Getting that IT Culture Back

By Jodi Mardesich

Business leaders expect IT departments to improve operational efficiency, yet they are frequently changing directions and shifting demands. Mergers, reorganizations, a move to outsource, or even a shift from outsourcing back to in-sourcing can often result in management changes. Such changes disrupt the flow of operations and processes in the IT department. Afterward, a CIO needs to focus on rebuilding the IT department's culture in order to get the operation running smoothly again.
 
Management changes are on the rise. According to Richard Jacovitz, senior vice president for Liberum Research, there were 2,645 management changes across corporate boards, C-level executives, and vice president-level positions in April. This number was up from 2,531 in October and was more than double the 1,170 tracked in April of 2005.

Often these internal changes, hirings, firings, resignations, or retirements involved CEOs or CFOs. In only 11 cases did the management change involve a CIO, according to the Liberum Research. But virtually all management changes can wind up impacting the CIO and the direction of IT.

When management changes are made to align with a new IT or overall business goal, whether at the top level or in middle management, it can have a direct impact on the troops who run the organization's day-to-day IT functions. A management change can impact IT staff by moving people into new roles, under new managers or working with new processes, and these changes can take a toll on employees.

"After a merger, acquisition, or outsourcing agreement, a 'new' IT must be formed," says Alex Cullen, an analyst with Forrester Research.

Cullen says staffers usually react to change in a few ways: some adapt quickly, some take a "wait and see"  attitude, and others resist change, either actively or passively. 

"They take the approach that the old way was the right way, and why change things?" Cullen says. "They get protective of their turf. Informal networks break down, efficiency and collaboration evaporate, and work quality erodes."

Before making changes, C-level executives need to make sure the changes are justified from a business sense, because communicating the business needs behind the change is crucial to successfully influencing positive IT culture changes. Workers also need to know what's in it for them. Some workers worry about what they have lost as a result of the change if management doesn't communicate to them that there is a personal gain.

"Their jobs have changed, which changes how they see themselves in their jobs," Cullen says.

Cullen has outlined a series of steps that should be taken by CIOs managing through change who want to protect their IT culture and get operations running smoothly as possible through the transition. In taking these steps, CIOs can explain the need for the changes and communicate how they will affect employees, Cullen says.

• Rebrand IT Staffers need to identify with the new organization they are part of, and not the former one. "Give the new organization a new mission and a corresponding new name," Cullen says. This could include new business cards to reflect the organizational change with new titles.
• Communicate the rationale for the change Not only do employees need to know what the new business goals are, they need to understand why the previous organization wasn't up to the challenge.
• Define success and measure progress After stating what the critical success factors are, follow through with a program to measure success.
• Communicate results "Communicate the definition of success broadly and frequently, and include both successes and shortfalls in these tailored communications, both inside and outside IT," Cullen says.
• Tell staff what's expected, and what's in it for them Tie new goals to employee performance appraisals as quickly as possible.
• Develop new processes Work with key influential staffers to define new operational processes.
• Ask for a commitment When it's appropriate, ask people to make a decision to commit. "Recognize that not everyone will want to stay, and be prepared, through cross-training or team structuring, to adapt to attrition," Cullen says.

Strong leadership in the midst of change is essential. "Culture does not adapt smoothly in the absence of leadership or when intentions and expectations are unclear or changing," Cullen says. And prepare for an on-going effort to change and protect IT culture. Changes take time, and staffers expect commitment from management. After the announcement of the changes, follow through on these changes to show commitment, Cullen suggests.

Consistent communication will go a long way to reassure employees. People who are affected by changes need to be reassured with consistent messages. "Make sure that a consistent message is delivered about the change rationale, benefits, and expectations of staff," Cullen says.

The potential for miscommunication -- whether intentional or unintentional -- is enormous, says Cassio Dreyfuss, an analyst at Gartner. "You will be dealing with several interested parties, including the business, your IT organization, the people in transition, the service provider, and maybe even clients and suppliers, with different perspectives and interests," Dreyfuss says. "A well-designed and managed communication program will greatly reduce this risk."

Take care to protect workers threatened by changes.  "At the end of the day, people are what matters," says Dreyfuss. "People are the drivers, supporters, resisters, and blockers of the transition." Especially in delicate situations like changing to outsourcing, or when outsourcing is brought back in-house. "The level of change will be very deep, and people, who had already lost all their references and ties when they were initially transitioned to the service provider, will be shaken at the perspective of moving back in." 

Dreyfuss recommends using incentives tied to specific objectives to motivate the right employee behavior.

"You will want to identify specific transition objectives and motivate not only the people who are coming back, but also those who are receiving them into the organization," Dreyfuss says. "A typical initiative would be to offer incentives related to specific tasks established in the transition plan."

Management changes in organizations are occurring more frequently as companies try to remain nimble and take advantage of the positive impacts that IT can have on the business. Managing through change is essential to ensure employees are aligned with business goals as quickly as possible.

Jodi Mardesich writes about business and technology. Her writing has appeared in The New York Times, Fortune, San Jose Mercury News, Salon, Slate, and Yoga Journal.