The Manage IT Newsletter - Preparing for a future in IT:

This issue contains an interview with Mark Lutchen, author of "Running IT as a Business," and the current leader of the IT Business Risk Management Practice for PWC, where we explore future IT career opportunities.

Welcome to the June 2004 issue of the "Manage IT Newsletter." This monthly publication is a part mentoring and part coaching tool dedicated to helping IT managers enjoy a richer career experience so they can reach their full potential.

In this issue we will explore how you can prepare yourself for a career in the IT world of tomorrow as I interview Mark Lutchen, a former PWC Global CIO who led the successful integration of the Firm's IT across 150 countries during its merger. Mr. Lutchen is the current leader of the IT Business Risk Management Practice for PWC (http://www.pwc.com/itbrm) as well as the author of "Managing IT as a Business." If you are interested in growing your career in IT, I am sure you will find Lutchen's advice extremely valuable.

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With warmest regards,
Joe Santana,
Co-author Manage IT
www.joesantana.com
***************************In this Issue ****************************
* Focus Topic: Preparing for a future in IT
* IT Management News & Trends: Three articles on how you can increase your present and future value as an IT leader
* Tip Sheet: How to prepare for a CIO role
* Closing Comments and Announcements
*********************************************************************

--------------------------- Focus Topic -----------------------------
Preparing for a future in IT
- An interview with author Mark Lutchen, the current leader of the IT Business Risk Management Practice for PWC
By Joe Santana

I met Mark Lutchen a few months ago, when I was writing my HR.com article titled "How Can HR Help Companies Address the Need for New IT Management Competencies." After reading Lutchen's book and talking with him, I was convinced that he was articulating an important message of opportunity to future IT managers, CIOs and other who could occupy an emerging number of IT leadership roles.

In essence, Lutchen's message is about a transformation that can offer huge opportunities to IT professionals that anticipate and embrace the evolution of IT from "guild" to business practice. The balance of this article captures my interview with Lutchen where he defines this transformation, the forces that drive it and explains how IT professionals and managers today can prepare to benefit from it.

JS - Mark, why did you write "Managing IT as a Business?"

ML -Throughout my career, both as an operating CIO and as an advisor to other CIO's and business executives, it always astounded me that many IT professionals had never fully mastered the fundamental financial, organizational, communications, and relationship development disciplines learned in business school. I was equally astounded that many CEO's, COO's, CFO's and other corporate executives had such limited understanding of what actually happened on a day-to-day basis within an IT organization, often manifesting itself in a real fear of IT. Finally, the most astounding thing to me was the very real and inherent inability of both groups (IT people and business executives) to effectively communicate with and understand each other in the same 'language,' often resulting in monumental misunderstandings. Witnessing and helping companies deal with this phenomena over a period of 30 years is what prompted me to write "Managing IT as a Business," - almost as the IT "Rosetta Stone" - as a way of helping IT people and business executives better understand each others issues and needs.

JS - Where do you think we are now relative to the transformation of IT toward the "running IT like a business model?"

ML - There are some companies that understand the importance of managing their IT organization as a business, but not many. I believe we are early in the understanding and implementation of the process to move towards this model. But, make no mistake about it, there is no turning back, and there is no question in my mind that everyone will, in some manner, be moving toward managing IT as a business sometime in the future.

JS - Are there any events that you see driving the transformation now and in the future?

ML - Yes, several:

1. New ROI requirements. IT has typically been one of the top 3- 5 expenditures in organizations. After years of uncontrolled IT spending in the late 90's, today's executives require that IT expenditures show an ROI. IT spending is beginning to slowly increase, and is therefore getting examined more closely than ever before. This is requiring CIOs and IT management to think and act in new ways.

2. Senior executives are frustrated on many fronts. They don't see an alignment of IT spending and priorities with the business goals, they don't have visibility into the hidden IT business risks, and they are tired of IT failures, cost overruns, service delivery issues, and perceived lack of skills. This frustration is direct towards the CIO, leading him or her to either address these frustrations or be held accountable for the problems and the failures.

3. Regulatory compliance environment. Today's regulatory environment holds executive management personally accountable for the financial controls, including IT financial controls, in their organizations. No longer can they afford to not be fully cognizant of the spending and business risks associated with IT.

4. Trend to outsource. Increased focused on outsourcing, both on and offshore, is requiring IT organizations to broaden and intensify their management skills. No longer are IT organizations managing just operations, but they are now managing relationships - this is a new skill set for most IT groups and CIO's.

JS - What are the potential penalties for IT managers who do not properly re-tool?

ML - These managers can be easily "outsourced". Only IT personnel with a solid business and communication foundation will be able to function in a technical environment that is closely aligned with the business objectives. An inability to address these "skill gaps" in the so-called 'softer' management and business areas can be fatal to IT managers who continue to insist on remaining only within their traditional "technical cocoons."

JS - What IT organization career opportunities do you see emerging as a result of the transformation?

ML - Clearly, there will be several emerging career opportunities within IT organizations that focus more on the business management side of things. For example, there will be more roles focused on "Customer/Account/Relationship
Management" with the business units - so-called Business Unit Liaisons who will be skilled in effectively translating between IT and the business. In addition, there will also be CFO of IT roles, focused on providing the right level of visibility and transparency of IT spend and performance, with particular emphasis on IT business value metrics. There will also be enhanced IT HR/Career Development roles dedicated to helping IT professionals move their skills where they need to be on a continuous basis. Finally, there will be IT Marketing/Communications roles directed towards helping the CIO and IT organization to more effectively communicate with the business and also 'market' the value of the services IT provides.

JS - How much time do you think companies have in terms of ramp up time for completing this transformation?

ML - There are already a number of early adopters out there driving hard to ensure that their IT organizations are moving towards the "Managing IT as a Business" model. Others will surely follow. Those that get there first will become very attractive to the 'new IT professionals' of the 21st century, and they will establish themselves as the employers of choice for these business-and technology savvy professionals. Overall, however, I think we are probably looking at three to five year period over which these changes will evolve.

JS - What parting advice would you give to IT Managers today?

ML - The dawn of the 21st century is actually a very exciting period in the continuing evolution of IT as an integral part of business. It's a time of great change, especially related to how IT will be managed in the future. While technical skills provide an important foundation for IT professionals, those who are able to combine these technical skills together with business management fundamentals will be of the highest value to the organizations of the future. So, I would recommend to everyone that that they fully embrace the changes that are happening, as those changes will provide IT professionals with the biggest and best opportunities for future growth and success.

-------------------- IT Management News and Trends ------------------
This month, we offer you three select articles that look at ways that you can increase your present and future value as an IT leader.

An article that outlines the new IT manager competency requirements and focuses on how Human Resources can help companies address this need.
http://www.hr.com/HRcom/index.cfm/283/8AF72966-09C9-47E6-BEA9007CB39CFD03?ost=feature

An article by author Jeff Wuorio titled "8 Ways to Ready Yourself for Management"
http://www.bcentral.com/articles/wuorio/212.asp

An article that focuses on the value of being versatile and having a broad set of skills
http://techrepublic.com.com/5100-6300-5053961.html?tag=search

--------------------------- Tip Sheet -------------------------------
If you want to know how future CIO's should now prepare themselves for environments where the enterprise IT organization is run like a business, go to June 04 tip sheet at http://www.joesantana.com/freenewsandtips.htm

----------------- Closing Thoughts and Announcements ----------------
INTERESTED IN LEARNING MORE ABOUT MARK LUTCHEN'S BOOK OR BUYING A COPY?
Click (or cut and paste into your browser) the following URL http://www.amazon.com/exec/obidos/tg/detail/-/0471471046/qid=1086147426/sr=1-1/ref=sr_1_1/103-5453018-5712666?v=glance&s=books

WANT TO KNOW WHAT IT PROS AROUND THE WORLD THINK?
Join to the IT Professional World Wide network at http://itpww1-network.ryze.com (Membership continues to grow at a phenomenal rate and it is still free). Many members are using this network to find mentors, discover job opportunities, find candidates for open positions and much more.

WANT TO LEARN WHAT TO OUTSOURCE FOR TOP RETURN ON INVESTMENT?
Get your copy of the audio program titled "Doing more with less through IT Outsourcing," at http://store.mixonic.com/joesantana

WANT TO HELP YOUR FRIENDS LOOKING FOR ADVICE ON HOW TO FIGHT BURNOUT AND ACHIEVE PEAK PERFORMANCE
Have them visit www.joesantana.com and sign up for the free TIPS DRIVING PEAK PERFORMANCE EMAIL SEMINAR. Delivered over seven days, this program is packed with advice that can immediately be put to use by a rookie or a veteran IT manager. (HR pros will also find it a rich source of ideas they can use to coach IT managers).

NEED HELP QUICKLY BUILDING A PIPELINE OF CANDIDATES.
Contact EmployeeROI www.employeeroi.com/1-888-654-8845

I hope you enjoyed this issue of the IT Managers Newsletter. As always, your feedback on topics that interest you is always appreciated.

JS