How to Rescue a Failing Technology Function

The pace of Information Technology moves so quickly that it can be hard to follow. Systems that were business-critical yesterday are quickly replaced, only to move on to something completely new within a few years. After the pandemic, the world was focused on collaboration tools such as Zoom and Teams. Two years after that, AI went from being a novelty to becoming the hottest technology on the planet. OpenAI is the darling of the tech world, while Nvidia’s stock jumped $800 per share in one month.

More than ever, a company’s IT function is in a great position to help its business partners navigate through the changes of a dynamic environment. If IT is staffed by excellent leaders who create a healthy culture, the team will be primed and ready to navigate the company through the maze of new technologies.

But what happens when IT is dysfunctional?

Most people who have worked in the corporate world since 2010 have seen at least some of the symptoms. A short list would include:

• Lack of transparency on what IT is doing, or not doing. (“We have no idea what they’re doing.”)
• High turnover, especially of top performers.
• Projects consistently missing deadlines, overspending budgets, or failing to deliver results.
• Lack of a strategic plan or technology roadmap.
• Shadow IT begins to arise within business groups.
• Processes become more important than results. (Conversations with customers begin with, “I need you to…”)

When these symptoms appear, action must be taken to address them, as they will only tend to get worse. Every situation is unique, meaning that there is no one-size-fits-all solution. However, there is a standard approach that can help every organization turn around a failing Technology function.

Take a close look at the organizational structure

People are the building blocks of every organization. What you want to see is that each person is aligned in a role where they can contribute in a meaningful way. When that happens, the talent of your teams can come out in natural and meaningful ways. People are rarely disgruntled when they’re able to see the value that they create on a daily basis. In a dysfunctional organization it is quite common to see not just individual people but whole teams locked up in structures where they cannot add value. If you cannot see how your people are aligned to the work their customers need, it is quite likely that neither they nor their customers can see that either. Organizations like simplicity — the simpler they are, the better it is for everyone.

Next, look at the leaders

There is an old saying from automotive legend Lee Iacocca: “Speed of the leader, speed of the team.” It means that if your leaders are effective and motivated, so too will your teams be. But how do you know if the leaders are actually “high speed”? There is a straightforward way to measure this with almost anyone.

Imagine a scenario where you measure your leaders on a simple x-y spectrum. On the x-axis you measure the amount of “can” that a leader possesses. “Can” is described simply as the person’s ability to effectively do the job to which they’re assigned. On the y-axis you measure how willing your leader is to do the job that they fill — in other words, how much drive does an individual have to get the job done, to push through obstacles and satisfy the customer?

As we can see, there is something that we can call the “Optimal Zone,” where an individual both can do the job in front of them and is also willing to do the work no matter the challenges. When you find a leader in the Optimal Zone, you have found a problem solver.

Finding someone who is a problem solver guarantees that the individual is capable and willing to drive positive change into your IT organization. How you measure this in people is quite subjective, but also not hard to judge. The evidence for someone’s Can and Will is either present or is not. It’s usually easy to tell one way or another.

Pay close attention to the numbers

In this economy, it has become an unavoidable fact that skilled IT workers are always in short supply. Compensation won’t typically be the top factor driving retention (or lack thereof), but if it is not fair, it will become a major factor in keeping your excellent personnel. But what is fair compensation, and can we measure it? The answer is a resounding yes.

Over several decades of direct experience, I have come to conclude that most well-performing IT workers expect to be paid at the 50th percentile of their salary ranges. Top performers seem to have higher expectations — what I would classify as the 75th percentile. Since the pandemic, we have also seen IT workers expect some amount of flexibility to work remotely, whether fully or some other form of hybrid arrangement. Because of this change, your salary bands must be pegged to national surveys, not ones generated regionally. Tech-savvy people are keenly aware of national compensation trends, and so must you be as well if you want your company to be competitive.

Be D-cisive

There is a common personality assessment called the “DISC profile.” One trait that people can have is labeled “D,” which is short for Dominance. According to the official website discprofile.com, people with D traits are described this way:

They prioritize taking action, accepting challenges, and achieving results, and are often described as direct and demanding, strong-willed, driven, and determined.

When rescuing a failing IT organization, it is important to take decisive action. Once the problems are identified, do not delay in taking the necessary steps to make things right. History would suggest that some amount of organizational pruning will be required in order to get the right leaders aligned with the necessary talent that the organization needs. If there is a skill gap after tuning the organizational structure, move quickly to recruit and fill the holes that exist. This will require close partnership with the HR team, especially when creating new roles and filling them — even more so if compensation structures need to be analyzed and adjusted.

It shouldn’t be a mystery to determine how to rescue your failing Technology function. Just remember to get the right organizational structure in place, evaluate your leaders, and make sure your rewards structure is competitive. Once you have those three things aligned, be bold and decisive!