Henri Fayol 1841-1925 1 Global means: - Having a presence in other countries - Standardization -...

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Henri Fayol1841-1925 Global means:

- Having a presence in other countries

- Standardization - International focus: reduction of ties to any one country and community

- Minimization of country-oriented images and values

- Having acquisitions or alliances in other countries

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Henri Fayol1841-1925

Catalysts for Global Software Teams:

1. Specialized TalentSend the work to where the resources are

2. Mergers and acquisitionsEnter a foreign market quickly

3. Reduction in costReduce labor costs offshore

4. Global presenceParticipate in global markets

5. Reduction in time-to-marketFollow-the-sun development

6. Proximity to the customerEstablish an ongoing relationship with key customers

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Henri Fayol1841-1925

Five forces that make Global IT management very difficult:

1. Geographic dispersion

2. Loss of communication richness

3. Coordination breakdown

4. Loss of “teamness,” the sense of belonging to a team

5. Cultural differences

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Henri Fayol1841-1925

Global Software Teams Problems

• Dispersion

Separation distance (in meters)

Pro

babili

ty o

f co

mm

unic

ati

on

at

least

once

a w

eek

25 50 100

30

20

10

10

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Henri Fayol1841-1925

Loss of Communication Richness

SENSUALNESS

INTERACTIVENESS / IMMEDIACY

US MAIL

FACE-TO-FACE

TELEPHONE

EMAIL

VIDEO CONFERENCING

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Henri Fayol1841-1925 Increasing Complexity with Larger Teams

2 = 1

4 = 6

6 = 15

Coordination Breakdown:

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Henri Fayol1841-1925

Team Size Relationships

2 1

3 3

4 6

5 10

6 15

7 21

8 28

9 36

10 45

11 55

12 66

NUMBER OF COMBINATIONS =

n * (n - 1) / 2n = size of the project team

Coordination Breakdown: Team Size / Number of Relationships

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Henri Fayol1841-1925

Loss of Teamness

TO BE A TEAM YOU MUST HAVE:

• SHARED GOALS

• SHARED CULTURE

• SHARED PERSONAL RELATIONSHIPS

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Henri Fayol1841-1925 TEAM BUILDINGTRUST – CLASSIC DEVELOPMENT

PERFORMING TEAM WORKS TOGETHER TOWARD A COMMON GOAL. CONFLICTS ARE HANDLED CONSTRUCTIVELY

NORMING TEAM BEGINS TO FORM NORMS, ROLES, AND PROTOCOLS FOR WORKING TOGETHER

STORMING CONFLICT BREAKS OUT OVER ROLES, OBJECTIVES, AND TASK ALLOCATION. DIFFERENT PEOPLE ARE PURSUING DIFFERENT GOALS.

FORMING TEAM GETS TOGETHER AND GETS TO KNOW EACH OTHER

Loss of Teamness

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Henri Fayol1841-1925

Behavior/Strategy High-Trust Teams Low-Trust Teams

Style of Action Proactive Reactive

Focus of Dialog Task Output Driven Procedural

Team Spirit Optimistic Pessimistic

Leadership Dynamic Static

Task-Goal Clarity Team’s Responsibility

Individual’s Responsibility

Role Division and Specificity

Emergent and Interdependent

Assigned, Independent

Time Management Explicit/Process-Based

Nonexistant

Pattern of Interaction

Frequent, Few Gaps Infrequent, Gaps

Nature of Feedback Predictable, substantive

Unpredictable, nonsubstantive

Comparison of Behavior/Strategies of High and Low Trust Teams

Loss of Teamness

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Henri Fayol1841-1925

YOUR EXPERIENCE

IS THE CLASSIC MODEL OF TRUST CONSISTENT WITH YOUREXPERIENCE AS A TEAM MEMBER – AT DEPAUL OR ELSEWHERE . . .

TOM PETERS (IN SEARCH OF EXCELLENCE) SAID:A CUSTOMER RELATIONSHIP IS STRONGER AFTER A PROBLEM

HAS BEEN HANDLED WELL THAN IF NO PROBLEM HAD OCCURRED.

IS THIS CONSISTENT WITH YOUR EXPERIENCE?

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Henri Fayol1841-1925

FACE-TO-FACE MAINTAINS/RENEWS TRUST

MILESTONE MEETING / CELEBRATION

SHARE THE VISIONWHAT’S THE GOAL OF THE PROJECT AND HOW DOES EACH PART OF THE TEAM FIT IN

SOCIALGET TO KNOW ABOUT EACH OTHER MORE / AGAIN. BUILD SHARED EXPERIENCES.

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Henri Fayol1841-1925

BELIEFSVALUES

COMMUNICATION

Reward

CULTURE: BELIEF/VALUES/COMMUNICATION

Life/DeathNatureHistoryReligion

CompetitionIndependenceRisk-takingGroup harmonyCooperationAge-seniorityInformationDevotionInterrelationshipFamily harmonyFormality/status

Social organizationNonverbal communicationEmotional response

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Henri Fayol1841-1925 People who speak:

3 languages: trilingual

2 languages: bilingual

1 language: American

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Henri Fayol1841-1925

In Heaven, The Police are British,The Cooks are French,The Lovers are Italian, and It’s all Organized by the Germans

In Hell,The Police are French,The Cooks are British,The Lovers are German, andIt’s all Organized by the Italians.

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Henri Fayol1841-1925

NATIONAL CULTURE

PROFESSIONAL CULTURE

CORPORATE CULTURE

RACE?

RELIGION?

FUNCTIONALCULTURE

TEAMCULTURE

GENDER?

CULTURE AND SUBCULTURES

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Henri Fayol1841-1925

DIMENSIONS OF IT CULTURE – Exercise

Rank these countries (USA, Japan, Hong Kong, Germany) and these characteristics from highest to lowest.

• Revering hierarchy Example:USAJapanHong KongGermany

• Individualism/collectivism

• Work-life/Personal-life

• Risk avoidance

• Long term orientation

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Henri Fayol1841-1925

0102030405060708090

100110

Hierarc

hy

Indiv

iduali

ty

Work

life Risk

Long

term

USA

Japan

Hong Kong

Germany

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Henri Fayol1841-1925

DIMENSIONS OF IT CULTURE and IT

• Revering hierarchy‒ Organization of the IT Department

• Individualism/collectivism ‒ IT Reward Systems

• Work-life/Personal-life ‒ Online, Oncall, 24x7

• Risk avoidance ‒ Quality v. schedule ‒ Technological change

• Long term orientation ‒ Technological change

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Henri Fayol1841-1925

FACE-TO-FACE BUILDS TRUST

KICK-OFF MEETING

SHARE THE VISIONWHAT’S THE GOAL OF THE PROJECT AND HOW DOES EACH PART OF THE TEAM FIT IN

METHODOLOGYWHAT METHODOLOGY [PROCESS/FRAMEWORK] WILL WE USE

COMMUNICATIONHOW SHOULD THE TEAM COMMUNICATE

CULTUREIN WHAT WAYS ARE WE DIFFERENT AND IN WHAT WAYS ARE

WE THE SAME

SOCIALGET TO KNOW ABOUT EACH OTHER. BUILD SHARED EXPERIENCES.

IF YOU TELL PEOPLE CLEARLY WHAT YOU WANT YOU HAVE A MUCH BETTER CHANCE OF GETTING IT THAN IF YOU DON’T.

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Henri Fayol1841-1925

OUTSOURCING

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Henri Fayol1841-1925

Outsourcing

• a management tool (a tool makes work easier and/or more productive)

• emphasizes what is to be done, rather than how or who • task-level management responsibilities rest with supplier • work takes place mainly/entirely off site

• supplier provides all resources

• employee relations managed by supplier

• typically paid by performance not time

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Henri Fayol1841-1925 OUTSOURCING DRIVERS

• RE-FOCUS ON “CORPORATE CORE COMPETENCIES”

- SHIFT IN BUSINESS STRATEGIES AWAY FROM DIVERSIFICATION

- SENIOR EXECUTIVES VIEW IT AS A NON-CORE ACTIVITY

• PERCEPTION OF IT AS A COST BURDEN

-UNCERTAINTY ABOUT IT’S VALUE

-IT FAILED TO DELIVER THE PROMISE OF COMPETITIVE ADVANTAGE

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Henri Fayol1841-1925

Outsourcing Drivers

• Cost savings (especially offshore)

• Outside the core business

• Functionally discrete

• Lack of internal skills

• Political compromise

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Henri Fayol1841-1925 FACTORS FAVORING IT OUTSOURCING

• TECHNOLOGY CHANGE EXPANDS OPTIONS- MANY INFORMATION PRODUCTS/SERVICES BECOME COMMODITIES- SEPARATION OF MANAGEMENT, OPERATION, AND DELIVERY OF INFORMATION SERVICES- FIRMS CAN NOT COPE WITH RAPID ADVANCEMENT OF TECHNOLOGY AND SKILL REQUIREMENTS

• CHANGES IN THE MANAGEMENT OF IT- DIFFICULTY IN MEASURING BENEFITS FROM AN IT INVESTMENT AND ITS COSTCIOs TAKING A BUSINESSVIEW, NOT JUST A TECHNICAL VIEWDECENTRALIZATION OF THE IT ORGANIZATION

• INDUSTRY LEVEL CHANGES- RAPID TECHNOLOGICAL CHANGE CREATED OVER CAPACITY IN CERTAIN FUNCTIONS- THE NUMBER OF OUTSOURCING VENDORS INCREASED OFFERING PRICE COMPETITIVE SERVICES- OUTSOURCING VENDORS HAVE FLEXIBILITY IN RECRUITING AND REWARDING TECHNICAL TALENT

• FIRM LEVEL CHANGES- CORPORATE IMPERATIVE TO REDUCE COSTS- GLOBALIZATION OF BUSINESS CREATES NEW NEEDS

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Henri Fayol1841-1925

3 CATEGORIES OF OUTSOURCING

• TOTAL OUTSOURCE ALL IT

• SELECTIVE OUTSOURCE SELECTED ACTIVITIES

• TRANSITIONAL OUTSOURCE “LEGACY” SYSTEMS WHILEWORKING ON NEW SYSTEMS

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Henri Fayol1841-1925

TOTAL OUTSOURCING

ADVANTAGES-CONSISTENCY AND STABILITY WITH THE SAME VENDOR FOR MANY ACTIVITIES-LOWER TRANSACTION COSTS

DISADVANTAGES-VULNERABLE TO VENDOR MANIPULATION OF PRICING AND MAINTENANCE COSTS-VULNERABLE TO LOSS OF VENDOR SUPPORT

----------------------------------------------------------------------------------------------------

SELECTIVE OUTSOURCING

ADVANTAGES-SELECT BEST-OF-BREED FOR AN ACTIVITY-CREATE A COMPETITIVE ENVIRONMENT-FLEXIBLE; ADAPT TO CHANGE-CAPITALIZE ON ORGANIZATIONAL LEARNING-LESS RISKY THAN TOTAL OUTSOURCING

DISADVANTAGES-MULTIPLE VENDORS TO MANAGE-HIGHER TRANSACTION COSTS ASSOCIATED WITH MULTIPLE EVALUATIONS ANDCONTRACT NEGOTIATIONS

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Henri Fayol1841-1925 TRANSITIONAL OUTSOURCING

ADVANTAGES-OUTSOURCE LEGACY SYSTEMS MAKES STAFF FREE TO FOCUS ON NEW SYSTEMS-LEGACY SYSTEMS ARE MATURE AND CUSTOMERS AND VENDORS UNDERSTANDREQUIREMENTS AND CAN WRITE A SOUND CONTRACT

DISADVANTAGES-VULNERABLE TO VENDOR MANIPULATION OF PRICING AND MAINTENANCE COSTS

-VULNERABLE TO LOSS OF VENDOR SUPPORT IF NEW SYSTEM IS DELAYED

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Henri Fayol1841-1925

MEASURES OF OUTSOURCING SUCCESS

-TARGETED COST SAVINGS REALIZED OF BETTER

-SERVICE LEVELS MAINTAINED OR IMPROVED

-USER MANAGEMENT SATISFIED

-FEW CLIENT/VENDOR DISPUTES

-VENDOR REPRESENTATIVES RESPONSIVE/ATTENTIVE

-OUTCOMES MATCH OBJECTIVES

-LIKELY CONTRACT RENEWAL

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Henri Fayol1841-1925

Popular Outsourced Activities

• Application development

• Data center

• Desktop/personal computers

• Network (e.g., LANs, WANs)

• Support services/help desk

• Training

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Henri Fayol1841-1925

OUTSOURCING PITFALLS

• Cumbersome transition into and coming out of an outsourcing relationship.

• Incomplete or vague contracts.

• Lack of an infrastructure for supporting an outsourcing relationship.

• Negotiating a contract with an unsuitable vendor.

• Poor communications with vendors.

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Henri Fayol1841-1925

PERSISTENT OUTSOURCING PROBLEMS

• Cultural differences that lead to miscommunications and a lack of trust

• Time zone differences

• Poor English language skills

• Strange foreign work-hour regulations

• High employee turnover in India

• Difficulties in arranging visas for foreign professionals to work in the United States

• An offshore unit’s lack of domain knowledge

• An unreliable telecommunications infrastructure.

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Henri Fayol1841-1925

Outsourcing should not occur if:

• the service is mission critical

• the service can be done more effectively in-house

• outsourcing cannot provide a savings of five percent or more

• fear exists over losing controls.

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Henri Fayol1841-1925

THE OUTSOURCING PROCESS

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Henri Fayol1841-1925

STAGES OF OUTSOURCING

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Henri Fayol1841-1925

Offshore Outsourcing Readiness vs. Attractiveness

High

Low

Offshore Readiness

Low HighOffshore Attractiveness

Ready but not attractive

Ready and attractive

Not attractive and not ready

Attractive but not ready

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Henri Fayol1841-1925

Who is Henri Fayol?

A French engineer who:

Defined the functions of management:• Planning • Organizing • Leading • Controlling

And identified 14 principles of management:• Specialization/division of labor• Authority with responsibility• Discipline• Unity of command• Unity of direction• Subordination of special interests• Remuneration• Centralization• Chain / Line of Authority• Order• Equity• Lifetime jobs (for good workers)• Equity• Esprit de corps