Thursday, August 23, 2007

Why is Saying NO so difficult?

One of the toughest challenges of any I.T. department isn't installing that complicated system, or upgrading the network or integrating that new acquisition or even Sarbanes-Oxley compliance efforts.

It's saying No (or not yet) to enhancement requests. Setting an honest expectation.

Yet without clear, concise, easily understood expectations, our business community's default expectations are "Yes". They're waiting to hear the answer to "when?"

And so it goes. Development requests come into I.T. The B/A says we'll take a look at it. And it never goes any further or the project gets estimated and added to the never ending "list". Or worse yet, the B/A makes some sort of commitment (trying to be helpful) that has little chance of being met.

The requester is disappointed (or irate) and I.T.'s reputation takes yet another hit.

Who's at fault here?

Not the business person, who is trying to improve a business function or reduce costs or service customers better. To them, why wouldn't I.T. want to get their project done? Who can argue with serving customers better or improving costs?

Not necessarily the I.T. business analyst who's listening to the request and estimating the project. After all he/she rarely has any say in how projects get prioritized. They usually aren't in the position to give a Yes or No, yet that's what is expected of them.

The process is the problem.

Imagine for a moment that your company had no I.T. function. Let's say it's 100% outsourced. (Some of you may not have to use much imagination... but I digress). If you need a system enhancement, you'd have to detail the expected benefits of the enhancement, then get the projected estimated by your outsourcer, before you'd have a complete picture of the project complexity and estimated payback. If the investment was large enough, you'd likely have to go through a capital expense procedure, where you'd take the business case to your company controller or CFO and (s)he'd make the decision whether to proceed or not.

The clear advantage to putting the decision in the hands of the Finance leaders is that;

1. They can hold the business accountable for the business case benefits. This has several advantages. Armed with the expectation that the business will be held accountable for the benefits, helps eliminate spurious "nice to have" requests. This reduces requests and related business expenses estimating projects that will never be approved by the business.

2. CFO's can make system project decisions armed with the overall business priorities perspective. Something that I.T. could seldom do.

This process turns I.T. Projects into Business projects.

Which is what they should be.

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