Wednesday, February 18, 2009

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

Monday, February 16, 2009

Communications - mutual respect

The primary key to motivating another person is trying to understand their perceptions and manage their expectations.

The primary driver for men is normally status and respect, their standing in the community. This is not only a defensive action but can also be an offensive action. A man's status and respect is most beneficial to him when it grows. A more defensive reaction is triggered when it is seemingly being assailed or reduced.

Initial man-to-man meetings can result in an immediate confrontation and checking of status and esteem, starting with "What is your job title?" and followed by "What 'things' have you got?" e.g. cars, houses, women, etc. The answers are rated, by both sides in the comparative status stakes and from this each person's position in the 'pecking' order is established and a resulting hierarchy is established and will remain, until a change in status is achieved by either party. This can be done openly and aggressively or subversive and defensively. Therefore, it is in both men's interest to check their status, often. Discuss!

A US study of 400 hundred men proposes; 74% said that they would prefer to be alone and unattached, rather than be disrespected and made to feel inadequate (married??). Men perceive criticism as contempt and 81.5% of the sample group, felt disrespected when in conflict with their wife or partner. So, 85% of men withdraw into silence during a conflict. Possibly because he is unfamiliar with the feelings he is experiencing and /or in an attempt to keep or gain control of himself and his emotions. It is an internal fight, an attempt to stay calm so he doesn't break out of his shell and overreact, breaching social norms or worse. He may see it as the honourable and respectable thing to do but his wife or partner will only feel shut out and rejected by this. So the conflict continues, until it reaches a crisis point.

On the other side, it is said that the primary drive and deepest value for women is acceptance and affection. They communicate freely and verbalise openly. They will opt to do this with other women to resolve a conflict, which normally leads to reconciliation or at least mutual understanding. This is not what men do and it is naive to expect it.

The initial meeting between women will be an exchange of feelings and expressions, to ascertain what this person is like and can we bond. The need to be accepted and embraced as part of a supportive 'family' group or 'pack' is very important. Not so with men, they are vying to 'lead' or 'dominate' the 'pack' and be the top dog because it is residual in their ancient genes to do so.

Most women are endowed with the need to be supportive people, teachers or instructors particularly if they have children. They quickly adopt the role of teachers and therefore critics of their husbands, partly without intending to or without realising it. They just simply want to put him on the 'right' path to building a better, more cohesive pack. Their motives may be pure but their tactics often wound the man. Women want their partners to be inclusive, to be close, to open up, to talk, etc. Most importantly, he should be willing and able to listen and share, not necessarily trying to "fix" her every concern or issue, except loose floor boards, faulty lights and other household fittings. In these cases a definitive list often helps.

Men communicate on a competitive level, by sharing experiences, sports or other physical activities. This is normally done on neutral round, without threatening direct eye contact and by just sitting with each other side-by-side, in a guarded position, backs to the wall and facing outward. To gauge their feelings and reactions, women will share experiences openly, in a non-competitive manner and by talking about them to each other, sitting face-to-face, often touching and often in a group or inclusive circle.

Quick tips

To Communicate with the men:
1. Regularly tell your male employees what you appreciate and admire about them - be aware of, and build on their self esteem
2. Stop instructing and correcting and give them your trust and respect - empower them, give them a chance to succeed and the support that will prevent them failing
3. Take time to spend time with them and get to know 'who' they are and what motivates them - no threatening eye contact and no competitive comparisons, don't judge people

Communicate with the women:
1. Make time to talk to them face-to-face - 'include' them in your day, allow them to include you
2. Listen to their problems and don't be too quick to jump in and try to "fix" what is wrong - share their concerns and validate their feelings, be supportive and open
3. Regularly tell your women employees what you appreciate and admire about them - build their self esteem but guard their open-hearted-ness, it is a gift bestowed and not to be used or abused.

Communicate - Single minded isolation and solitude is no way to protect your status or self respect. It just restricts it.

Share your thoughts and feelings and support others who wish to do the same. Build open cohesive teams, not barriers.

Tuesday, February 10, 2009

Use the Power of persuasion

Are you hunting for a new job or the next step up the ladder? Well, it may come as a small surprise to you to hear that one of your main objective is simply to be persuasive.

What are the most effective approaches?
  • These days networking is sited as the most effective way of finding a new job. So firstly, you need to build your personal network and then persuade the loyal members of your network to introduce you to people who might connect you with someone who knows someone ..........who has a suitable opening for you to fill.
  • Secondly, you need to get your CV read and acknowledged. So you need to persuade HR professionals and recruiters to not just read and discard résumé but to consume, digest and ruminate over it.
  • Having got as far as the HR dept, you need to persuade the hiring managers that you're the perfect candidate for their organisations. The missing link they have been seeking, even if they didn't realise it themselves

Be convincing - Some people are easier to convince in your job search than others. Getting friends and colleagues to arrange introductions for you doesn't require much persuasive effort because they know you and some may even like you or owe you money. Therefore, they're willing to play their part on your behalf. After all if the circumstances were reversed, you would do the same for them. Your powers of persuasion over your friends should stem from your mutual friendship, natural charm, credibility and likeability, not from your rhetorical prowess or physical strength.

The Gatekeeper - The hiring manager, knows nothing about you, apart from the fact that he has seen your name in a pile of CVs that need to be filtered. He has to create a short list of candidates fit for interviewing and you must be on it. How are you going to stand out from the crowd and rise loftily above the other candidates. You have to think better and work harder to convince them that you're worthy of their time. In such situations, job seekers need the advantages gained from fully understanding the fundamentals of persuasion.

Easy as ABC
Effective persuasion combines equal parts communication and observation. It hinges on having good people skills;
  1. being able to read people,
  2. being a good listener and
  3. being empathetic.

You need to be a keen observer of the person you're trying to persuade. Otherwise how can you match the tone and language you use in conversation to the other person's tone and language. Watch how the other person reacts to what you are proposing, either physically, through their facial expressions and body language, or in their tone of voice. If you notice a negative reaction, or discomfort, you should be alerted and quickly change or slightly adjust your approach.

Under your Influence - To be an effective influencer, you also need to be likeable, outwardly open and trustworthy. It doesn't matter whether you're selling an idea, a service or a product, people tend to buy from people. If I like you, I will listen to you. If I don't like you or your message, I won't listen to you. Getting someone to listen to you is the first stage of persuasion.

Persuasion isn't inherently difficult. To do it right, people just need to focus on listening to the person they're trying to persuade and adjusting their communication accordingly.

Whether you're seeking a new job, clinging to an existing one or out to climb higher, persuading people of your value is going to be your key to success, especially during times of low market confidence and recession.

How do you persuade others without appearing pushy and what about the dangers of steamrolling people into submission. The Hard Sell!

What is one of the biggest mistakes you can make when trying to influence or persuade others?

One of the worst crimes you can commit is the lack of true or active listening. Far too many people only half-listen to other people who are speaking and the same people are equally unlikely to closely observe people either. We sentient humans have the capacity to think at four or five times the rate of someone who's speaking. Consequently, we can often listen badly because we're too busy looking ahead and formulating our responses while the other person is still speaking, or we're thinking about something else entirely, like shopping or the size of the other person's nose. We fail to pick up clues that indicate what the other person is really saying or thinking because we are not even listening.

Body Language

Observing body language is the closest we can come to mind-reading. If you make a statement, and that statement produces a grimace or a shift in posture of the other person, their body is telling you that something you said doesn't gel with them. It's a clue for you to change your tact or to inquire what it is that's bothering that person.

Negative pressure

Some individuals lack the level of people skills that are needed to persuade others. However, they can and are able to sway and influence their co-workers by taking a dominant posture. This is observeable, because they always have a response to a point or counterpoint. Their constant pressure exhaust others' patience and endurance, leading to submission. It is more like verbal tennis or squash than persuasion.

Is there anything wrong with this sporty method of persuasion if it accomplishes the persuader's goals?

Clealry. beating someone into submission is not good practice. It is not what we understand to be true persuasion. A truly persuasive person will not leave you in an exhausted state. The ultimate goal of effective persuasion, is that the relationship between the two people hasn't suffered, even after one has changed the other person's belief or behavior. There should be no 'losers' as there are in competitive sports.

Certain personality types are better at persuasion than others?

Extroverted people tend to be more persuasive than people who are prone to introversion. Extroverts are often in people facing jobs, such as sales or advertising, where they have to influence or persuade people to buy a product, take some kind of action or adopt a different lifestyle goal.

Introverted People will take jobs that are less people-focused and more facts and figures focused. They are the back-room people, often evry talented but lacking the self confidence that their knowledge should bring. Therefore, they have less experience of dealing with people than extroverts. Consequently, they don't develop the people skills that extroverts develop. It is a vicious circle that is not so easily broken.

Introverts can be good persuaders, when dealing with other introverts; people of their own type. Introverts have more difficulty in persuading extroverts because extroverts tend to speak louder and faster than introverts. Whereas, the introverts tend to conduct their interactions in a much slower manner.

Extroverts have similar difficulty in trying to persuade introverts. When you look at workplace disputes, some can be attributed to personality clashes between introverts and extroverts.

Logical arguments besides, just do it!

May I also postulate a theory that the extoverts are more emotionally open and accepting of emotive reasons for doing something. Whereas, extroverts may be less willing to expose their feelings to scrutiny and therefore take the safer option of discussions based on known facts. It is easier to dis-arm an introvert using facts and logic than it is an extravert. Discuss!

Is there a difference between persuasion and manipulation? Some people don't like the idea of having to persuade or influence others. It strikes them as unseemly, pushy or manipulative.

Persuasion is essentially about changing someone's perception, questioning their assumptions. You are trying to alter their beliefs and behaviour. Persuasion is really about moving someone from point A to point B.

Manipulation implies coercion. When we're talking about persuasion, you are seeking a win-win scenario, where both parties are happy. Manipulation implies that only one party is satisfied and the other is out-manouvred.

It's all about the approach

Manipulation is often synonymous with some kind of threat: If you don't do this, this will happen. Persuasion is a meeting of minds: You are persuading another to come around to your point of view. Ideally, no one gets hurt. You have simply changed a person's perception, not by coercion or threat.

It is better to have cross-pollination than a cross Polynesian

(old Hawaii proverb, alledgely)

Saturday, February 7, 2009

Looking for another War - Try Project Management

How can you leave the battlefield with your dignity, honour and /or pride in tact? I am not so sure that its possible without losing your life to the struggle. Dead heroes are greatly honoured, when flown home, away from the conflict. Pity the one's that remain in the danger zone and have to keep on struggling.

What are your choices in this war? Honourable or dishonourable discharge, medical discharge (physical or psychological wounding), desertion or death. Some of these categories may overlap but from this list you can deduce that you have only about a 1 in 5 chance of a positive result. Not good odds.

How can a positive outcome be achieved?
  • You keep your head down,
  • Avoid the more serious, career-stopping, fighting,
  • Always obey the last command,
  • Never be the first to do anything,
  • Protect only yourself but
  • Run with the crowd, staying away from the perimeter and if at all possible,
  • Hire a dispensible contractor or consultant to do the dangerous stuff and
  • Stick to developing Strategy and Policy!We're right behind you men!

If you can't stand the heat, get out of the PM business!

Tuesday, February 3, 2009

PM for Network Professional

Good Timing is the key to Good Project success!
Professionals know what they know and network professionals are typically well-versed in the technical aspects of networking: protocols, router and switch configuration, server deployment and management, and so on.

Conversely, we don't always know what we don't know and our colleagues, the network pros, are rarely trained on how to manage projects. Fortunately, most of the problems that networkers face in projects can be addressed and mitigated against using standard project management methodologies and techniques.

Consider the effect of some Probability and a little influence from Evolutionary learning can have on your projects. If you are not proficient in something but do it often and long enough and are determined enough, sooner or later you will start to have a greater degree of success or a lesser degree of failure. Design and install networks long enough, and you'll be sure to have some of those projects go awry due to predictable, 'unforeseen' 'surprises'. Two words that you do not want to use in your monthly Project Progress Report. Two words that clearly depict the reasons why you should be applying Project and Risk management methodologies.

....and then they put the phone lines in!

Sometimes the infrastructure you need, such as power in a communications room, is not ready when you need to install an Ethernet switch. Other times, your network equipment vendor may seem to be perpetually on "back order" with the one module you need. Or perhaps it's the all-too-familiar "scope creep" when users decide they need greater wireless coverage than they asked for at the beginning of the project, without increasing costs of course.

Managing network projects is not an exercise in fortune telling, far from it. When analysed the core components for network projects are just like any other project, IT or otherwise: There is an objective, a time line, a budget and expectations of those who will benefit from the network once it is completed.

Professional project managers command good salaries because they understand these processes. Executives know that certified project managers are less apt to have projects run away from them. Attaining project management certifications such as the Project Management Institute's Project Management Professional (PMP) could be just as valuable to you as a network professional as a Cisco Certified Internetwork Expert or a Microsoft Certified Systems Engineer but you don't have to earn the full PMP certification to reap some benefits.

Applying a few simple project management tips will quickly earn you a reputation for delivering network projects on time and within budget and this is the sort of reputation that opens doors.

Quick Fix is leading but .............!


Triple constraints; I once saw the following on the wall of a drive-in oil-change service: "You can have it done cheap, fast or right; pick two." This is true of all projects, and it illustrates the so-called "triple constraints" rule: projects are subject to cost, schedule and performance parameters. Changing one will affect at least one of the remaining two. e.g. when installing a network for a local bank branch office to allow for Internet access and e-mail. The project includes configuring a Microsoft Exchange server and installing a virtual private network firewall for security. You included labor in your project schedule and quote to ensure that the project is done in two months, as requested.

One week into the project, the bank announces acceleration in plans, the office network needs to be done in three weeks instead of two months.Your staff is already fully devoted to this and other projects. You can't cut out functionality because the office still requires all of the network connectivity and e-mail functionality. What can you do?

The only way to accommodate is to add more staff, either by paying overtime to your employees or subcontracting another IT firm. Either way, the cost will go up, yet the bank will likely baulk at the new cost. At that point, armed with the understanding of the "triple constraints" principle, you as a network pro knowledgeable in project management concepts can calmly explain why the request to change time will increase the overall network project cost.

......there be monsters here!
Project charter and scope; To reduce the likelihood of the network project growing uncontrollably, make sure that everyone understands the project deliverables, what the network will provide, how long it will take and at what cost. Your key constituencies here are the project sponsor and the network administrator.

By following project management methodologies, this can be accomplished by starting from the general (project charter) and migrating to specifics (project scope).

For network projects, the project charter could be simply "provide network connections for the new Shelbyville Bank and Trust building at 3 Main Street." Details including the number of connections, security protections needed and services desired are best left to the project scope. The scope simply supports the goals defined in the charter while providing more details; it is not a complete network engineering plan in itself.

You can create an initial cost estimate for the project from the scope. When the scope is broad or when there is only a charter, precise estimates are not possible.

A good option, is to take a network project of comparable scope that you worked on previously and use that as a basis for the estimate. It's also wise to not give a single figure estimate but rather a range, say maybe 50 percent on either side of the estimate derived from historical knowledge. As the scope is more clearly defined, refine the cost estimate by changing the midpoint as appropriate and reducing the range size.

Project schedule; Once scope is known, a project schedule should be determined. You'll already know the two most important project points: the beginning,following soon after the project scope is approved and the end, when the network is in place as requested by the sponsor. It's up to you to fill in the blanks.

Here's where a project management software package such as Microsoft Project really comes in handy. It can tie all aspects of the project together by providing a relatively easy way to create the plan for the network installation. Setting up the project plan can take some time at the beginning, but it will pay dividends many times over the course of the network project.

When planning network projects, break the project into the following six phases:

  • Information gathering—scope, existing infrastructure
  • Purchasing decisions—which switches, routers, firewalls, servers and so on are needed
  • Ordering equipment
  • Configuring and installing the servers and network equipment, and testing connectivity and functionality
  • Customer acceptance
  • Documentation

However, you decide to manage your network project, breaking it into smaller miniprojects makes the overall project more manageable. Suppose you know from experience that you generally receive network equipment from your supplier four weeks from order. Furthermore, you know that it typically takes two weeks to configure and burn in the equipment and another two weeks to install and test. So, start from the end of project date and count backward eight weeks; that then becomes your milestone date for ordering the equipment.

Scope creep. Performance constraints can also change, and in networking, they are usually on the side of more functionality, not less. Scope creep is a change in project requirements after the project has been planned and is under way.

A common example of scope creep that every network professional I know has experienced, is when the customer decides he needs more network capacity (number of jacks) than what you planned for at the beginning of the project. I like to inform customers upfront about the magic number: 24. Many vendor enterprise workgroup switches have a minimum of 24 Ethernet ports (some allow 48). Pass the magic number, or a multiple thereof, and expect the project's cost to increase (refer back to the "triple constraints" rule).

Of course, changing the number of connections does not just affect network electronics costs. Additional cable drops and possibly patch panels for terminations may be needed. An increase in electronics (switches or servers) may require heftier uninterruptible power supplies and may increase heat generation, forcing an upgrade of the HVAC design of the communications room or data center. It's clear to see that expanding the project requirements increases its cost, which is a problem when budgets are limited and fixed.

These problems exist because all involved with the project; the sponsor, network administrators and the other stakeholders (end users, equipment vendors, cabling contractors, customers), assumed that everyone was in agreement at the beginning of the project. But this was not the case. When all parties agree on and understand the scope at the beginning of the project, it is less likely that scope creep will occur.

Finally, should the scope still need to change, simply create a new cost estimate and timeline to accommodate the scope modification. Changes are not necessarily all bad, as long as all involved understand the effects that any changes may have.

Closing out a project. Once the network infrastructure is completed, there are still three major tasks to accomplish before the project can be closed. The first is rather obvious, ensuring the network functions as the customer intended. The customer should perform as many business-related tasks as possible to test the infrastructure and formally sign off accepting the project when complete. The latter will prevent end-of-project scope creep as well as provide a milestone for you to close the chapter on this project.

The second job, too often neglected, is to fully document the network. Remember, one of the goals when the project scope was created was to ensure the manageability and supportability of the network. Network drawings, router configurations, circuit numbers, server disk partition information, IP address assignment—anything and everything that was pertinent to the successful completion of this project should be documented and stored where it can be easily retrieved.

Finally, network projects rarely go exactly to plan, and sometimes surprises occur that could really not have been foretold. A postproject review, particularly of what went wrong, will help prevent the same mistakes from happening on a future project. I recall one network installation in which a concrete slab was poured before conduits were installed, necessitating cutting the slab to install the conduits. The lesson learned was to include regular on-site network infrastructure inspection dates as tasks in the network project plan.

For more information; You don't have to be a certified project management professional to take advantage of project management techniques to aid in your network projects - but it helps!

There are numerous Internet resources related to project management, including the following:
The Project Management Institute is the source of the Project Management Professional as well as other certifications. In addition, Prince2 is the preferred project management methodology and certifications in Europe, particularly in the U.K.

Stop your IT Projects getting canned

To weather the current economic maelstrom, enterprises are not only reducing head count but also are cutting back on ambitious or long-term projects in IT. Knowing how best to keep your IT project in the pipeline could mean taking a cue from those best versed in achieving project approval: Project and risk management business consultants.

Companies are cutting back significantly this year. They're under more than usual pressure to optimize every dollar, to either stop the bleeding or start the recovery. The key to retaining business is to build /re-enforce customer loyalty. This is demonstrating that continuing with your current initiatives should not only cut their costs but also help generate additional revenue.

What's true for consultants is equally true for IT managers looking to kick-start an internal project or to keep their project funding flowing. Those who are best at proving the value of their projects will win. And when it comes to uncertain times, keeping your project off the chopping block can end up saving your future and enhancing your career. There are many ways to do this and I would like to suggest a few.

Benjamin Disraeli
Benjamin Disraeli, is reputed to have said that there are three kinds of lies: lies, damn lies, and TCO/ROI calculations for IT projects.

Clearly, no professional right-minded company will pour money into IT without a strong business case. There has to be a payback and that final payback is that the business will get something beneficial in return. Before you can be a part of this, you will have to address the issue of choosing the right metrics and presenting them well.

Calculating the true return on investment goes beyond demonstrating cost reduction or bottom-line enhancement. Those days are gone. Today's executives are no longer likely to let simplistic metrics pull the wool over their eyes, after all, presenting statistics and compiling business cases is part of their job too. You have to provide something they can sell on to their people.

ROI dismissals
As we move deeper into belt-tightening, we are seeing more and more ROI calculations being dismissed. Most ROI calculations from vendors are flawed toward magical and large returns, and most calculations from users are too simplistic and unreliable. Bottom line: accountants don't believe them and cannot use them anymore.

Though numbers can't be rejected entirely, the kind of numbers you use should vary depending on the ultimate goals of the project. Despite being a great decision-making tool, ROI is often a misleading indicator for deciding whether a project should be pursued or not.

Case Studies Testimonials
Reliable case studies showing how other organisations implemented similar projects successfully and achieved positive results, may have more credibility with cynical management teams rather than simple ROI projections. All you have to do is find the appropriate cases.

Hard or Soft?
If the project aims to reduce head count, inventory, or transaction costs, so-called hard ROI numbers may be sufficient but for projects with less measurable aims, e.g. improving the business environment or coping with service provision changes in the competitive landscape, soft ROI, e.g. the increase in growth potential or business value as a result of improved relationships, comes into play.

Thus, positively demonstrating the beneficial value of your project can prove tricky, but if you focus on added and hidden value in these areas and make a strong case, you will significantly improve the likelihood that your IT project doesn't get canned.

Helicopter views
But don't focus too narrowly on your project's niche lest you lose sight of the big picture.
IT managers always need to step back and look at the impact their project could have on the entire organisation. You need to look at the cost of lost opportunities. What are we not going to be able to do, in terms of people, hardware, software, training and other monetary issues, all because we took on this project?

Will we be able to do more of what we do well or do what we do more effectively? Will this give the company, service or product a competitive edge in the marketplace? It can't just be a cool thing to do anymore.

Business needs direct IT
The true business need meets the true ROI. If the business has asked IT for a helping hand in a project, that should be enough. If you're doing an IT project that is either not driven by the business or does not have direct bottom-line financial impact to the company, you should not be doing the project in the first place. Would you have the business or IT shop do an ROI on something as basic as an e-mail server? No one would tell you that because there is no ROI, therefore we don't need it. The business need bypasses the requirement for IT to sell an ROI back to those who requested it in the first place.

Customer loyalty
Building and re-enforcing customer satisfaction and loyalty is paramount in troubled times. Despite the cost, executives will approve high risk investments because the cost of not doing the project in terms of dissatisfied and lost customers, can be far greater than the addition of new IT capabilities. Projects that reduce customer retention costs or increase the efficiency of marketing campaigns are more likely to get a green light.

Making it real
Even the most ruthless, cost-slashing IT project can die a swift death if it's pitched in language your accountant can't understand. Be aware that everybody talks and thinks about TCO and ROI just a little differently, depending on their view. It may help to manage the differences in understanding by the creation of a glossary or terms definition, distributed to the key executives.

Language
As the PM, you are the communicator and you need to have a sound understanding of whatever language your company works in. Do they use internal rate of return, payback period, time to value? Sometimes business leaders don't always sync up to the value language of the company. If capital is involved, you need to understand the process your finance department uses to approve the budget and get it into the language they speak.

Keeping it real
Business case assumptions must be thoughtful and clearly supported in terms an accountant will understand. Include metrics on power usage, maintenance contracts, and head-count savings. These often can't clearly be seen until the next fiscal year. Accountants crave short term gains and cost-control drivers that help manage long-term planning.

If you can show payback for an IT investment over 18 months or less, even better. Accountants love to recover the cost of expensive volatile technical assets before they're fully depreciated. They know the rapid rate of obsolescence in high tech toys, the lock-in tactics and the long licensing traps.

Don't stick your neck out
Embrace Optimism when you can. All projects rely on assumptions and the associated risks. The bigger the project, the bigger the risks. The key to getting your project approved is simply to do your homework. Study, analyse and assess the risks rather than assuming the best and being surprised by the worst.

Positive risk management
Planning for a positive outcome needs implementing better risk management, plus the provision of accurate financials, supported by proven program management methodologies and earned value. Also, you will gain more oversight and control with smaller and more frequent milestones.

It's better to be transparent and realistic about everything but base your budget contingencies on sound risk management analysis and assessment. You should never presume to receive 100 percent of a project's costs initially when you don't know 100 percent of the project requirements. Manage the risks and issues as you go and adjust your expenditure according to your project plan, risk management actions and develop a positive outlook in the team. Look for positive risks; opportunities and assess them as you would a negative risk, fully.

Building a project
PMs and IT managers will find it more palatable to take a staged or phased approach when pushing ambitious projects, one that relies on shorter, clearer milestones with conditional metrics tied to future funding. If you cannot get funding for the whole project because of skepticism of deliverability or payback, ask for phased funding. Each phase can have a checkpoint where progress is measured and funding for the next phase is approved or denied. If the business isn't happy with progress or results, there is much less risk.

Messy eaters
Try scaling back and down to move forward. Keeping your project off the pig swill scrap heap may mean settling for a digestible piece of the pie instead of the whole thing. That way you don't kill the chef and you can always go back for more later.

Even a broken clock is correct twice a day!

Dirty Laundry - leaking Security

Oh what a tangled web....
Your security providers cannot, and will not, tell you the whole truth about their security business because security is a state of mind. An illusion based on perception and relativity.

We accept the need for security service providers to specialise in the protection of our functioning environments and see their task as preventing or reducing unacceptable risk. You would be very naive to think they do this for altruistic reasons. The goal of the security market is to make money and they are doing very well, thank you.

As with all profit focused companies; 1) Security companies specialise in niche markets and have varying degrees of success in these markets 2) There are universal weaknesses in the structure that are not being addressed because;
  • the technology or algorithms are not sophisticated enough, yet
  • the market won't pay the price in restricted access, additional filters /controls that slow throughput and diminish transfer speeds
  • they are chasing a shape-changing, highly motivated and relentless attacker, some of which are government sponsored
  • Others
Here are some secrets of the security industry and practical ways to command honesty from your trusted security providers.
  • Antivirus certification omissions - One of the biggest secrets in the industry is that, while antivirus tools detect replicating malicious code like worms, they do not identify malcode e.g. nonreplicating Trojans. Although Trojans have been around since the beginning of malicious code, there is no accountability in antivirus certification tests. Today Trojans and other forms on nonreplicating malcode constitute 80% or more of the threats businesses are likely to face. Antivirus accountability metrics are simply no longer reflective of the true state of threat.
  • There is no perimeter - If you want to fight on the perimeter then you need to define where and what the perimeter is. Is the endpoint the perimeter i.e. is the user the perimeter? Is it not more likely that the business process is the perimeter, and the information itself forms part of the perimeter too. It is unlikely that you design your security controls with no base assumption on establishing a perimeter. The mistaken assumption we tend to make is that we have established controls at the perimeter and are therefore secure. Unfortunately for many types of threats, we could be very wrong.
  • Risk management applies - Risk management threatens vendors. Risk management really helps an organization understand its business and its highest level of risk. However, your priorities don't always map to what the vendors are selling. Vendors focus on niche markets and individual issues so you will continue to buy their individual niche products. If you don't have a clear picture of your risk profile and priorities, vendors are obliged to set them for you. Trusted security partners will provide options for assessing your risk posture and help you develop plans to make the most security impact for the least cost and complexity. Security needs to conform to and support your business priorities. Too often, vendors want your business to conform to their product portfolio.
  • Vulnerable People are more of a risk than weak software. - There are 3 areas to be considered where security is vulnerable; 1) software 2) weak configuration and 3) people. The lion's share of the security market is focused on the so-called software vulnerabilities but not so much on the other 2 areas. The people factor is the largest uncovered area of risk. This is malicious code that doesn't leverage a vulnerability but rather leverages the vulnerable person. e.g. downloading a dancing skeleton for 'a spooky good time' (this was a trick employed by Storm), social engineering, spear phishing, etc. While we still need to find software vulnerabilities and patch them, we must understand that an organization is only as strong as its weakest link (the user). And more attention needs to be paid in mitigating the other two ways beyond software.
  • Can Compliance threaten security - Compliance in and of itself is a good thing but it does not equal security. At the very least it's a resource and budget conflict and it can split our focus. Compliance is there to raise and maintain the minimum standard of security, but in its weakest form, it only maintains the minimum requirements.
  • What is easy to measure is not always the most valuable - If you have 15 software vulnerabilities last month and record that 12 of them have been patched, is this a true reflection of your effectiveness. It is much harder to measure how effective end user training was to make administrators immune to social engineering attacks. You need to be compliant, but don't allow your entire risk strategy to sit back and relax, based on it.
  • Vendor blind spots allowed for Storm - Storm is being copied and improved. The Storm era of botnets is alive and well, nearly two years from when it first appeared. How is this possible? 1. Botnets thrive in the consumer world where there is little money for innovation. Storm and its controllers know and survive on this. They are making money out of everything from spam to pump-and-dump stock scams. 2. They seem to be able to eat antivirus techniques for breakfast. A lot of the techniques and innovations used by Storm are not new; they are just being leveraged artfully against the blind spots of antivirus certifications and antivirus vendors. 3. Malcode does not need vulnerabilities. Most of the Storm recruitment drives have leveraged social engineering and play off of a holiday or sporting event. Go team!
  • Product v Process - Security protection has established itself as a huge professional business. "Technology without strategy is chaos". The security market is too focused on the latest red hot top box or super scorching technology. The shear volume of security products and the rate of change has super-saturated most organisations and exceeded their ability to keep up. Organizations realize only a fraction of the capabilities of their existing investments. Furthermore, the cost of the product is often a fraction of the cost of ownership. There was a time when you could "do it yourself." But the simple days of Virus meets Antivirus are long gone. Highly effective organisations are embracing professional and managed security services to extend and augment their in-house expertise. By focusing your in-house expertise on what you know best i.e. your business, the scale comes from teaming with third-party expertise. This will be increasingly necessary in these tough economic times.
The primary goals for executives is to squeeze cost, whilst maximising profit and reducing complexity. Today we are seeing a massive convergence in the security market. In a guard-dog eats guard-dog world there are soon only going to be a few big dogs left and a bunch of smaller mutts. Will the consolidation dogfight lead to better efficiency or will it lead to a vendor lock-in?

As company leaders and executives continue to squeeze and simplify, they will face many choices. Simply following the reduction of vendors by consolidation, may fail to meet their needs and balance their fragile cargo; cost, complexity and risk. Do vendors have a responsibility in this equation? Will they rise to the challenge? True risk management can show how and where you can adjust and prune appropriate solutions,

The key is using risk management methodology to drive responsible simplification of business processes and to take control of the future.