Keeping IT Relevant in the Downturn

Author: Kristen Craft

June 2009

How do you keep your IT department relevant during this tough economy? The first thing to ask yourself is how does your organization define “relevant”? Because the answer is, well, relative.

• What is the status of your organization right now? Thriving in spite of the economy? Struggling for survival? Somewhere in between?
• Before the downturn, how did your organization view IT? As a strategic advantage? A necessary expense?
• How does your CEO view the downturn as it relates to the company’s long term outlook? A bump in the road? A long, hard road ahead? An opportunity to position for the future?

During this downturn there is certainly a need to focus on less expensive ways to accomplish projects. But smart organizations are balancing that with a strategic eye on projects that will not only help to save money in the short term, but will also enable them to grow when the economy picks back up. Once you understand the focus of the leadership and strategic direction of your organization as a whole, understanding where IT needs to focus to accomplish that balance becomes much clearer.

As consultants, my co-workers and I have the wonderful privilege to interact with many different types of clients, each of which have a different situation, and each of which view their IT needs in different ways. Although there are certainly some organizations who are struggling for survival and some others who are thriving, most organizations we work with view the economy as a painful, yet relatively short term situation. Those companies are pushing through this time with increased focus on areas that will both help them to cut costs and position them for the future.

Some trends we are seeing:

• Virtualization – If companies hadn’t previously embraced virtualization, they are doing it now. Reduction in power, floor space, and the labor to maintain the environment provide both short and long term benefits with very little risk.
• Business Intelligence – How do you tighten your belt if you don’t know how long your belt is? We see an increased focus on metrics. The ability to effectively measure results enables decision makers to quickly spot problems and take evasive maneuvers, a critical aptitude when every dollar counts. Done right, business intelligence can produce both immediate and long term results.
• Process Improvement – Whether your organization is hiring or laying off, improving efficiency of execution is a hot topic. We’ve seen companies address this need both through automation and also by obtaining an outsider’s perspective to help define tighter processes.
• Staff Augmentation – Many organizations are laying off or enacting hiring freezes. As a result, there is some very strong talent on the market now and available for short term work. Many organizations are leveraging highly skilled temporary workers as a way to complete critical projects without breaking the HR bank.
• Prudent, not Cheap – Projects being funded now are typically smaller ones that can produce short term ROI and are low risk. However, those that can also show long term ROI are typically given the highest priority. So beware of the tendency to go cheap, simply in pursuit of short term ROI. Selecting the right tools for long term scalability may cost a little more now, but will enable your project to scale and support a stronger ROI in the long run.
• Keep the Lights on for Less – Since the majority of most IT spend is allocated to maintenance activities, we see organizations exploring options such as managed services, automation, shared resources, and restructured maintenance contracts (equipment and software) in an effort to free up funding for more strategic, ROI-generating projects.

With priorities set appropriately for your organization’s needs, IT can be a tremendously strategic asset for your organization during these tough times. There are many solutions and approaches available that can both generate ROI now, and for years to come. The IT leader’s job is to pick the right ones. Easy, right?