody else will be in on whats happening.
Neglecting this will make him self-conscious. 7.
Be brief. Say what you have to say, say it
clearly and dont say any more. Prolonging the
meeting allows the employee to believe he is
involved in a negotiation- that there may be a
way out. When he realizes there isnt, he will
feel betrayed. 8. Watch your tone. Choose your
words carefully, but make sure you convey a tone
of cordiality and sympathy. Be compassionate but
firm, honest but guarded. Never say, I know what
youre going through-even if you do. 9. Seek
feedback. Although its important to keep the
meeting short, encourage the employee to voice
his feelings after the news has been delivered.
If he doesnt answer immediately, count to 20
before moving on. The last thing you want is a
reputation for being heartless. If recriminations
result, however, take charge and cut him off,
remember that youre declaring him fired, not
engaging in a dialogue. 10. Give a good
send-off. Always offer words of encouragement and
confident in the employees future career. Stand
and extend your hand to indicate the meeting has
ended. And of course, thank the employee for his
service. But dont be surprised or hurt if the
employee declines to thank you for firing.
- M. Villano
111
Seven steps to take instead of issuing pink slips
112
Unemployment survival tips
Losing ones job can put a mighty bump in a
marriage, but couples can take measures to smooth
the path.
Use this time as opportunity to reconnect if work
has pushed you apart.
Negotiate household duties to lighten each
others burdens. Be flexible roles will change.
Schedule times to talk about important issues and
feelings. Communication counts.
Get up and get dressed every day.
Express emotions. Dont shut the other spouse
out, even to spare feelings.
Turn to god. Some couples say faith draws them
closer.
Each person is entitled to set a limit on how
much anger, complaining, or venting can be
tolerated at any given time.
Expect anger, depression, and denial.
Keep a routine. Establish a pattern for each day.
Respect each others limits.
Find a balance among job hunting, household
tasks, and a temporary part-time source of
income. The stop-gap job, is it doesn't interfere
with the work search, might assuage depression by
getting the unemployed person out of the house.
Get and give reassurance. Also hugs.
Find inexpensive activities to do as a couple.
Communication honestly about sexual desire.
Ref Knight Ridder Newspapers
113
Rev up sputtering employee loyalty
  1. Do I understand what is expected?
  2. Have I received proper training?
  3. Are refresher and continuing education courses
    offered?
  4. Do I have room to grow in my job?
  5. Is there room to exercise judgment?
  6. Have I been exposed to other functional areas?
  7. Has my boss discussed possible routes of
    advancement?
  8. Do I have good working conditions? Are they safe?
    Well-equipped?
  9. Is the boss reasonable? Does he regularly ask for
    my feedback?
  10. Does the boss ever tell me Ive done a good job?

114
PLANNING AN EFFECTIVE ORIENTATION
  • A genuine, warm welcome from supervisors and
    co-workers (there should be room for fun and
    celebration)
  • Preparation of co-workers (at least a telephone
    call in advance of introduction)
  • Introduction to co-workers and other employees in
    the organization
  • Overview of job setting including tour of
    facility
  • Assigning a volunteer mentor
  • Providing an employee manual/handbook - enough
    information without overload
  • Brief history of organization
  • Organizational overview
  • Other items included by personnel department
  • List of specific job requirements
  • Job responsibilities
  • New employees position in organization
  • Work values
  • Work expectations of the employees
  • Critical facilities (e.g., restroom, copy
    machine, parking,etc.)
  • Working hours and breaks
  • Pay and performance appraisal policies

115
Effective Interviewing
  • Compose an interview team for each position
  • Create a candidate scorecard
  • Prepare ahead of time
  • Conduct the interview in 10-15 minute time
    increments
  • Allow the candidate to do the talking
  • Check off key criteria during the interview
  • Focus candidate on individual accomplishments
  • Write the interview assessment on a scorecard
  • Candidate Testing
  • Behavioral Testing
  • Business Case Interview
  • Perform Additional Screening
  • Assess Candidates

116
The Art of Mentoring
Good mentors
  • Are trustworthy and keep confidences
  • Have sense of humor
  • Are good listener
  • Admit mistakes and share failures
  • Can discuss a broad range of issues
  • Are comfortable in giving and receiving feedback

Good mentees
  • Are trustworthy and keep confidences
  • Possess openness and honesty
  • Are introspective
  • Can admit mistakes and share failures
  • Are realistic in expectations
  • Are accountable for own development

117
Staying Motivated
Six Key factors that IT managers should consider
in any motivational program to increase
productivity and help reduce IT staff turnover
  • Provide strong leadership during periods of rapid
    and random change
  • Provide for workers personal development allow
    people to attend
  • technology conferences and give them a clearly
    defined career path
  • Allow people to learn new technologies as they
    emerge
  • Give people the resources they need to do their
    jobs well
  • Be competitive in terms of salary and
    benefitsconsider annual salary surveys to keep
    abreast of salary levels
  • Make certain people perceive that what they do
    on the job is meaningful work

DATA ZAWACKI ASSOCIATES
118
Primary and Secondary Cultural Dimensions Model
Work Background
Geographic
Education
Age
Sexual Orientation
Parental Status
Race
Ethnicity
Gender
Income
Marital Status
Physical Qualities
Military Experience
Religious Beliefs
Primary Dimensions
Secondary Dimensions
119
  • IT lifestyle indicators
  • On average, IT professionals go to bed at 11 p.m.
    and get
  • 6.4 hours of sleep per night
  • 20 are night owls who usually retire after
    midnight
  • 57 havent read a book of fiction in three
    months
  • 45 dont read a newspaper every day
  • IT workers on vacation
  • 61 interrupt a vacation to call in to work
  • 50 have worked during a vacation
  • 35 take a laptop or a handheld computer
  • 26 take a cellular telephone
  • 25 take a pager
  • 29 have forfeited earned vacation days they
    couldnt use

120
Workplace Demographics
121
Information Technology Diversity
1990 (3 million)
2000 (9 million)
White
82.4 73.8
8.2 7.6
Black
American Indian
0.4 0.3
Asian
5.7 11.4
Other
1.0 0.2
Hispanic
2.4 5.1
Mexican
N/A 1.6
Ref The Dallas Morning News analysis of U.S.
Census Bureau
122
U.S. IT POPULATION BY RACE
BY RACE
2000
2050
White
71
53
Hispanic
12
24
Black
12
13
Asian
4
9
Other
1
11
COHORT SIZE
DISTRIBUTION IN IT SHOPS
BIRTH YEAR
BY AGE
GEN Y
70M
11
1980-2000
GEN X
49M
59.4
1961-81
Baby boom
76M
29.6
1946-64
Ref Thorton A May
123
Is IT burnout a serious issue at your company?
29 No
71 Yes
Data Meta Group IT Staffing and Compensation
Guide Survey of 250 IT Executives
124
Does your company offer skill-development
opportunities to alleviate IT morale issues?
40 Yes
60 No
Data Meta Group 2004 IT Staffing And
Compensation Guide Survey of 650 IT executives
125
How is IT morale measured by your company?
2004
2003
Employee Satisfaction Surveys
Performance Reviews
Suggestion Box
Informal Process
Focus Groups
20
60
40
80
100
of Respondents
Note Multiple responses allowed.
Data Meta Group 2004 IT Staffing and
Compensation Guide Survey of 650 II executives
126
What actions has your company taken to boost IT
morale this year?
Skill development
Better retention program
Review salaries more often
Raise salaries
Hire more people
Offer cash incentives
Improve communication
Implement knowledge management
Move company to new location
Focus on more performers
Implement team building
Leadership
Note Multiple response allowed.
10
20
30
40
50
60
of respondents
Data Meta Group IT Staffing and Compensation
Guide Survey of 250 IT Executives
127
Whats the greatest source of workplace stress
for IT Professionals?
4 other or Dont know
1 Pace of technology change
4 Commuting
12 Work-life balance
24 Office Politics
55 Increasing Workloads
Data RHI Consulting Survey of 1,400 CIOs
128
How IT Workers Can De-stress
  • Update your supervisor and co-workers regularly
    on the status of your projects
  • Make sure you know whats expected of you and
    when its due
  • Prioritize your projects with feedback from your
    supervisors and co-workers
  • Try to make your deadlines
  • Take a break every hour and stretch, especially
    the back, neck and shoulders
  • Set aside time to familiarize yourself with the
    latest developments in your field
  • Have regular massages
  • Eat a well balanced diet
  • Exercise at least three times a week
  • Work with a stress buddy who can encourage you
    to keep up your stress- reducing practices
  • Keep a stress diary to help identify ways to
    reduce high-stress situations
  • Take time off if youre stressed, whether a walk
    around the block or an extended vacation
  • Ask for help when you need it.
  • Make sure your work area includes ergonomic
    equipment, proper lighting, and good ventilation
  • If all else fails, find a new job

REF STRESS MANAGEMENT AND COUNSELING CENTER
129
AVERAGE ANNUAL VACATION DAYS
ITALY
FRANCE
GERMANY
BRAZIL
BRITAIN
CANADA
SOUTH KOREA
JAPAN
U.S.
10
20
30
40
0
INCLUDES PUBLIC HOLIDAYS
Data World Tourism Organization
130
DR. LUFTMANS STRESS RELIEF KIT
BANG HEAD HERE
Directions 1. Place on firm, flat surface 2.
Follow instructions in circle 3. Repeat until
stress is relieved or consciousness is lost
131
E-recruiting providers
  1. Monster.com
  2. Futurestep
  3. HotJobs.com
  4. Headhunter.net
  5. Dice.com
  6. Flipdog.com
  7. StepStone
  8. BrassRing
  9. CareerBuilder
  10. JobPilot
  11. Jobline International
  12. Techrepublic.com
  13. Airsdirectory.com
  14. Recruitersonline.com

132
Stop surfing for a job and start searching for a
Career
GOOD SELECTION OF JOB POSTINGS
ROBUST SEARCH ENGINE
USER CONFIDE-NTIALITY
RESUME SCREENING /TRACKING
MARKETING HELP FOR CLIENTS
JOB SITE
Ref PC Week
133
Recruiting Sites
DATA VENDORS
134
  • IT SALARY WEBSITES
  • www.experienceondemand.com
  • www.careermag.com/salary/salary.html
  • www.ioma.com/ioma/rss
  • www.jobsmart.org/tools/salary/index.htm
  • www.npa.org/member/salary.html
  • www.brint.com/jobs.htmsalary
  • www.computerworld.com
  • www.informationweek.com/Itsalaryadvisor
  • www.execunet.com
  • www.salary.com
  • www.airsdirectory.com/library/staycompetitve/salar
    ysurveys

135
Tips on asking for a raise
  • If you are uncomfortable asking co-workers
    point-blank what they make, ask if theyll share
  • a general range with you. Be sure to compare
    amount of experience, hours, and amount of work.
  • Dont worry if your office has a policy
    forbidding salary discussions. Charles Craver, a
    labor
  • expert at George Washington University Law
    School in Washington, says your right to talk
    about your pays is protected under the National
    Labor Relations Act.
  • Workers can also look to various salary surveys
    found online or in trade magazines.
  • Use the web to plug in occupation, experience
    level, and geographic location to find out what
  • the typical median pay is locally for the job
    and compare it with national averages.
  • If youre searching the Web for salary
    information, advisers at www.Careerbuilder.com
  • suggest narrowing that search to your field.
  • Another good place to look is the want ads.
    Search for positions similar to your own and see
  • what other companies are offering new hires.
  • Just because others are making more money doesnt
    mean youre automatically entitled to the same.
  • Many Companies pay people what they think the
    person is worth, not what others with the same
    degree and experience are getting, he said.
  • You have to demonstrate the additional value you
    bring to the corporation.

Source Knight Ridder Newspapers
136
Organizational Benefits Gained Through Workplace
Education Programs
Percentage of employees Reporting Benefit
  • Improved employee morale/self-esteem
    ...87
  • Increased quality of work
    ..82
  • Improved capacity to solve problems
    .82
  • Better team performance.
    .82
  • Improved capacity to cope with change in the
    workplace...75
  • Improved capacity to use new technology
    .73
  • More employees participating in job-specific
    training..73
  • Higher success rate in promoting employees within
    the organization..71
  • Improved effectiveness of supervisors
    ...69
  • Increased capacity to handle on-the-job
    training..67
  • Improved labor management relations
    ..65
  • Increased output of products and
    services...65
  • Higher success rate in transferring employees
    within the organization...60
  • Improved results in job-specific
    training56
  • Increased profitability.
    ..56
  • Reduced time per task...
    .56
  • Quicker results in job-specific
    training..55
  • Reduced error rate..53
  • Better health and safety record...
    .51

N 55
REF The Conference Board
137
  • Key Training Issues
  • What are you spending? Is it the right amount?
  • Have you chosen the best mix of delivery
    methodologies for your particular users?
  • How do you evaluate effectiveness of your
    program?
  • What is your enterprise's ROI for training?
  • How does training fit into your overall Human
    Resources strategy?
  • What is the effect of your training program on
    technology costs?
  • What are world-class practices, and how does your
    organization measure up to the best
    performers?

138
Average Training Allocation Percentage of IT
Operating Budget
17.7
17
15.5
1996-03
1994
1995
Ref Deloitte and Touche
139
Does your company provide any of the following
training/education courses for your IT staff
(please select all that apply)?
N495
Good at creating IT career path
Poor at creating IT career path
total
Technical skills
85
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