Week 9
Monday, March 27
• Organizational Focus: User vs. IT Domination
• Leadership and IT Governance
R. Ching, Ph.D. • MIS Area • California State University, Sacramento
1
User Dominance vs. IT Dominance
• Tensions between business users of IT and IT staff
– Innovation (introduction of IT) and control (quality
assurance) issues
• Where should innovation begin?
• Do the IT applications comply with organizational processes
(e.g., accounting practices)?
– Fulfilling immediate needs and ensuring long-term
standards
• Are end-user developed IT applications and investments
compatible to other organizational resources?
• Should adherence to long-term goals override immediate
needs (e.g., Maginot line thinking)?
R. Ching, Ph.D. • MIS Area • California State University, Sacramento
2
Four Difference Perspectives
• From centralized, IT-driven innovation to decentralized
end-user driven innovation
(“lighting fires” – Gary Brooks, VSP)
• End-user driven innovation over IT department protests
• From decentralized, end-user driven innovation to
centralized IT management
(e.g., Sutter Health in the mid-1990s)
• From decentralized, end-user driven innovation to
unexpected centralized innovation (e.g., Sutter Health in
the 2000s)
R. Ching, Ph.D. • MIS Area • California State University, Sacramento
3
Drivers Toward User Dominance
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Pent-up user demand
Need for staff flexibility
Growth in the IT services industry
User’s desire to control their own destiny
Fit with the organization
R. Ching, Ph.D. • MIS Area • California State University, Sacramento
4
Drivers Toward a Centralized IT Structure
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Staff professionalism
Standard setting and ensuring system maintainability
Envisioning possibilities and determining feasibility
Corporate data management
Cost estimation and analysis
R. Ching, Ph.D. • MIS Area • California State University, Sacramento
5
Coordination
Management
Sharing
Responsibilities
IT
Domain
R. Ching, Ph.D. • MIS Area • California State University, Sacramento
User
Domain
6
IT Responsibilities
• Develop and manage long-term architectural plan and
ensure new projects fit with the plan
• Develop process to establish, maintain and evolve
company standards
• Establish procedures to consider outsourcing of proposed
projects
• Inventory of installed and planned systems and services
• Identify career paths of IT staff
• Provide users with better understanding of IT costs
• Ensure compatibility of new acquisitions
R. Ching, Ph.D. • MIS Area • California State University, Sacramento
7
IT Responsibilities
• Identify and maintain relationships with preferred
suppliers
• Educate users of benefits and pitfalls of new
technologies
• Periodically review legacy systems
R. Ching, Ph.D. • MIS Area • California State University, Sacramento
8
User Responsibilities
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Get the “big picture” of IT and the organization
Realistically estimate costs of deploying IT
Get user support (buy-in) of new projects
Match staffing to relevancy of IT to business strategy
Audit system reliability standards, communications
services performance, and security procedures
• Get involved with planning
R. Ching, Ph.D. • MIS Area • California State University, Sacramento
9
Management Support
• Balance IT and business user dominance
• Ensure comprehensive corporate IT strategy
• Manage inventory of hardware and software systems
and services
• Establish standards for acquisitions, development and IT
systems operations
• Facilitate transfer of technology throughout the
organization
• Encourage technical experimentation
• Planning and control link IT to company’s goals
R. Ching, Ph.D. • MIS Area • California State University, Sacramento
10
Strategic Grid
User-driven vs. IT-driven
High
Factory
Operational IT
IT Impact on
Business
Operations
Support
Basic elements
Strategic
Strategic IT plan,
initiatives
Turnaround
Gradual adoption
Low
Low
IT Impact on Strategy
R. Ching, Ph.D. • MIS Area • California State University, Sacramento
High
11
Leadership and Governance:
Management vs. Leadership
• Managers…
– Managers have subordinates
– Managers have a position of authority vested in them
by the company, and their subordinates work for
them and largely do as they are told
– Managers are paid to get things done
– Due to their backgrounds, managers generally like to
run a “happy ship”
http://changingminds.org/disciplines/leadership/articles/manager_leader.htm
R. Ching, Ph.D. • MIS Area • California State University, Sacramento
12
Leadership and Governance:
Management vs. Leadership
• Leaders…
– Leaders have followers
– Appeal to followers, showing how following them will
lead to their (followers’) hearts' desire
– Always good with people, and have quiet styles that
give credit to others (and takes blame on themselves)
• Are very effective at creating the loyalty that great
leaders engender
– Appeared as risk-seeking, although they are not blind
thrill-seekers
http://changingminds.org/disciplines/leadership/articles/manager_leader.htm
R. Ching, Ph.D. • MIS Area • California State University, Sacramento
13
Subject
Leader
Manager
Essence
Change
Stability
Focus
Leading people
Managing work
Have
Followers
Subordinates
Seeks
Vision
Objectives
Detail
Sets direction
Plans detail
Power
Personal charisma
Formal authority
Appeal to
Heart
Head
Energy
Passion
Control
Dynamic
Proactive
Reactive
Persuasion
Sell
Tell
Style
Transformational
Transactional
Exchange
Excitement for work
Money for work
Risk
Takes risks
Minimizes risks
Rules
Breaks rules
Makes rules
Conflict
Uses conflict
Avoids conflict
Direction
New roads
Existing roads
Blame
Takes blame
Blames others
http://changingminds.org/disciplines/leadership/articles/manager_leader.htm
R. Ching, Ph.D. • MIS Area • California State University, Sacramento
14
Managers vs. Leaders
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The manager administers; the leader innovates
The manager maintains; the leader develops
The manager accepts reality; the leader investigates it
The manager focuses on systems and structures; the leader focuses
on people
The manager relies on control; the leader inspires trust
The manager has a short-range view; the leader has a long-range
perspective
The manager asks how and when; the leader asks what and why
The manager has his or her eye always on the bottom line; the
leader has his or her eye on the horizon
The manager imitates; the leader originates
The manager accepts the status quo; the leader challenges it
The manager is the classic good soldier; the leader is his or her own
person
http://www.telusplanet.net/public/pdcoutts/leadership/LdrVsMngt.htm
R. Ching, Ph.D. • MIS Area • California State University, Sacramento
15
Three Rules of Leadership
• Rule 1: You must have or develop the skill, and take the
time to find out what is in the follower's mind concerning
his situation and how he perceives you
– Know what is perceives as negative
– Create and manage a system of feedback loops that keep people
in permanent touch with follower mindset
• Rule 2: To be a powerful leader, you must present your
"leaderself" to others, rather than your natural self
– Do exactly the leadership behavior called for by the situation
• Rule 3: To create an effective leaderself, you must
operate from self-awareness rather than from an
automatic mind
– Focus on the “good of the whole”
http://www.businessleader.com/bl/sep97/leadrshp.html
R. Ching, Ph.D. • MIS Area • California State University, Sacramento
16
Four Competencies of Leadership
• Know ourselves very, very well
– Recognizing that all of us are actually three people in one: what
we are, what we think we are, and what others think we are
• Know our people—thoroughly
– Be able to motivate people with the right ideas, the right work,
and the right methods or techniques
• Highly competent on the technical and people sides of
our job if we intend to be successful
• Know the laws and principles of leadership and
management as they relate to leading ourselves and
people
– If you want to play the game, you've got to know the rules
http://www.leadershiphelp.com/introduction.cfm?show=4
R. Ching, Ph.D. • MIS Area • California State University, Sacramento
17
Four Key Principles of Leadership
Mark Willes, former COO of General Mills
• Lead
• Set high standards
• Empower others
– Accountability
• Kindle passion
– “People will work for a living but they'll die for a cause”
R. Ching, Ph.D. • MIS Area • California State University, Sacramento
18
IT Governance: Definitions
• A generic term which describes the ways in which rights
and responsibilities are shared between the various
corporate participants, especially the management and
the shareholders.
R. Ching, Ph.D. • MIS Area • California State University, Sacramento
19
IT Governance: Definitions
• The relationship between the shareholders, directors and
management of a company, as defined by the corporate
charter, bylaws, formal policy and rule of law.
R. Ching, Ph.D. • MIS Area • California State University, Sacramento
20
IT Governance: Definitions
• Corporate governance is the method by which a
corporation is directed, administered or controlled. It
includes the laws and customs affecting that direction,
as well as the goals for which it is governed. The
principal participants are the shareholders, management
and the board of directors. Other participants include
regulators, employees, suppliers, partners, customers,
constituents (for elected bodies) and the general
community.
R. Ching, Ph.D. • MIS Area • California State University, Sacramento
21
IT Governance: Definitions
• The term "governance" refers to the decision-making
processes in the administration of an organization.
• Different nations and different organizations within a
nation may approach governance concerns (who makes
decisions? who pays the bills?) in very different ways.
R. Ching, Ph.D. • MIS Area • California State University, Sacramento
22
IT Governance: Definitions
• Gartner defines Governance as the “assignment of
decision rights and the accountability framework to
encourage desirable behavior in the use of IT.”
• In plain English, IT Governance is the rules and
regulations under which an IT department functions. It
is a mechanism, put in place to ensure compliance with
those rules and regulations.
R. Ching, Ph.D. • MIS Area • California State University, Sacramento
23
IT Governance
• Involves…
– Policies and procedures that specify and guide
decision making and the actions of people
– Specifying the responsibilities of management,
employees and shareholders (stakeholders), and
decision rights
– Administering the policies and procedures in daily
operations
– Adhering to the policies and procedure in short- and
long-term planning
R. Ching, Ph.D. • MIS Area • California State University, Sacramento
24