Henri Fayol
1841-1925
Global means:
- Having a presence in other countries
- Standardization
- International focus: reduction of ties to any one
country and community
- Minimization of country-oriented images and values
- Having acquisitions or alliances in other countries
1
Catalysts for Global Software Teams:
Henri Fayol
1841-1925
1. Specialized Talent
Send the work to where the resources are
2. Mergers and acquisitions
Enter a foreign market quickly
3. Reduction in cost
Reduce labor costs offshore
4. Global presence
Participate in global markets
5. Reduction in time-to-market
Follow-the-sun development
6. Proximity to the customer
Establish an ongoing relationship with key customers
2
Henri Fayol
1841-1925
Five forces that make Global IT management very difficult:
1. Geographic dispersion
2. Loss of communication richness
3. Coordination breakdown
4. Loss of “teamness,” the sense of belonging to a team
5. Cultural differences
3
Global Software Teams Problems
Henri Fayol
1841-1925
Probability of communication
at least once a week
• Dispersion
30
20
10
10
25
50
100
Separation distance (in meters)
4
Loss of Communication Richness
Henri Fayol
1841-1925
FACE-TO-FACE
SENSUALNESS
VIDEO CONFERENCING
TELEPHONE
EMAIL
US MAIL
INTERACTIVENESS / IMMEDIACY
5
Coordination Breakdown:
Henri Fayol
1841-1925
Increasing Complexity with Larger Teams
2=1
4=6
6 = 15
6
Coordination Breakdown:
Team Size / Number of Relationships
Henri Fayol
1841-1925
NUMBER OF
COMBINATIONS =
n * (n - 1) / 2
n = size of the project team
Team Size Relationships
2
1
3
3
4
6
5
10
6
15
7
21
8
28
9
36
10
45
11
55
12
66
7
Loss of Teamness
Henri Fayol
1841-1925
TO BE A TEAM YOU MUST HAVE:
• SHARED GOALS
• SHARED CULTURE
• SHARED PERSONAL RELATIONSHIPS
8
Loss of Teamness
Henri Fayol
1841-1925
TEAM BUILDINGTRUST – CLASSIC DEVELOPMENT
PERFORMING
TEAM WORKS TOGETHER
TOWARD A COMMON GOAL.
CONFLICTS ARE HANDLED
CONSTRUCTIVELY
NORMING
TEAM BEGINS TO FORM NORMS,
ROLES, AND PROTOCOLS FOR
WORKING TOGETHER
STORMING
CONFLICT BREAKS OUT OVER
ROLES, OBJECTIVES, AND TASK
ALLOCATION. DIFFERENT
PEOPLE ARE PURSUING
DIFFERENT GOALS.
FORMING
TEAM GETS TOGETHER AND
GETS TO KNOW EACH OTHER
9
Loss of Teamness
Henri Fayol
1841-1925
Comparison of Behavior/Strategies of High
and Low Trust Teams
Behavior/Strategy
High-Trust Teams
Low-Trust Teams
Style of Action
Proactive
Reactive
Focus of Dialog
Task Output Driven
Procedural
Team Spirit
Optimistic
Pessimistic
Leadership
Dynamic
Static
Task-Goal Clarity
Team’s Responsibility
Individual’s Responsibility
Role Division and
Specificity
Emergent and
Interdependent
Assigned, Independent
Time Management
Explicit/Process-Based
Nonexistant
Pattern of Interaction
Frequent, Few Gaps
Infrequent, Gaps
Nature of Feedback
Predictable, substantive
Unpredictable,
nonsubstantive
10
Henri Fayol
1841-1925
YOUR EXPERIENCE
IS THE CLASSIC MODEL OF TRUST CONSISTENT WITH YOUR
EXPERIENCE AS A TEAM MEMBER – AT DEPAUL OR ELSEWHERE . . .
TOM PETERS (IN SEARCH OF EXCELLENCE) SAID:
A CUSTOMER RELATIONSHIP IS STRONGER AFTER A PROBLEM
HAS BEEN HANDLED WELL THAN IF NO PROBLEM HAD OCCURRED.
IS THIS CONSISTENT WITH YOUR EXPERIENCE?
11
FACE-TO-FACE MAINTAINS/RENEWS TRUST
Henri Fayol
1841-1925
MILESTONE MEETING / CELEBRATION
SHARE THE VISION
WHAT’S THE GOAL OF THE PROJECT AND HOW DOES EACH PART
OF THE TEAM FIT IN
SOCIAL
GET TO KNOW ABOUT EACH OTHER MORE / AGAIN.
BUILD SHARED EXPERIENCES.
12
CULTURE: BELIEF/VALUES/COMMUNICATION
Henri Fayol
1841-1925
Reward
BELIEFS
Life/Death
Nature
History
Religion
VALUES
Competition
Independence
Risk-taking
Group harmony
Cooperation
Age-seniority
Information
Devotion
Interrelationship
Family harmony
Formality/status
COMMUNICATION
Social organization
Nonverbal communication
Emotional response
13
Henri Fayol
1841-1925
People who speak:
3 languages:
trilingual
2 languages:
bilingual
1 language:
American
14
Henri Fayol
1841-1925
In Heaven,
The Police are British,
The Cooks are French,
The Lovers are Italian, and
It’s all Organized by the Germans
In Hell,
The Police are French,
The Cooks are British,
The Lovers are German, and
It’s all Organized by the Italians.
15
CULTURE AND SUBCULTURES
Henri Fayol
1841-1925
NATIONAL CULTURE
PROFESSIONAL CULTURE
CORPORATE CULTURE
FUNCTIONAL
CULTURE
RELIGION?
TEAM
CULTURE
RACE?
GENDER?
16
DIMENSIONS OF IT CULTURE – Exercise
Henri Fayol
1841-1925
Rank these countries (USA, Japan, Hong Kong, Germany) and these
characteristics from highest to lowest.
• Revering hierarchy
Example:
USA
Japan
Hong Kong
Germany
• Individualism/collectivism
• Work-life/Personal-life
• Risk avoidance
• Long term orientation
17
110
100
Henri Fayol
90
1841-1925
80
70
60
50
40
30
20
10
0
USA
Japan
Hong Kong
Lo
ng
te
rm
is
k
R
kli
fe
W
or
H
ie
ra
rc
hy
In
di
vi
du
al
i ty
Germany
18
DIMENSIONS OF IT CULTURE and IT
Henri Fayol
1841-1925
• Revering hierarchy
‒ Organization of the IT Department
• Individualism/collectivism
‒ IT Reward Systems
• Work-life/Personal-life
‒ Online, Oncall, 24x7
• Risk avoidance
‒ Quality v. schedule
‒ Technological change
• Long term orientation
‒ Technological change
19
FACE-TO-FACE BUILDS TRUST
Henri Fayol
1841-1925
KICK-OFF MEETING
SHARE THE VISION
WHAT’S THE GOAL OF THE PROJECT AND HOW DOES EACH PART
OF THE TEAM FIT IN
METHODOLOGY
WHAT METHODOLOGY [PROCESS/FRAMEWORK] WILL WE USE
COMMUNICATION
HOW SHOULD THE TEAM COMMUNICATE
CULTURE
SOCIAL
IN WHAT WAYS ARE WE DIFFERENT AND IN WHAT WAYS ARE
WE THE SAME
GET TO KNOW ABOUT EACH OTHER. BUILD SHARED
EXPERIENCES.
IF YOU TELL PEOPLE CLEARLY WHAT YOU WANT YOU HAVE A
MUCH BETTER CHANCE OF GETTING IT THAN IF YOU DON’T.
20
Henri Fayol
1841-1925
OUTSOURCING
21
Outsourcing
Henri Fayol
1841-1925
• a management tool (a tool makes work easier and/or more productive)
• emphasizes what is to be done, rather than how or who
• task-level management responsibilities rest with supplier
• work takes place mainly/entirely off site
• supplier provides all resources
• employee relations managed by supplier
• typically paid by performance not time
22
Henri Fayol
1841-1925
OUTSOURCING DRIVERS
• RE-FOCUS ON “CORPORATE CORE COMPETENCIES”
- SHIFT IN BUSINESS STRATEGIES AWAY FROM DIVERSIFICATION
- SENIOR EXECUTIVES VIEW IT AS A NON-CORE ACTIVITY
• PERCEPTION OF IT AS A COST BURDEN
-UNCERTAINTY ABOUT IT’S VALUE
-IT FAILED TO DELIVER THE PROMISE OF COMPETITIVE ADVANTAGE
23
Outsourcing Drivers
Henri Fayol
1841-1925
• Cost savings (especially offshore)
• Outside the core business
• Functionally discrete
• Lack of internal skills
• Political compromise
24
Henri Fayol
1841-1925
FACTORS FAVORING IT OUTSOURCING
• TECHNOLOGY CHANGE EXPANDS OPTIONS
- MANY INFORMATION PRODUCTS/SERVICES BECOME COMMODITIES
- SEPARATION OF MANAGEMENT, OPERATION, AND DELIVERY OF INFORMATION SERVICES
- FIRMS CAN NOT COPE WITH RAPID ADVANCEMENT OF TECHNOLOGY AND SKILL REQUIREMENTS
• CHANGES IN THE MANAGEMENT OF IT
- DIFFICULTY IN MEASURING BENEFITS FROM AN IT INVESTMENT AND ITS COST
CIOs TAKING A BUSINESSVIEW, NOT JUST A TECHNICAL VIEW
DECENTRALIZATION OF THE IT ORGANIZATION
• INDUSTRY LEVEL CHANGES
- RAPID TECHNOLOGICAL CHANGE CREATED OVER CAPACITY IN CERTAIN FUNCTIONS
- THE NUMBER OF OUTSOURCING VENDORS INCREASED OFFERING PRICE COMPETITIVE SERVICES
- OUTSOURCING VENDORS HAVE FLEXIBILITY IN RECRUITING AND REWARDING TECHNICAL TALENT
• FIRM LEVEL CHANGES
- CORPORATE IMPERATIVE TO REDUCE COSTS
- GLOBALIZATION OF BUSINESS CREATES NEW NEEDS
25
Henri Fayol
1841-1925
• TOTAL
3 CATEGORIES OF OUTSOURCING
OUTSOURCE ALL IT
• SELECTIVE
OUTSOURCE SELECTED ACTIVITIES
• TRANSITIONAL
OUTSOURCE “LEGACY” SYSTEMS WHILE
WORKING ON NEW SYSTEMS
26
TOTAL OUTSOURCING
Henri Fayol
1841-1925
ADVANTAGES
-CONSISTENCY AND STABILITY WITH THE SAME VENDOR
FOR MANY ACTIVITIES
-LOWER TRANSACTION COSTS
DISADVANTAGES
-VULNERABLE TO VENDOR MANIPULATION OF PRICING AND MAINTENANCE COSTS
-VULNERABLE TO LOSS OF VENDOR SUPPORT
----------------------------------------------------------------------------------------------------
SELECTIVE OUTSOURCING
ADVANTAGES
-SELECT BEST-OF-BREED FOR AN ACTIVITY
-CREATE A COMPETITIVE ENVIRONMENT
-FLEXIBLE; ADAPT TO CHANGE
-CAPITALIZE ON ORGANIZATIONAL LEARNING
-LESS RISKY THAN TOTAL OUTSOURCING
DISADVANTAGES
-MULTIPLE VENDORS TO MANAGE
-HIGHER TRANSACTION COSTS ASSOCIATED WITH MULTIPLE EVALUATIONS AND
CONTRACT NEGOTIATIONS
27
Henri Fayol
1841-1925
TRANSITIONAL OUTSOURCING
ADVANTAGES
-OUTSOURCE LEGACY SYSTEMS MAKES STAFF FREE TO FOCUS ON NEW SYSTEMS
-LEGACY SYSTEMS ARE MATURE AND CUSTOMERS AND VENDORS UNDERSTAND
REQUIREMENTS AND CAN WRITE A SOUND CONTRACT
DISADVANTAGES
-VULNERABLE TO VENDOR MANIPULATION OF PRICING AND MAINTENANCE COSTS
-VULNERABLE TO LOSS OF VENDOR SUPPORT IF NEW SYSTEM IS DELAYED
28
MEASURES OF OUTSOURCING SUCCESS
Henri Fayol
1841-1925
-TARGETED COST SAVINGS REALIZED OF BETTER
-SERVICE LEVELS MAINTAINED OR IMPROVED
-USER MANAGEMENT SATISFIED
-FEW CLIENT/VENDOR DISPUTES
-VENDOR REPRESENTATIVES RESPONSIVE/ATTENTIVE
-OUTCOMES MATCH OBJECTIVES
-LIKELY CONTRACT RENEWAL
29
Popular Outsourced Activities
Henri Fayol
1841-1925
• Application development
• Data center
• Desktop/personal computers
• Network (e.g., LANs, WANs)
• Support services/help desk
• Training
30
OUTSOURCING PITFALLS
Henri Fayol
1841-1925
• Cumbersome transition into and coming out of an
outsourcing relationship.
• Incomplete or vague contracts.
• Lack of an infrastructure for supporting an
outsourcing relationship.
• Negotiating a contract with an unsuitable vendor.
• Poor communications with vendors.
31
PERSISTENT OUTSOURCING PROBLEMS
Henri Fayol
1841-1925
• Cultural differences that lead to miscommunications and
a lack of trust
• Time zone differences
• Poor English language skills
• Strange foreign work-hour regulations
• High employee turnover in India
• Difficulties in arranging visas for foreign professionals to
work in the United States
• An offshore unit’s lack of domain knowledge
• An unreliable telecommunications infrastructure.
32
Henri Fayol
1841-1925
Outsourcing should not occur if:
• the service is mission critical
• the service can be done more effectively in-house
• outsourcing cannot provide a savings of five percent
or more
• fear exists over losing controls.
33
THE OUTSOURCING PROCESS
Henri Fayol
1841-1925
34
STAGES OF OUTSOURCING
Henri Fayol
1841-1925
35
Henri Fayol
1841-1925
Offshore Outsourcing Readiness vs. Attractiveness
High
Offshore
Readiness
Low
Ready
but not
attractive
Not attractive
and not ready
Low
Ready and
attractive
Attractive but
not ready
Offshore
Attractiveness
High
36
Who is Henri Fayol?
A French engineer who:
Henri Fayol
1841-1925
Defined the functions of management:
• Planning • Organizing • Leading • Controlling
And identified 14 principles of management:
• Specialization/division of labor
• Authority with responsibility
• Discipline
• Unity of command
• Unity of direction
• Subordination of special interests
• Remuneration
• Centralization
• Chain / Line of Authority
• Order
• Equity
• Lifetime jobs (for good workers)
• Equity
• Esprit de corps
37
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