Management Diary The Quintessential Survival Guide in the Corporate Quagmire!

When Politics Prevent Innovation - Or? Still Fighting Battles and Losing Wars


The objective is to beat the competition and make money. Everything a business organization does should be focused on that simple objective, with interpretation through various Vision and Mission Statements. However if we take a survey of how our organizations spend our energy, often that objective is lost in a web of internal politics and positioning. Of course competition is normally good - regardless of whether it is internal or external - to the point we do not lose focus on company objectives as the ultimate outcome of our competition.

We often use the phrase "winning battles and losing wars." That phrase really hits home when we record all the things we do, every day of our business lives, that result in a situation where we are struggling with more fervor for internal positioning then committing energy in activities to beat our competition. What does "winning battles and losing wars really mean?

Perhaps the sales and operations groups are having difficulty with product and contract provisioning. Sales of course wants to sign contracts, get acceptance, and quickly start customer billing - their commission depends on shortening the book to bank process. Operations is unhappy because the contracts tend to stray from the letter of a product or service. Thus, operations may dig their heels in and not expedite provisioning while the "bring the sales guys into line."

What is the result of this little battle? Of course, the customer does not receive service within the want date and the company does not get paid as quickly as they would with a fast implementation and acceptance. And I, as your competitor, will be aggressively spending my time eroding your market share. The customer is angry, the sales and operations people are angry, and your image in the industry is tarnished while the competition quickly moves to exploit your weaknesses.

Let's use a different example. Your organization has the same challenge every other organization around the world has - a need for higher compute power, and a need to lower capital expenses on IT-related equipment. So we look into our bag of tools and determine a few relatively easy innovations could meet both objectives. You determine you can save money and increase compute resource through:

Server consolidation Disk consolidation/virtualization GRID computing Easy, right?

In Platform Computing's recent study "Organizational Politics as a Barrier to

Implementing Grid Computing" 79% of company managers indicated that resource consolidation and virtualization should be considered high priorities for an organization's IT planning, however 89% of the same companies indicated organizational politics and other issues could pose a major barrier in accomplishing consolidation.

Why? Operating units, managers, and individuals have an inherent desire to control their own resources. Moving an application to a consolidated server platform may result in the application user being denied the level of priority they believe is due them is cited as a major concern. In addition, if existing resources are identified as potential contributors to a virtualized disk or compute platform, there are strong concerns another division or operating unit could even grab priorities and deny processing at existing or desired levels.

An even greater concern may be the potential for losing additional operating budgets - resource consolidation by nature reduces the cost of doing business, thus it is expected individual units will require less funding than they currently receive.

Of course in most cases this is simply not true - however it is a strong perception.

Now let's talk a bit more about GRID. You have probably heard about it - and have a nagging thought in the back of your head eventually you are going to have to deal with it. You know it is going to seriously disrupt conventional ideas about systems management and resource utilization, and it may be one of those thought s that you want to put out oif your mind until the last possible minute.

Let's look at some simple GRID facts:

Properly employed GRID will greatly increase the amount of compute resource available to your company. In the article "GRID Computing," Royal Bank Insurance gives the example that actuarial calculation requirements were reduced from 18 hours to 32 minutes upon employment of their enterprise GRID. Monsanto claims in the same article they have reduced their new server purchase year over year by 90 percent Morgan Stanley, Charles Schwab, Wachovia, and others have announced consolidating enterprise desktops into an enterprise processing GRID With this level of enterprise adoption of GRID technologies, it is clear this is a technology we are all going to deal with within the next couple years. So if the statistics mentioned in Platform's survey are true, there is potentially going to be a lot of organizational trauma. However looking at the money savings, it is very clear that the benefits of employing GRID resource virtualization within an organization are tremendous.

Thus the question should not be whether or not an individual or section will lose control of a small number of resources, but rather how much more work they can potentially do if their existing applications and strategies can make use of the compute power of the enterprise GRID. Once the power of the corporate compute resource pool is addressed and registered, all compute intensive applications within the organization will have much greater flexibility and have greater potential for building innovation into their product or service designs. With GRID resource, applications can be better written to solve problems and tasks, rather than simply be written against the limitations of a piece of hardware or operating system.

Just as email had a major impact on the way we viewed business communications, GRID computing will have a similar effect on how we approach business planning. As employees, leaders, and professionals now is the time for us to start thinking with long term vision - don't think about winning petty battles within the organization - concentrate on winning the war. Your resources contribute to the success of the organization in winning the corporate and global economic wars.

(About the Author - John Savageau is a managing director at CRG-West, responsible for managing operations and architecture for several of the largest telecommunications interconnect facilities in the US, including One Wilshire in Los Angeles)


MORE RESOURCES:

A look at economic developments around the globe (AP)
AP - A look at economic developments and activity in major stock markets around the world Friday:
NY's AG isn't backing down from Wall Street probe (AP)

FILE- In this March 18, 2011 file photo, New York Attorney General Eric Schneiderman answers a a question during a news conference in his New York City office. Although shrugging off the “sheriff of Wall Street” title, Schneiderman stood firm against major banks when he rejected a settlement over the mortgage collapse a year ago, because it shielded them from future investigations (AP Photo)AP - New York Attorney General Eric Schneiderman, a lead investigator into the mortgage collapse that wobbled the U.S. economy, hasn't taken the title "Sheriff of Wall Street" that one of his predecessors rode all the way to the governor's mansion.



Summary Box: Commodities fall on Greece debt woes (AP)
AP - GREEK WOES: Commodity prices fell broadly as a plan to fix Greece's crippling debt crisis remained far from settled, renewing concerns about global economic growth.
Most commodity prices fall on Greece debt woes (AP)
AP - Commodity prices fell broadly Friday after a plan to fix Greece's crippling debt crisis suffered a setback, renewing concerns about global economic growth.
Bernanke urges action to heal housing markets (Reuters)
Reuters - Federal Reserve Chairman Ben Bernanke on Friday issued a call to action to restore U.S. housing markets, saying depressed house prices and sales are a serious drag on the economic recovery.
Obama call for manufacturing revival a tough goal (AP)
AP - President Barack Obama is making a strong election-year push for an economic revival "built on American manufacturing." But he faces an uphill slog, with little consensus even within his own party on how to do it.
Gov't on pace for $1T deficit despite January dip (AP)
AP - The federal deficit was lower through the first four months of the budget year than the same period last year. Still, the deficit is expected to top $1 trillion for the fourth year in a row, putting more pressure on Congress and President Barack Obama in an election year.
Bernanke: Weak housing has hurt consumer spending (AP)

U.S. Federal Reserve Chairman Ben Bernanke speaks about housing markets in transition at the International Builders' Show organized by the National Association of Homebuilders in Orlando, Florida February 10, 2012. REUTERS/David Manning (UNITED STATES - Tags: BUSINESS POLITICS REAL ESTATE)AP - Ben Bernanke says declines in home prices have forced many Americans to cut back sharply on spending and warns that the trend could continue to weigh on the economy for years.



January budget gap shrinks (Reuters)
Reuters - The monthly budget deficit narrowed to $27.4 billion in January from $49.8 billion in the same month a year earlier, partly because some benefit payments normally made in January were shifted to December, the Treasury Department said on Friday.
Anxiety over incomes hits consumer morale (Reuters)
Reuters - Americans felt worse about their personal finances in early February, but rising confidence in the labor market's prospects should help to support spending and the broader economy.
Romney appeals to U.S. business with harsh China talk (Reuters)
Reuters - Mitt Romney slammed China's "autocratic model" of capitalism in a speech to technology executives on Friday, keeping up attacks on the economic powerhouse days before a visit from a Chinese official expected to be the country's next leader.
Housing a "significant headwind" to recovery: Fed's Pianalto (Reuters)
Reuters - The housing market is holding back the broader economic recovery now that foreclosures have become "a national crisis," a top Federal Reserve official said on Friday.
Exclusive: Future of bank benchmark rate under review (Reuters)
Reuters - A global probe into whether banks colluded to set the interest rates at which they borrow money from each other has thrown into question the future of the benchmark they use to price financial products worth an estimated $360 trillion.
Bernanke urges action to heal U.S. housing markets (Reuters)

U.S. Federal Reserve Chairman Ben Bernanke speaks about housing markets in transition at the International Builders' Show organized by the National Association of Homebuilders in Orlando, Florida February 10, 2012. REUTERS/David Manning (UNITED STATES - Tags: BUSINESS POLITICS REAL ESTATE)Reuters - Federal Reserve Chairman Ben Bernanke on Friday issued a call to action to restore U.S. housing markets, saying depressed house prices and sales are a serious drag on the economic recovery.



Spain cuts firing costs in new labor reform (Reuters)
Reuters - Spain cut severance pay for workers on Friday and watered down collective bargaining rights, giving more power to employers as it attempts to kick start its moribund jobs market and slash Europe's highest unemployment rate.
Portugal watches Greek debt drama with foreboding (Reuters)
Reuters - Portugal's economy will shrink as much as Greece's this year, according to IMF projections. The two will have identical current account deficits and the red ink in Portugal's budget will be almost as deep as in Greece's.
Trade deficit widens to $48.8 billion in December (AP)

In this photo of Feb. 4, 2012, a cargo ship, owned by German shipping company Hapag-Lloyd, crosses New York Harbor. The U.S. trade deficit widened in December, reflecting a jump in imports of autos and industrial machinery. For the year, the deficit climbed to the highest level since 2008 as both exports and imports rose to all-time highs.  (AP Photo/Mark Lennihan)AP - Monthly U.S. exports to Europe grew in December, a hopeful sign after a steep decline the previous month. But, some economists remain concerned that the region's debt crisis will still weigh on the U.S. economy this year.



U.S. jobless rate projected to fall sharply (Reuters)
Reuters - Economists in a survey see the unemployment rate falling much faster this year than previously expected, an improvement in the jobs market that could help President Obama's re-election chances.
Consumer mood worsens in February on income worries (Reuters)
Reuters - Americans felt worse about their personal finances in early February, even as they saw a light at the end of the tunnel for the jobs market, a survey released on Friday showed.
Instant View: Consumer mood worsens in early February (Reuters)
Reuters - Americans turned less optimistic about the economy in early February on worries about falling income even as their outlook on the jobs market rose to a record high, a survey released on Friday showed.
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