Introduction
A satisfying relationship between IT and line of business is maintained
through ongoing dialogue that is meaningful to both parties. The discipline
of "Conversations for Alignment," a title for a simple technique for making
and managing commitments, enables such a dialogue. My consulting group
and I have done a good deal of research into what makes a strong supplier/customer
relationship. The bottom line is trust. However, trust needs to be earned
through a series of conversations and commitments that have been met.
Buyers tell us they want to be informed, understood, supported, and respected.
Suppliers tell us they want the opportunity to assess the value of their
offerings to prospective applications, to be treated fairly, and to have
the opportunity to make good on commitments.
Note:
This note first appeared in a column by James F. Dowling in Mid-Range
Computing. Look for other previously published Mid-Range
Computing columns by Mr. Dowling at this site or visit Midrange
Showcase at www.midrangecomputing.com/showcase/.
Communication
Breakdown
If both parties know what they want and if the needs are well aligned,
what causes supplier/customer relationship breakdowns? It is that perennial
scapegoat named communications. One case study reveals many of the root
cause factors. Following is the "Reader's Digest" version.
A
financial analyst wanted a file server but knew that the IT architecture
disallowed personal servers in favor of workgroup servers (he had been
refused before when he requested one in response to frequent disk space
outages). He therefore designed a creative way of reducing the corporation's
tax liability using a large database, a collection of spreadsheet programs,
a data extraction tool, and a file server. The internal rate of return
was computed to be more than 500 percent. Hours after submitting his request,
the financial analyst was visited by a consultant who had been charged
with performing due diligence on the request and guiding the client and
IT to a knowledge-based solution selection.
As
the consultant asked more questions about the tax issue and the algorithms,
the mantra of "500 percent ROI" came frequently. The consultant left the
meeting with a clear set of requirements (for the wrong solution). The
financial analyst took immediate steps to emphasize the fact that the
company was losing money while IT action was slow.
The
consultant made a connection between this analyst's solution and a similar
situation in two other divisions, and recommended an add-on package to
the company's financial administrative system to solve both problems-albeit
at a somewhat higher cost and with significantly less complexity. He also
recommended that additional data be propagated to the financial analyst's
datamart and that his workgroup server be upgraded to provide enough disk
space to support the tax computations in the interim. Both parties got
more work than they bargained for and the company got a superior solution.
What
Just Happened
Let's examine the conversations. Why didn't IT hear and respond to the
financial analyst's request for better performance from the workgroup
server? How did IT get into the position of having to refuse the earlier
server request? What suggested that the tax reduction "Trojan Horse" would
work? Why did the tax issue lie as a dormant issue in three divisions
without IT attention? The root cause lay in failure to address the four
customer and three supplier relationship issues listed above.
The
customer (financial analyst) did not trust the supplier (IT) to provide
sufficient disk space reliably because two attempts to resolve the issue
failed due to supplier fault. The first attempt to get a personal file
server was a clear sign that IT did not appreciate the problem, and the
second attempt offered IT the chance to correct prior faults. The consultant
came to a clear understanding of the real problem (the tax issue), although
it had only been a front. When the consultant collected and examined facts,
and applied business decision-making practices, all parties benefited
from the solutions.
Conversations
For Alignment Process
Conversations for Alignment involves seven steps:
- The customer
commits to provide a statement of needs and how they relate to business
results.
- The customer
and supplier come to a shared understanding of the customer's needs.
- The supplier
commits to providing a solution or a set of solutions on or before an
agreed upon date and time.
- The customer
and supplier negotiate a solution, and the supplier commits to provide
a delivery schedule and success criteria on or before an agreed upon
date and time.
- The supplier
delivers the solution and obtains confirmation from the customer that
it is acceptable.
- The customer
and supplier negotiate the solution schedule and success criteria and
the supplier commits to satisfactory delivery.
- The customer
and supplier review the process from inception to completion and identify
areas where either party was unsure of the outcome or otherwise became
dissatisfied with the relationship.
This simple
process works because it employs a series of commitments made and commitments
met from the get-go. Each party knows what they are committing to and
has the opportunity to make a thoughtful commitment.
What happens
when either party finds that he cannot meet a commitment? The breakdown
must be communicated explicitly and a new solution or delivery date must
be negotiated promptly.
This simple
discipline is both a core competency and a core value of highly reputable
suppliers, as well as consistently satisfied customers. It may not be
apparent, but either party can initiate the practice without explicitly
discussing it with the other. It is contagious and welcome like any other
form of respectful recognition. The long-term return from the practice
is lower risk and shorter cycle-time, which adds up to lower cost and
higher delivery performance.
This column
will continue to explore the change/size paradox—big companies desiring
speed and growing companies desiring stability. The author would appreciate
feedback on material presented as well as suggestions for future study
and reporting. The general theme is IT management and the goal is to make
it easier to get clients what they want and what they need to succeed.
About
The Author
Jim Dowling is VP of the Alignment Consulting Practice at TechnologyEvaluation.Com,
Inc. located in Woburn, Massachusetts. TEC researches IT products and
suppliers as well as the ways companies obtain business value from IT.
TEC's consulting services remove time, risk and ultimately cost from IT
related decisions.
Jim
can be reached at jdowling@TechnologyEvaluation.COM.