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Leadership in IT

IT Workforce - Here Today,
Gone Tomorrow

Amidst rumors of techno-jocks being hired straight from high school and with the current high demand/low supply of IT workers, top CIOs are brainstorming ways to keep them, and keep them happy.


Put together a panel of 15 world-class CIOs and ask them what they think about the technical worker shortage and what they should do about it. Limit the meeting to two hours and be willing to testify that the results are meaningful and representative of the group's thinking. Does the task seem daunting or perhaps lunatic?

There was a time when I would have called this "Mission Impossible," but I have "been there, done that, and survived." As you might guess, the task was 90 percent hard work, planning, and preparation. The other 10 percent, which helped reduce the time requirement while improving validity, was aided by a new technology, GroupSmart, that facilitates dynamic idea generation, consensus building, organization, and evaluation.

In a meeting sponsored by a major Silicon Valley computer company, we asked a panel of top CIOs to brainstorm, "how to attract, develop, and retain mission critical IT skills." This is no small question at a time when U.S. Secretary of Commerce William M. Daley says that every CEO he visits lists this as "one of the two or three top issues they want to discuss." The Information Technology Association of America estimates that more than 340,000 high-tech positions in America remain unfilled.

While the United States may be the premier employer of information workers, the market and the problem are global. For every worker attracted by U.S. salaries, there is one less skilled employee in countries that find it even harder to cope with exploding salary demands. In the U.S. a basic computer science degree can command an annual salary of about 40,000 USD the day after graduation. Masters degrees are, of course, worth more, and there are reports that a sheepskin from Stanford University in California can be parlayed into a whopping $85,000 starting salary.

Silicon Valley and a number of other technology hotspots in the U.S. have sucked up all available technology graduates like an industrial-strength vacuum cleaner. The pipeline is empty and even if science-averse high school students provoked by seemingly unlimited inducements were to rush college admissions centers, it would still be four years before the first of this new supply were to emerge from academia.

There are rumors of techno-jocks being hired straight from high school and some companies are trying to retread anyone willing to change jobs even with little or no prior computer experience.

It was in this superheated market that I facilitated a meeting of CIOs looking for an answer. Here is what they said:

Over the previous decade companies have systematically treated workers as objects, assets, and machines, but not as people. Now that supply is low and demand high, it is the "Revenge of the Nerds." People who have been treated as a commodity are now selecting from the highest bidders, and corporate loyalty is no longer part of the equation.

The acknowledged shortage is exacerbated by convergence with other phenomenon. Year 2000 issues have pulled away workers that would normally be available to other sectors of the industry. At the same time there has been unprecedented growth in enterprise systems such as SAP, BAAN, and PeopleSoft, and society has become totally dependent on networking technology. CIOs are between a rock and a hard place, between the sword and the wall, because customer expectations for time to deployment, cost-effectiveness, and IT system availability are as high as the work force is low.

IT workers have captured control, demanding increased compensation and innovative benefits. Generation X'ers are also highly concerned with alternative work arrangements and quality of life.

Our panel agreed that human resource departments could not cope with the current problem and one panel member commented that the shortage was not just limited to IT workers, but to educated and skilled workers in general.

When asked to rank the skills needed for their immediate needs the panel responded with:

  1. NT, network, and telecom management skills

  2. S/390, COBOL, and Assembler veterans

  3. Managers and leaders with refined people skills

  4. Business analysts with process change experience

  5. Database development and administration credentials

  6. UNIX wizards

  7. Senior application developers

As complex as these issues were, the panel was able to sort out the issues in record time. Each member of the panel sat at a portable computer networked to a server. In this particular case I worked with all of the participants in the same room, but I have also facilitated group sessions with members around the world tied together with an internet enabled linkage. Distance is actually less of a problem than time dislocation where the early risers aren't quite awake and those participants who have already put in a full day are dead tired. In cases where time zones are a problem, it is even possible to work asynchronously requiring only the facilitator to rise early and go to bed late.

In electronic brainstorming, each participant silently contributes ideas which, in turn, stimulates new thinking by other members of the group. As facilitator, I was then able to merge duplicate skills, sort them if needed, then collect the group's votes to calculate a group priority. The whole process went extremely fast as there was little debate or political wrangling involved in this computer-mediated process. At this stage no long-winded explanations were required, no one had to defend their submissions, no one had to defend their position from other individuals or from the group. Of course, this is what makes the job of the human facilitator so important. Proper use of the system requires a facilitator who can flexibly respond to the advantages of the computerized process and the individual's need for personal expression. It is a line that the facilitator must constantly redraw as the need arises.

The second phase of our process was even more challenging. After determining what skills were in greatest demand, I asked the group what could be done about the IT labor shortage. Again we were able to use technology to generate and prioritize ideas while providing an equally creative, and supportive method of expression for everyone in the group. In the exploration phase, no one was allowed to turn thumbs down on anyone else's idea. This encourages participation and precludes intimidation. After going through a slightly more complex process of consensus building here is what our group said:

We must customize rewards and compensation based on the needs and motivations of each employee. Just as many industries have moved to mass customization to improve their sales, we must use a similar process to reach out to our own employees. Where one employee's concerns might be structured around childcare issues, another is equally concerned with growth and educational opportunity.

People are too complex to be adequately characterized using the well-known Maslov's Hierarchy of Needs where individual actualization supercedes all other concerns. The more highly motivated, skilled, and educated a person is, the more likely they are to place dependable meaning, commitment, and loyalty at the top of their value structures.

Competitive compensation packages are a must, but if individualized and creatively structured they can offer more value to the individual at less cost to the company. Compensation needs to be within 10 to 15 percent of the benchmark level and special bonuses are appropriate for critical skills and performance on long-term projects. Company-paid, personal financial planning is an interesting option to explore, and upgraded pension plans for top performers could be attractive to both company and employee.

Health and productivity are intimately interrelated. People can exceed 40-hour workweeks for only short periods before their 80-hour weeks become less productive than the shorter work schedules. You can call for special efforts in short bursts, but extended physical and mental stress sicken the body and dull the mind. Company exercise programs, company sports programs, sabbaticals, adequate staffing, and elimination of on-call assignments are important to maintaining a sharp and energetic work force.

Employee's families should be involved in reward programs and company recreational activities. Day-care centers are important to this family orientation and could help recruit single parents to the IT team.

Rewards should be based on achievement and special attention reserved for service given to clients and other team members.

Executives must support workers more than workers support executives. Employees need to be empowered in defining their work, pay, benefits, flex time, and job sharing. Involving employees in goal setting and strategic direction creates "buy-in," building commitment and motivation.

Smart employees have long recognized that preparation and advanced skills command the greatest reward. Our colleagues are more than willing to retool themselves, but they need proactive support from the corporation in terms of educational programs, financial support, and time. Employees want degrees, advanced certificates, exposure to leading-edge technology, and leadership training as much as they want direct financial compensation.

In the end, we efficiently fit about a two days of discussion and theorizing into a scant two hours. Time was important to this group of busy IT executives. Even more important was the way our computer-mediated process insured everyone an equal forum and heightened interaction while minimizing harmful competition and dominating behaviors.

While building a practice in leadership development, executive coaching, team building, and change management, I have had a chance to pioneer computer-mediated idea generation and consensus building techniques. So far, I have met with success in terms of time and money saved for my clients, new opportunities discovered, and successful projects arising from solid foundations.

If you have questions about the process please contact me and I will be glad to share my experience. Please also feel free to contribute ideas regarding solving the CIO's People Dilemma.

 


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