Business Logic: Thoughts on IT Resources
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1 Business Logic: Thoughts on IT Resources Dr. Kamontip Snidvongs Co-sponsored by Business Logic: Thoughts on IT resources Dr. Kamontip Snidvongs Managing Director Anabas Company Limited 1 1
2 How effective have we been in serving our customers? Multi-Industries Diverse business languages What our customers think of us - today They use technical jargon that's meaningless to us They don't understand our business They don't speak our language They talk about their solution, not how it helps us They deliver things that do not meet our requirements 2 2
3 What our customers think of us - 35 years ago They use technical jargon that's meaningless to us They don't understand our business They don't speak our language They talk about their solution, not how it helps help us They deliver things that do not meet our requirements Why have we not changed? The only person who likes change is a wet baby Roy Blitzer, Educator 3 3
4 Why change? Insanity is doing the same thing over and over again and expecting different results Albert Einstein, Physicist Use crisis as the urgency for strengthening our human capital A problem is a chance for you to do your best Duke Ellington, Musician Without problems there would be no reason to improve Problems are just opportunities in work clothes Benjamin C. Jones Henry Kaiser, American Industrialist Known for building a cargo ship in 4.5 days during World War 2 4 4
5 Crisis and Thai labour market 1% GDP reduction = 200,000 job losses Key sectors badly hit in Q1, 2009 tourism and automotive Main workforce hit temporary workers and staff with < 1 year of service Source: NESDB, April 2009 Crisis impact on HR strategies Steady Bending Hard hit Samples Low cost retailers Energy companies For-profit education Actions Cut low performers Align top performers & top opportunities Scout talent Invest in workforce planning Limit salary increase Reduce training Samples Consumer goods Pharmaceutical Actions Performance-based staff reduction Freeze some salaries Reduce bonus pay Delay non-essential hiring Samples Financial services Auto Airlines Tourism Actions Big layoffs No hiring Freeze all salaries No bonuses Retain select key leaders Adapted from Source: Mercer 5 5
6 Where are we, what will we do? Internal IT? Actions Cut low performers Align top performers & top opportunities Limit salary increase Invest in workforce planning Nurture talent Reduce training or prepare staff for upturn?? IT Supplier? Steady Bending Hard hit Actions Performance-based staff reduction Freeze salaries Reduce bonus pay Delay non-essential hiring Spot & nurture talent Reduce training or prepare staff for upturn?? Nurture IT talent, use crisis as opportunity to bridge the gap Technical Knowledge & Skills Business Understanding 6 6
7 Normal gaps at each stage of IT services Meaningless technical jargon They don't speak our language Mouse Communicate Understand Requirement Propose Solution Develop Solution Implement Solution They don't understand our business They don't speak our language Generic, one size fits none Solution, not how it helps us Not aligned to needs and priorities What s the plan? Late with higher costs Blamed when changes needed Not informed on progress Deliveries not to expectation Don t benefit fully from investments Prepare workforce for the upturn enhance their competencies Competencies What - Technical Functional Knowledge & skills needed to effectively perform certain type and level of work How - Behavioral Core Critical behaviors required by all Leadership Critical behaviors expected of people leaders 7 7
8 Ex: Generic competencies for designers, architect, developers Information seeking Conceptual/critical thinking Creativity Functional Achievement oriented Service mind Expertise Integrity Teamwork Core Ex: Commercial organization s competencies Strategic Skills Understanding business Making complex decisions Creating new & different Results Oriented Achievement focused Organized Getting work done through others Managing work processes Interpersonal Skills Communicating effectively Managing diverse relationships Open-minded Flexible 8 8
9 Bridging the gaps Listen and learn Know audience Simple, clear, useful Communicate Understand Requirement Propose Solution Develop Implement Exploit Benefits Understand customer s business Know their priorities Use their language Specific to needs Innovative Clear benefits Fits priorities Clear, agreed requirements Planned Risk mitigated Progress known Changes managed Delivered to expectation, time, budget Training and documentation How to make full use of solutions Data for better decisions and competitive advantages IT resource development review - key questions How are we developing our people? Are our training programs based on competency requirements or gaps? How effective is our return on training investments? How good is our coaching culture? 9 9
10 Select training with effective learning modes Learning Modes Retention rate (%) Immediate application 90 Practice 75 Discussion 50 Demonstration 30 Audio visual 20 Reading 10 Lecture 5 Source: Corporate Universities, Jeanne Meister HR development goes beyond training 10 10
11 Maximize values from your training investments Results Behavior Learning Reaction What effects do the changes have on the business? What do participants do differently after program? Extent to which participants knowledge & skills increase How participants react to program Kirkpatrick s Four Level Model to evaluate training Who can evaluate what? Results Behavior Learning Reaction What effects do the changes have on the business? What do participants do differently after program? Manager Extent to which participants knowledge & skills increase How participants react to program Trainer 11 11
12 There is no free lunch Results More complex Behavior Learning More time Higher cost Reaction Behavior change and leader s roles Change occurs only if a person: Behavior Wants to change Knows what and how to do Works in the right climate Is rewarded for changing No behavior change does not necessarily mean ineffective training 12 12
13 Immediate supervisor creates climate that affects desire to change Preventing forbids what they learn, or has conflicting leadership style Discouraging does not explicitly forbid but shows clear displeasure, or is negative example Neutral ignores training attended, no objection to change if job done Encouraging interested in learning and helps transfer learning to job Demanding knows what they learn, ensure learning transfers to job, learning contract Rewards can be from within oneself and from others Satisfaction Pride Internal Achievement of positive results Positive Pressure Praise from boss Recognition by others Monetary pay increases, bonuses Promotion 13 13
14 Their behavior changes are the means to achieve your desired results Results Tangible: Requirements satisfied Increased productivity Improved quality New & different solution... Intangible: Better relationships Improved decision-making... Top 6 reasons for CEO s sleepless nights Building leadership capabilities Acquiring key talents Keeping key talents Increasing staff productivity Measuring contribution of human capital Succession planning Source: Mercer Study 14 14
15 I would like to leave you with a story Alice: Would you tell me, please, which way I ought to go from here? Cheshire Cat: That depends a good deal on where you want to get to. Alice: I don't much care where -- Cat: Then it doesn't matter which way you go. Alice: --so long as I get somewhere. Cat: Oh, you're sure to do that, if you only walk long enough. Thank you for your attention Dr. Kamontip Snidvongs 15 15
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