Management by ROI

Or "Management By the Numbers". It's quick, it's easy, no fuss and no muss!

Please note, I'm all for understanding if what you're doing is adding value (or not). However, it does seem that:

0.) It's always and forever all about $$.
1.) Walstreet shareholder-driven managers are often terminally shortsighted when it comes to value
2.) Value is always equated to money, and quick money at that (see #1). No mention of customer goodwill (unless it immediately translates to cashflow. This quarter.) Little beyond lip service for much beyond the next three quarters.

No mention of a company's higher mission/purpose. (assuming it has one)

Jim Collins/Jerry Porras Built to Last has a great bit in it where all the execs of Boeing were sitting around a table discussing the upcoming (I think) 747 project. It was to be a revolutionary project. A huge gamble. What Collins/Porras called a BHAG. (Big Hairy Audacious Goal).

One of the execs asked if they had figures on the ROI.

The response? Essentially "We're not sure."

The exec was incredulious. "Then why would you do it?!!"

"Because we are Boeing. This is what we do."

(Notice a pointed lack of any words relating to "maximizing shareholder value".)

Seems that the pendulum has swung far, far too far into the territory of: “Hey, this management thing isn’t so hard! Just calculate the ROI and if it’s not high enough don’t do it! If anyone calls you on it, you've got numbers to back you up!” Make the most cash possible. And CYA while you're at it.

No insight. No gambles. No spirit. Just dull plodding along to make money. (geez...I think I've just slipped into "diatribe against The Man" territory...)

As with any organic organization, that attitude rolls down...down...down to the downtrodden Rodney Dangerfield of the corporate set, IT. Like a whimpering puppy, IT wants to please it's master and show that I'm good enough, I'm nice enough, and doggone it people LIKE me!

"Validate me!" IT cries to each and every customer. "You use me every day, I try and cater to your every whim, yet still you fume and stomp when email isn't delivered on time. Well...so tell me how much it's worth to you to get your Blond Joke -o- the Day delivered to Outlook on time?!! How much money did you save by getting to your files this morning? I resolved your help ticket and got your MSN communicator working in record speed - that adds bucks to our bottom line, right?"

Gotta track those numbers. Translate everything to dollar signs. Metrics to show how fast email is delivered, tickets resolved speedily and servers humming with uptime.

Metrics are all good and well…but can we really reduce the art of management and leadership to number crunching and CYA justifications?

Even as clueless as I often am, I know there’s more to good management then that.

In a fit of pique awhile back, my mind drifted into an alternate (but not too alternate) universe...

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[helpdesk:]“Hello, This is the helpdesk”

[caller:]“This is Stan from payroll. Our file server is down.”

[hd:]“Hmm…Stan, I see from our metrics that you’re utilization of the server is only at 18.732%. That corresponds to a space costs us approximately $386.62/month.”

[caller:]“Umm..ooohh kaaay. When will it be back up?”

[hd:]“Well sir, according to our tracked metrics and ROI calculation, you obviously don’t need the space that bad.”

[caller:]“WTF?!! We USE that file space!”

[hd:]“I completely understand sir. However, IT now has to justify all our resources to the CIO and CFO. If an asset’s usage falls below a certain point it’s determined that the resource isn’t contributing enough to the bottom line."

[caller:]“Wha? But… Ho… What am I going to do now? That server had figures I need!”

[hd:]“Well sir, we do have one alternative. Can you tell me how much they’re worth?”

[caller:]“What?!”

[hd:]“How much they’re worth.”

[caller:]“Worth?!! They’re worth a LOT! I can’t do my JOB without them!!”

[hd:]“Ah sir, I wouldn’t use that argument. After all, your job is an expense on the balance sheet. If the only consequence of losing the data is you losing your job, that’s…well…that’s an easy win for IT metrics. We look good, because we've just reduced expenses and all that. Just between you and me I’d try a different tack…”

[caller:]

[hd:]“If we can put a $$ figure on the data, I can put forth a request to have the server brought online. Of course, you’ll want to estimate high as the techs are only authorized to expend 80% of their cost time in the recovery effort.”

[caller:]“80 percent…uh…ok....”

[hd:]“Oh, and you’ll need to show your calculations. It’s a new SOX requirement. Transparency and accountability and all that.”

[caller:]“……..”

[hd:]“Sir..? Sir….?”