Successful Technological Innovations are Results Driven - - Not Process Driven
Focus of IT Governance should be less bureaucracy to make it easier to implement technological innovations
IT Governance and Metrics are the key to productivity improvements. When the correct factors are measured - behavior is modified and encouraged resulting in improved productivity and operating performance. When the wrong things are measured there can, and offend are unintended negative consequences. Productivity can degraded as the wrong behaviors are encouraged. For this reason, it is critical for KPI to be driven by operational and strategic objectives.
In looking at ways to improve the odds of a successful implementation of a new technology CIOs and IT Managers should re-visited the traditional risk assessment process. We have seen many CIOs and IT Pros both fail and succeed in implementing technological innovations.
There are several 'common sense' things that stand out which should be the rules of the road for all such efforts. Individuals that follow these rules normally are successful. Those that do not — fail more times than not. The seven rules are:
Have realistic and controllable measurement KPI metrics. A major distribution enterprise used as a KPI metric the number of times a plane was late and tied their management bonus to this. Over time they learned, people cannot control the weather. They can control maintenance. The KPI metric was changed to include this fact and exclude weather. A key rule to remember is, "to measure is to modify behavior.”
Have management and staff understand what the value and the cost of a technological innovation is. A major restaurant chain had a CFO who always asked two questions, "How will a technology bring more customers into the store?" and "How many meals do we have to sell to pay for the innovation?" Following this philosophy during his tenure. the company grew to one of the largest restaurant chains in the country.
Don't re-invent the wheel. It is great to say that you have a unique solution. What good is it if you must pay two to three times the cost to develop something versus buying the same item on the street such as an eCommerce shopping cart..
Provide results quickly. If an enterprise waits until all the customers are in place to generate a profit they would not succeed over the long term. A change followed by a quick benefit is the most valuable innovation. If an innovation provides a positive result, then and only then will more innovation follow.
If the technology is not working as expected, stop. As you are implementing something don't be afraid to say it is not working. Don't get lost in the process. If the result is not there cut your losses.
Implement new technologies with small groups. The eCommerce revolution is an excellent example of this. One by one the good managers found out what worked, implemented it and then expanded the technology. The risk is lower and if it works you have a great reference for the idea.
Re-think why you are doing something. Yes, it is good to innovate. However, not all innovations are worth doing and there is cost associated with each one. At times it is better to eliminate.