Reaganism and Thatcherism: Damned Lies

They sold the US and the UK a handful of 'magic beans' an economic fantasy, based on greed and selfish monetarism and the participants were only too willing to believe in it, wear the mantle and sing the praises, until it went bad on them.

Exploiters exploited, consumers consumed, by their own self centred greed, how ironic!

Capitalism, Monetarism and Consumerism drives global warming, ecological exploitation, the destruction of habitats and cultural diversity and its other bi-product the imposition of overwhelming poverty, wherever it goes.

It is a predictable but fickle beast that positively imposes a minimum wage policy wherever it goes whilst threatening to withdraw employment entirely, all in the name of 'monetary profit' and gain. It is a simple inverse proportionate equation; a huge loss for many results in, or is equal to, a huge gain for very small group of the privileged few.

Reagan and Thatcher styled economics, was never intended to be the answer for sustaining the populus of the World, let's not keep making or defending this grave mistake, over and over again.

These people are not your friends, in any way. Simply ask yourself the question; 'Who gains from this?' and 'When I put my hand in my pocket and take it out again, what have I gained?' Just think about it.

(Image: Rex Features)

Headhunters Sniff Positive Change in the Air

Headhunters Sniff a Positive Change in the Stagnant Corporate Air.

Are you Ready to Catch a Wave?

Recruiters show a spike in confidence for the job market over the next few months but a dramatic improvement may be a lot further down the rocky road to recovery.

To gauge a headhunter's mood, look no further than the economy's health. They are closely linked. With prospects for financial fortunes improving, recruiters are growing more confident that companies will soon resume hiring.

The surge in optimism is sudden. ExecuNet, a networking forum for executives that conducts a monthly poll of executive recruiters, found in its just-released May survey that 57% of 143 respondents were confident or very confident that the executive employment market will improve in the next six months.

That was 16 points higher than in the April survey, and the second-highest monthly gain since ExecuNet launched the survey in May 2003. The biggest increase? That came way back in the survey's second month, coinciding with the easing of the previous economic downturn, when the confidence index shot up 20 points.

"Responses are similar to what we saw coming out of the last recession in the second quarter of 2003," said Mark Anderson, ExecuNet's president and chief economist, in a statement.

Word of Caution: Although headhunters' confidence is increasing, hiring levels are not moving, yet.

Measured Action for Tough Times

IT Consultants and solution providers are, like everyone else, vulnerable to the recession. However, a recent Market survey shows that IT Consultants and solution providers are preparing to weather the economic storm forecast for 2009. With a lot of good fortune and luck allied to smart planning and insight, they could be positioning themselves for growth in 2010.

US Dollars, GBP and Euros
The dawn of the Obama era in the USA and the infusion of hundreds of billions of dollars, pounds and Euros in stimulus funds are not enough to clear the economic storm clouds gathered over North America, UK and Europe.

Since the beginning of the New Year, the U.S. economy alone has shed nearly 600,000 jobs. Gross domestic product fell by 3.8 percent. And the forecast for the remainder of 2009 calls for sluggish or negative growth.

Consultants poised for 2009
The technology sector, with its IT Consultants and the solution provider community poised to withstand the recessionary pressures of the general economy. The 2009 Market survey of 200 North America IT Consultants and solution providers, reveals that solution providers are very cautiously optimistic about their business prospects in 2009. They fully expect a reduction of enquiries, sales, revenues and profitability. They’re cautious optimism means they are preparing for the worst while hoping for the best.

Weathering the storm
IT Consultants and solution providers are not taking the sluggish economy in their stride. While there is a natural inclination to retreat to a safe place and ride out the downturn, the Market survey report shows many consultants and solution providers are preparing to implement, aggressive business development, sales and market plans. In an effort to not only weather the recession but to power through it and position themselves for growth in 2010 and beyond.

Gross Revenues
Gross revenues from product and services sales increased for 46 percent of solution providers, while only 24 percent saw their top lines shrink. A near equal number of solution providers (45 percent) reported increases in their 2008 profits, while 25 percent said their profits declined.

Ordinarily, healthy revenue and profit increases would be welcomed news for solution providers. But participants in the Market survey were witnessing a phenomenon caused by the recession.

Customer spending down
Consultants and solution providers reported customers spending was down and their existing budgets reduced. This is in anticipation of not getting full funding in 2009 or in anticipation of end-of-the-year budget cuts. Business-technology customers, ranging from small businesses to large enterprises, are expected to continue investments in technologies critical to business operations. This will focus on smart applications and systems that directly reduce costs or innovations that open up new revenue opportunities.

Do not be fooled, they are certainly not freely opening up their checkbooks. IT Consultants and solution providers report that their customers are already cutting back on orders, delaying project implementations and canceling projects to save money.

2009 Forecast
The stated paradox above, is part of the reason why nearly one-half of consultants and solution providers expect their revenue to increase in 2009, while only 32 percent expect a decrease. The key indicator of how tough 2009 will be for solution providers is seen in the number that expect flat year-over-year revenues;

• 30% of solution providers said their 2008 revenue was relatively the same (plus or minus 5%) over 2007,
  
• 21% expect no change in year-over-year revenue in 2009.

• The clear shift to no change or declining revenue reflects longer sales cycles and customers not committing to engagements.

The survey paints a similar picture for profitability;

• 51 % of solution providers expect no change or a decline in their year-over year profits.
  
• 64 % believe their profits will slide by 15 percent or more this year.
• 55 % of optimistic solution providers expect their profits to increase by 15 percent or more.
  
• No solution provider participating in the Market survey, expected profits to sink by 100% or more. Perhaps trying not to think the unthinkable.
  

Consultants and solution providers dependent upon conventional hardware sales expect the largest decreases in revenue and profitability. Anticipating revenue decreases this year;

• 29% of white box/custom system dealers
  
• 27% of hardware resellers and
  
• 24% of general solution providers,
  

Topping the list of specialists anticipating net revenue increases.

• 67% Software resellers
  
• 60% Software-as-a-Service (SaaS) providers and agents
• 55% Systems Integrators
  

Additionally, solution providers say that they are seeing the greatest slow down in business, from small (less than 50 employees) and midsized businesses (50 to 250 employees).

Ring fence your customers
Consultants and solution providers recognize that they must adapt to the poor economic conditions, and many are executing strategic plans to bring themselves closer to their customers. Hopefully this will allow them to preserve and protect existing revenues sources while seeking new opportunities to tap into new revenue streams. Clearly everyone is becoming more defensive of their existing clients and therefore, the new revenue opportunities will be harder to find and even harder to win, possibly with lowered margins and ROI spread over longer periods.

Nearly one-half of consultants and solution providers surveyed for the Market say that their top business goal for 2009 is improving customer satisfaction and retaining existing customers. It’s much easier and more cost effective to expand sales within an existing customer than it is to acquire a new customer and build a relationship. The risk that you put all your eggs in one big basket that could, in itself, fall.

Customer retention not detention
Of the consultants and solution providers focused on customer satisfaction and retention, most anticipate their profits will remain flat or decrease. The same can be said for consultants and survey participants focused on increasing revenue, the second most popular business goal for the year. Are you being retained or detained by your customers and service providers? Discuss!

QoS versus Market Share
Consultants and solution providers who are focused primarily on improving quality of service (QoS), will have a higher expectation of profit erosion. Conversely, consultants and solution providers focused on increasing market share or profitability have higher expectation of improving profitability in 2009. This may not be the case, when taking into consideration the cost of sales.

Revenue Growth - greater expectations?
For revenue growth, 60 percent of consultants and solution providers are squarely set on simply acquiring and developing new customers. Another 30% are expanding their relationships with existing customers. Interestingly, solution providers are not looking to their peer communities for support during the recession. Only 13 percent of survey participants said they would form an alliance with their peers i.e. consultant and solution provider partners, or partner with other consultants to reach new markets and customers.

Together we stand and divided,
we may fall

Getting on top - Dominate your Credit Risk

Until recently, when debt became more expensive and harder to come by, companies generally had a blasé attitude toward managing their trade-credit risk. Most corporations, big and small, don't have credit risk procedures any more sophisticated than the sub prime lenders did. In which case you are flying in dangerous territory with your defenses down.

A simple tip but one that's been largely ignored until recently: Be more wary before extending credit to new customers. Make them prove their creditworthiness. Currently, companies take more a of shy unassuming approach to trade credit by quickly granting it to every new client that comes across their threshold. Once aboard they hope for the best and follow the client's payment performance over time.

Companies too often get into the habit of not asking for any financial information from their customers in favor of speeding up a much coveted deal. Suppliers have been doling out credit based on what little information may be available on their privately held clients, despite the fact that private firms have a higher rate of bad debt. Even after a credit account has been granted, the supplying company may shy away from asking for financial data because they don't want to offend a brand-new client. Clearly the banks have a part to play in all this because they too have been willing to extend credit lines far beyond reasonable doubt.

Companies should ask for customer and bank references up front. Although, that information may be biased and unreliable because of the struggling financial institutions. Will the bank and lenders be there in the long term for their customer? Are they going to provide financing or will they make a quick exit and leave the company with a liquidity shortfall, which may or may not cause the demise of the company? Are the financial institutes responsible for the ongoing viability of their clients, i.e. the corporate companies. What support and backup can they provide a struggling company when they themselves are in difficulty. These and many more, are all questions vendors need to ask themselves when looking over a customer's bank information.

Companies should request that all customers, new and old to fill out a one-page credit profile every year. The sheet should include the company's cash position and the most up-to-date contact information. A type of credit probe which may or may not provide the correct level of information in the right format, in a timely manner. This will lead to more overhead in the accountancy dept or with the business analysts, but if addressed properly, it may provide early warning of difficulties.

If there is any good news to be had during this economic downturn, it's that everyone is in the same boat. Your customers are asking their customers for more financial information. It's now become perfectly acceptable to ask about a client's financial status because everyone is being scrutinized by every supplier. Its a big global circle of accountants, checking each others assets.

If it's impractical to demand financial information up-front, then come up with a triggering number for when your company will demand it. A simple threshold or framework will suffice. If clients cross the established and agreed amount, then they must provide their trade creditors with financial statements to validate their credit. The type and level of the threshold can vary depending on client, industry, item value, uniqueness, development costs, credit exposure, etc. Its not a numerical value, its a way of thinking about and controlling your risk exposure.

Another way to improve your credit /risk management is to conduct a detailed assessment and calculate each customer's probability of default. With such precise knowledge you can price your services accordingly, and by showing your client the calculations, you can easily justify a premium rate. Cash has always been king and currently it is even more critical to companies health and financial welfare, but many companies have no idea who they're selling to, never mind who owns the company or their cash position. Its never been more critical to know your customer.

Moreover, suppliers can no longer rely on traditionally held views that big-name companies are safe from sudden and dire financial problems even if they don't have strong cash flow. Many of these companies have lived on extended credit lines for years and are not asset rich. Other companies can have negative cash flow and positive net worth. They're sitting on land or occupy buildings that no one's willing to buy. If their credit is pulled and they end up going bankrupt, the asset value won't cover the debts.

Experts also suggest sales and credit departments improve their communications between salespeople and the collections side. Your salespeople are trying to maintain the vendor /customer relationship at the same time as maximising their commission payments. This is a tightrope, and is a very dangerous situation for the company to ignore. It must be very, very tightly controlled. Don't allow salespeople to grant extended payment terms, without justification and authorisation, before checking in with their credit counterparts. Companies should use these negotiations to get more financial information out of their privately held clients and reprice future services if possible.

Moreover, salespeople may be able to offer the credit department more insight into a customer's financial situation. Therefore it is imperative that they have the influence, motivation and the time to actually get involved in credit and collections questions. Its a team effort and everyone better be on the team or the game is over.

Project failure starts at the begining

We are all familiar with countries, towns and destinations that are difficult to reach, either by road, rail or public transport and yet people exist there and thrive. It is not in another dimension or another planet, where predictable 'difficulties' are numerous e.g. expensive ad hoc rocket ship service, an atmosphere of sulphuric acid, temperature variations in the region of 'scorchingly off-the-scale', etc. No, our difficulties in reaching our earthly destinations are because we do not start from the correct location.

This is a lesson I learned when lost in Dublin and forced to ask for directions. It was made clear to me that to get to point B I should have started at point A and not the point that I was currently at, which was currently unknown and would henceforth be referred to as X. Thus, making the logic more mathematically predictive.

The start point and the end point, part of the defining structure of a project and thus lifting it away from the realms of a simple action or activity, are critical in the initiation and definition of the project and the associated project plan. You will never reach the end destination if the start is left to serendipitous happenstances.

• Plan the beginning of your project meticulously
• Involve as many of the stakeholders as possible
• Hold a workshop with all the allocated resources
• Seek out Subject Matter Experts (SMEs)
• Do your research, technical, business, historical, etc
  
• Assess the Risks (qualitative and quantitative) and
  
• Look where you are going

The dark matter of Projects failing

IT projects suffer from a similar force to that of the astronomically evasive 'dark matter'. A force that is not so much negative in its manifestation as it is in its effect, especially on other matter. It has an ability to occupy space without contributing anything, interacting with 'light matter' only to drain its energy and restrict its ability to move freely.

'Dark matter', and its ability to absorb and retain energy without contribution, is a universal anomaly for physicists. A puzzle yet to be solved. A question unanswered but not for project managers and team leaders. We know this effect and understand the consequences very well. It is a similar force to the one that will cause your project to fail. It is your greatest adversary. Its invisible. It can be detected but not controlled, without the right tools and level of experience.

Corporate Defense Domain

The Corporate Defense Domain is a convenient way of describing the sum total of numerous secure approaches, tools, processes, etc. that incorporates the entire environment security of an organisation, from end to end or perimeter to perimeter.

The concept of Corporate Defensive Domain is an aid to perception evolving from a vision of Physical Risk through IT Risk, Operational Risk to Governance, Compliance, Legal and Reputation Risks.

Corporate defense
Corporate security is purely defensive. There is no moral imperative that allows positive attacking action against threats and those that attempt to, or unequivocally, inflict damage on your organisation. Some but not all, of these attacks can be very determined and sophisticated because they are goverment funded and are either commercially or politically motivated. Most are just motivated individuals that can be classed as intellectual vandals.

As with all the good guys, you must work within the framework of the law and this only allows vigilance, defensive action, and possibly post-event retribution and compensation. The subsequent capture and imprisonment of a perpetrator may become a public spectacle. An apparent show of the success of your strategy and hopefully it will act as an example to others but in reality it is of limited effect and brings little solace to the organisation.

Showing your hand
There is also a view that public trials act as a learning curve for other attackers. The attacker creates an action on your perimeter and you display a measured reaction. Thus revealing some of your defensive strategy, processes and tools.

Security realms
There are many realms that exist in the land of security e.g. physical, electronic, virtual, etc. and there are many ways to look at and examine security. It can be viewed as a) a physical obstacle b) a process inflicted on reluctant personnel without explanation or c) an acceptable mindset that is instilled in the environment with the full involvement of the personnel. This latter approach should produce the best results, giving staff a sense of involvement, empathy and a real feeling for the potential consequences.

Secure personnel
It is critically important that your staff buy into securing the corporate domain because they are typically, the weakest link in the security of organisations.

Staff issues

• They are not so easily or reliably programmed,
  
• They don't always retain or apply knowledge appropriately,
• They are swayed and diverted by social engineering techniques,
• They have good and bad days,
  
• Their attention is inconsistent, etc.
• Their human!
  

Threats & Vulnerabilities
There are many ways to examine Threats and Vulnerabilities in an organisation e.g. by geographical location, business type, resources used, historical or political instability, etc. Do you know and understand what criteria and imperatives are being used to drive changes in your defenses? Are they appropriate, operationally maintainable or cost effective.

Analyse the Risk
Organisations are are driven to respond to threats and are compelled to adopt more and more complex defense strategies to address and defend their security needs. Security policies and strategies dictate that a full gambit of approaches should be adopted, from standard process implementation to strict and intricate application frameworks but this has an operational and business cost implication.

The questions that are not always being asked are;

• What is the real cost of defending your business?
  
• How much are you likely to lose?
  
• Where will the danger come from and in what form?
  
• How will it impact us?
  
• What is our response capability?
  
• What is the overall Risk profile?

Feal the fear and hold your ground
With the constant threat of intrusion and compromise, regular and detailed testing and re-examination of all your defenses are necessary but before you can realistically and effectively apply what you have learned, you need to conduct a detailed analysis and assessment of the Risks, the potential business impact and your response options .

7 Points to build stronger, more secure Corporate Defenses

• Create executive level authority and responsibility for Corporate Defense, policy and implementation
  
• Assess your strengths and weaknesses using mature Risk management methodology
• Examine the interdependencies between your tools, processes and defensive positions. Strengthen the perimeters and communications
  
• Map and review your Corporate Defense Domain strategy, continuously, in a structured and determined manner.
  
• Determine, test and examine areas of Convergence, for overlap and gaps. Establish strong boundary defenses and stringent hand-over criteria
  
• Develop a single hardened core entity, an authoritative cross functional discipline, incorporating Governance, Compliance and Risk
• Lock the perimeter gatesways, give the spare keys to your organisation to the central hardened core and prepare yourself for the next attack