Wednesday, April 23, 2008

The IT Department: Still the Same?

During much of my tenure as an IT journalist and research analyst, the general perception of the corporate IT organization by the rest of the business was one of disdain. In short, IT got no respect and, in some cases, it deserved little or no respect. It was seen as insular, a place where the geeks hung out - usually in a corner - to test new whiz-bang technology that may not necessarily be a help to the business as a whole. It lacked people skills and was more concerned with technology than the overall health of the business.

Fast forward a few years and there are signs of respect emerging. For one, the rise of the Internet as a commercial tool has helped boost IT into a major player. Better applications that have been a help to customer relationship management have been instrumental in keeping customers and increasing revenue. Add to that the fact that more "end user" workers have technical chops today than a decade ago, and you have the foundation for a better understanding of IT and the business units that can benefit both sides.

Now, there may be evidence that IT is indeed finding religion and providing a lot more value for the business. Recent research from The Hackett Group concludes that companies that are top performers in IT "business value management" also outperform their peers across a wide range of financial and profitability metrics. What's even more encouraging is the potential melding of IT and the business units through what another research firm calls "enterprise guerrilla application development," involving applications developed outside the IT organization by technically competent information workers in the end-user business units. "End users who used to be wholly dependent on IT will start relying on enterprise mashup platforms in a bid to be more self-sufficient in their application development needs," said Vishwanath Venugopalan, analyst at The 451 Group. "IT departments will seek to cede just enough control to empower end users while maintaining a consistent operating environment that adheres to regulatory requirements."

So, rather than being judged solely on its efficiency (read: keeping its own costs as low as possible), there are some forward-thinking organizations who are seeing the effectiveness of IT in boosting revenue and profitability, and how it can work with the entire enterprise to help spur business growth. I'm sure there are companies that still judge IT by its ability to spend less. If they're serious about growing, they'll have to rethink their metrics.

Monday, April 21, 2008

Closing the `Generation Gap' at Work

I have to admit being somewhat amused with the cross-generation sneering match I sometimes see between Generation Y (aka, the Millennials) and the Baby Boomers when it comes to work. While the former are largely trying to find their way in the workplace, they tend to butt heads with the latter, the ones who are running much of corporate America today.

For instance, close to 20% of North American companies polled in a recent survey say it's hard to reach Millennials, more than twice as hard to reach other demographic groups, such as women, the physically challenged, and major ethnic groups. From my vantage point as a commentator on workplace issues, plus the fact that I work with quite a few Gen Ys, the solution comes down to understanding and empathy, mainly on the part of the Boomers.

Gen Y may like to march to its own beat, but it's we Boomers who have encouraged that! You might respond with "Really?!?" Yes, really! As we reared our children, many of us instilled in them the notion that they could accomplish anything they put their mind to accomplishing, as well as to stand up for themselves and realize that they had something positive to contribute to society. But in the workplace, Gen Y sees our Boomer brethren acting differently, especially in companies that value (read: demand) long hours and dedication to the job.

But Gen Y isn't stupid. In fact, I believe they're smarter and savvier than we would like to give them credit for. If they know they can improve their work lot elsewhere, they will. That's why they're more apt to change jobs more frequently, unlike our generation and our parents'. That's why they're more likely than we are to value their leisure time.

And it's why we need to recognize that and re-engineer our workplaces if we are to enjoy business success. Gen Y is not made up of inmates who want to run the asylum; they represent a new order that could well make revolutionary changes in the workforce as we move further into this century.

If you're a Baby Boomer or part of Gen Y, how do you see this generational clash playing out in the workplace. I invite you to share your perspectives.