Global IT: The Russians Are Coming, The Russians Are Coming - ' Day Three'
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Day Three
I woke up early in the morning to pack my bags. Why is it that you always bring home more than you start out with? Airy flakes of snow had begun to build a wall against my windowpane. I didn't give it much thought, as I wasn't flying out until 7:50 p.m.
The first session, called "How to Ensure Information Technology Delivers" included a managing director at Deloitte & Touche, the CIO of Petersburg Fuel Company, and the CIO of Saturn Automotive.
Most of the time during this session was spent discussing:
First, whether information solutions should simply resolve an issue or a problem, or simultaneously focus on shareholder value. There was some lively discussion as to whether providing a solution is also focusing on shareholder value, but in the end it was agreed that providing solutions to the correct set of issues, and with the correct prioritization, would deliver the greatest possible shareholder value. The bottom line was agreement by all that if you do not ask the right questions, there is no way to provide the right answers. Therefore, a well-defined and valuable project would provide shareholder value as a result of undertaking the project.
The other topic covered during this session was the fundamental non-price competitive advantage. This discussion was somewhat tethered to return on investment, and was mostly about focusing on the R in ROI. So, for example, if the executive team decides that an initiative is so important that it must be completed, the focus will be on the return, rather than the investment. Similarly, a project that is undertaken because of a regulatory requirement may also bring a competitive advantage. In this case, the cost will be monitored, but not of primary concern. Other questions pondered here included: When should ROI be defined and measured? And who should have the responsibility of performing the ROI measurements?
Right after lunch I stopped by my room. The wall of snow on my windowsill was now somewhere between six and nine inches high. I began to wonder if the snow would continue, and if I would be able to fly out that evening.
The second session of the day was a panel discussion called "Adopting Best and Innovative Practices." The panelists included a senior consultant at Deloitte & Touche, the CIO of THK-BP (oil company), a managing director at OTIS EE Group, the CIO of Alfa Bank, a general manager at Rosgosstrakh (insurance), and the CIO of Sheremetyevo International Airport.
The main themes and examples discussed were:
Teaming up with functional business units to uncover innovative ideas and functionality that could be implemented for the benefit of the business. Importantly, there was agreement that there are no "first steps" solely for IT, or for the business unit. The team approach, beginning with brainstorming, was emphasized. Another point that was emphasized was the continued involvement of the business unit throughout the implementation of the initiative.
The discussion progressed into an assertion that adopting best practices was no different than implementing any change, and that it should be governed by the existing change-management program or process. It was recognized that best practices create improvements; however, they can still represent a change to the organization. The importance of having a standard change-management process was restated.
I rushed back to my room so that I could finish packing and prepare for what would turn out to be a two-hour interview with Russia's iOne magazine. This magazine is the equivalent of a BusinessWeek, with sections on business, finance, information technology, human resources, sales, etc. The windowsill snow meter had risen significantly, and I began to question whether my airplane would be allowed to fly out. The Russians assured me that this was "normal" weather and that there would not be an issue with taking off.
The drive to the airport was about an hour and 45 minutes. As I sat on the airplane I reflected on this three-day conference: It was clear that the U.S. information-technology community is respected by the Russians for their position and contributions.
Early in my career, I remember that IT groups would hire business-unit personnel into the IT department, the logic being that it was
easier to teach people how to code than it was to teach them marketing, manufacturing or other disciplines.
Many in the U.S. still operate under this belief because we see companies change out their CIOs and simply have CFOs and other execs "take a turn" at being CIO. Within a short period of time, a real CIO invariably must be engaged—and usually has a mess to clean up.
The Russians told me that at the coder/programmer level this was absolutely the case. However, the Russian C-level executive understands and appreciates the increasing complexity of infrastructure, applications and technology as one ascends the IT career ladder.
Overall, the conference was time well spent. The Russian IT community is a professional group, serious about their careers, their direction, and their results. The conference sessions went into the night and the after-hours, informal sessions went into the wee hours of the morning. The speakers were well prepared on their topics, and the conference format was to hold questions until the end of the speaker's presentation.
The interest and participation by the group were noticeable, and there was not a single session where there was enough time to answer all of the audience's questions.
A few specific takeaways for me at this conference were:
Planning: The planning horizon used by the Russians is further out than that used by U.S. firms. Their dedication to this process and the replanning interval was noteworthy. Therefore, the amount of time spent on planning seemed to be greater than in the U.S.
Value Add: In everything that was discussed and described, the Russians posed the underlying question of shareholder value and return on investment. Even to the point of violent agreement that completion of a successful project and achieving value for shareholders was synonymous.
Spirit: The Russians have a can-do attitude and are not discouraged by their current situation. They are a determined and motivated group.
It is easy to see that the Russian IT-business community will be competition for us in the years to come.
And yes, my plane took off on time.
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