Personal Productivity Technology: Fix of Fix?
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1 Personal Productivity Technology: Fix of Fix? Michael LoBue, MS, CAE President, LoBue & Majdalany Management Group August 19, 2006 Connecting Great Ideas and Great People
2 What We ll Cover Today Doing routine work faster, easier and more efficiently [because] it s one of the highest priorities for AMC owner! {Because it s NOT!} How to use specific productivity software because it s any kind of panacea for productivity or efficiency. {Because they re NOT!} The results of one specific study revealing the inner-most secrets of knowledge about personal productivity technology. {Because it doesn t exist!} 2
3 What We ll Cover Today The exposure to one AMC owner s investigation into how information technology can make a difference for his firm and his clients. {Because he thinks it matters.} Through lively discussion, ideas about command & control vs. coordinate & cultivate management styles and organizational models {Because not to would miss the point about IT uses and investments.} Notions about how productivity tools and IT investments in general are all about creating new value for clients and not about efficiencies {Because it s the point!} Discussed by Thomas W. Malone in The Future of Work I strongly recommend reading it! Yes, before the session. 3
4 A G EN D A Return on Investments for IT IT Use-Model Groupware What does all this mean? 4
5 Return on Investments for IT What do we want from our IT investments? What is reasonable to expect from our IT investments? 5
6 IT Total Cost of Ownership (TCO) Direct Costs Hardware & software: Initial purchase or lease costs (amortized), plus storage, network equipment, maintenance contracts, spare systems & annual costs of all supplies Operations: Labor costs for technical operations, specialized personnel such as database administrators, software maintenance staff, etc., plus any facilities costs for equipment rooms, furniture (e.g., racks) and network costs other than equipment. Administration: Finance, HR, administration, procurement, etc.; IT planning costs - but mostly training costs for IT and end user staff. Indirect Costs End user operations: Time to learn new systems, software, organizational process and work-flow changes due to technology - time spent being the IT champion who helps lesser capable colleagues beyond doing their own jobs. Downtime: Interruptions when things break or fail, regular maintenance, software upgrades and updates - how about SPAM! One PC/year > $5,000 One $200 printer can cost $1,000/year in maintenance & supplies! 6
7 SPAM - special case 60% - 80% of received is SPAM - agree or disagree? On average, how much time does each employee spend dealing with effects of SPAM? Productivity Loss Managing SPAM 95.00% % of 8 Hour Day 90.00% 85.00% 80.00% 75.00% 30 min 45 min 1 hr 1.25 hr 1.50hr Daily Time Spent on SPAM 7
8 Side-bar: Why is Productivity Important? Years to Double Productivity 40 Years to Double % 3% 4% 5% 6% 7% 8% % Annual Productivity Improvement 8
9 IT Costs for Associations Total Annual Operating Budgets for Tech by FTEs Not including staffing! $2,500, $2,000,000 $1,500,000 $1,000,000 $500, $ Median $2,000 $10,000 $25,000 $50,000 $200,000 $710,000 Mean $4,516 $15,453 $47,641 $82,621 $379,713 $2,144,206 $/FTE $2,250 $3,863 $5,955 $4,131 $5,841 More like $4,500 $7,600 $12,000 $8,200 $11,600 Total # associations responding = 372 [163 (Trades) (IMO)] Source: Policies and Procedures in Association Management Volume 2; 2006 ASAE; Table 5, pg 19 9
10 IT Environments & Training in Associations Network Environments used by Staff Does Org Provide Training Trades = 205 IMO = % Networked 100% 80% 60% 40% 20% 0% Trade IMO Trades = 205 IMO = 264 2/3rds Train 100% 50% 0% Trade IMO Client-Server Peer-Peer Not Networked Yes No Telecommuting Staff Training 80% Trades = 170 IMO = % 50% 40% 30% 20% 10% 0% Trade Allows IMO Provides Equip Trades = 201 IMO = 259 1/3rd On their own 70% 60% 50% 40% 30% 20% 10% 0% Trade IMO Staff Trainers External Online Staff "On-own" 10
11 IT Communications in Associations (excluding Voice & Fax) Approx % of Members with Active Accounts Technologies Used to Communicate 100% 100% 80% 60% 40% 20% 0% Trade IMO Mean 77% 72% 80% 60% 40% 20% 0% Members Non-Members 98% 60% List Servers 51% 16% Website 95% 72% Webcasting 23% 15% 11
12 IT by Functional Area Association Management Systems (22 apps used by 79%) Accounting/Dues/Billing (99% use 7 apps used by 81%) Desktop Publishing/Graphics (94% use 10 apps used by 89%) Analytics (99% use 98% use Excel) Website Development (79% use 10 apps used by 68%) Document/Text Editing (96% use Word) Other Areas: Database - general Web Maintenance E-Commerce Web Analytics Meeting Registration Surveys/Research Accounts and List Management 12
13 Recap IT-ROI IT is extensively used to manage associations IT used to do standard functions more efficiently IT used to lower cost this paper-less conference an example! (but at what costs?) But, is it being used to better understand member/client needs, the markets and professions they re in and how to prepare for the future? 13
14 A G E N D A Return on Investments for IT IT Use-Model Groupware What does all this mean? 14
15 Technology Use Model We tend to use information technology to facilitate workflows and processes designed in advance Knowledge (synthesis) Content (analysis) Data (processing) Anticipated Change Henry Ford first marketed the Model A you can have any color you like, as long as it s black When you have a hammer, everything looks like a nail (old saying) Time 15
16 Different models The Course: European navigators began with a plan - a course - which was charted according to certain universal principles, and carries out his voyage by relating to his every move to that plan. The objective is to remain on course. The Objective: The Trukese navigator begins with an objective rather than a plan. He sets off toward the objective and responds to conditions as they arise in an ad hoc fashion. His effort is directed to doing whatever is necessary to reach the objective. Orlikowski, W.J., Hofman, J.D. An Improvisational Model of Change Management: The Case of Groupware Technologies, Sloan Management Review, Winter 1997; (quoting Lucy Suchman) pg 2 16
17 Improvisational Model of Management Two major assumptions differentiate IMM from traditional models of management Changes associated with technology implementations constitute an ongoing process rather than an event with an end point The various technological and organizational changes made during the ongoing process cannot, by definition, all be anticipated ahead of time. More processing may be insufficient to meet business goals. An Improvisational Model for Change Management ; Orlikowski, Wanda J. and Hofman, J. Debra; 1997, pg. 4; MIT; 17
18 Another model Command & Control vs. Coordinate and Cultivate Corporate hierarchies (Centralized) Networks (Decentralized) Emphasis on predictability under stable and controllable conditions Emphasis on right outcomes under extremely unstable and highly uncontrollable conditions Diagrams modeled after Figure 3-1, page 28 in The Future of Work; by Thomas W. Malone; Boston, MA: Harvard Business School Publishing,
19 Coordinate-and-Cultivate Definitions : Coordinate: is to organize work so that good things happen, whether you re in control or not. Cultivate: is to bring out the best in people through the right combination of controlling and letting go. The Future of Work; by Thomas W. Malone; Boston, MA: Harvard Business School Publishing, 2004, pg
20 The Paradox of Standards Rigid standards in the right parts of a system can enable much more flexibility and decentralization in other parts of the system. Examples of general standards: Internet (TCP/IP) Traffic Laws & conventions FASB others? Examples of association service standards: Organization s bylaws & policies IRS rules & 990 filings in particular CAE AMC accreditation AMCinstitute member eligibility req s others? The Future of Work; by Thomas W. Malone; Boston, MA: Harvard Business School Publishing, 2004 pg
21 Revisit Improvisational Management Three types of changes: Anticipated: Planned ahead of time and occur as intended Emergent: Arise spontaneously out of local innovation and which are not originally anticipated or intended Opportunity-based: Not anticipated ahead of time but are introduced purposefully and intentionally in response to unexpected opportunity, breakdown or event Examples: Implementation of software to facilitate increased and quicker communications among members Implementation of network as an informal grapevine disseminating rumors throughout the organization Retooling applications, perhaps interworking applications, to produce new anticipated processes based on what was learned during an emergent change experience An Improvisational Model for Change Management ; Orlikowski, Wanda J. and Hofman, J. Debra; 1997, pg. 4; MIT; ccswp191.html 21
22 Improvisational Map Knowledge (synthesis) Opportunity-Based Change Content (analysis) Data (processing) Anticipated Change Emergent Change Anticipated Change An Improvisational Model for Change Management ; Orlikowski, Wanda J. and Hofman, J. Debra; 1997, modeled on Figure#1; MIT; 22
23 Flows a case study Test Ops Marketing & Sales Fin/CIS/Admin The E-Flow Audit: An Evaluation of Flow Within and Outisde a High-Tech Firm ; Nick Bontis, Michael Fearon, Marissa Hishon; Working Paper No. 101; January 2001; McMaster University Silicon Ops What might this map say about knowledge flows? What would such a map look like for an assoc. or an AMC? 23
24 A G E N D A Return on Investments for IT IT Use-Model Groupware Practical Options 24
25 GroupWare Definitions: computer-based systems that support groups of people engaged in a common task (or goal) and that provide an interface to a shared environment Wikipedia Groupware is any type of software designed for groups and for communication - aka: computer-supported cooperative work (CSCW) Usability First ( Improved definition? Software tools that support anticipated, emergent and opportunity-based changes within work-groups. 25
26 Examples of GroupWare Apps Asynchronous Groupware Newsgroups and mailing lists Workflow systems Hypertext Group calendars Collaborative writing systems Blogs Synchronous or Realtime Groupware Shared whiteboards Video Communications Chat systems Decision support systems Multi-player games Wikis Source: 26
27 A G E N D A Return on Investments for IT IT Use-Model Groupware What does all this mean? 27
28 What does all this mean? Defining goals of the process Giving them the right incentives Attracting capable people (staff and members) Providing (or helping them create) the activity maps or other infrastructure they need to manage their interactions The Future of Work; by Thomas W. Malone; Boston, MA: Harvard Business School Publishing, 2004 pg
29 What s important to us Provide staff with outcome oriented goals Place no arbitrary restrictions on IT use Support requests for training with minimum ties to job functions Support telecommuting in practice and $ s Receive input from staff on IT applications/uses 29
30 General Information Slide Here s some suggested readings that I may refer to during the presentation: The Future of Work ; by Thomas W. Malone; HBS Press 2004 Malone, along with colleagues and grad students at MIT s Sloan School of Management, have conducted many studies on the impact of technology on organizational structures. The premise of this book is that the cost of information has been reduced to the point where, like it or not, organizations are managing themselves differently he explores those differences and offers recommendations. A Whole New Mind ; by Daniel Pink; Riverhead Books 2005 Not really ground-breaking in terms of new information or discoveries, but a thought provoking presentation of many common notions about how work is changing. I found it useful as a business owner, as well as a parent. What Customers Want ; by Anthony W. Ulwick; McGraw Hill 2005 I didn t expect to go beyond the first couple of chapters; I didn t think I could stand the cliché. I couldn t put it down! He demonstrates in a compelling way how aimless so much marketing research has been for decades and demonstrates very clearly how to ask the right questions to understand how to produce real value for customers/clients. 30
31 Thanks To Our Sponsors Michael Majdalany, my business partner for the time Ginger, Cara & Ryan, my wife & children for their patience & tolerance 31
32 Wrap Up Slide Michael LoBue, CAE President, LoBue & Majdalany Mgmt. Group Phone: Websites: Connecting Great Ideas and Great People
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