Tag: innovation

  • Changing Compensation Before it Kills Success

    Changing Compensation Before it Kills Success

    Have you ever seen the sign, “Will work for food”? If you deconstruct the premise a bit, we all work for the rewards systems that interests us. We “trade” our labor (ideally, focus our passion), for a set of acknowledgements that range from survival to pride. And ultimately it is our employer (whether the boss or the board of directors) who decides what our rewards systems will be.   That is the common sense part. But when something such as DevOps enters the picture, it alters traditional thinking throughout an organization, and the ripple effects should (and eventually will) reach the HR department.

    The most immediate effect of DevOps on HR occurs around talent acquisition. Finding a qualified DevOps engineer that it is possible to afford—and the company can retain—becomes the unicorn of recruiting departments from one coast to the other. The alternative is creating or adopting a training curriculum that can move a traditional programmer or engineer into a fully qualified DevOps engineer. Of course, advice varies on exactly what that is, and if it’s successful, your organization becomes a feeding ground for every other competitor to poach your folks right after training.

    Because this HR acquisition problem is so great for most organizations, they can overlook some other underlying issues that continue to occur. These problems have always been there, but DevOps brings a spotlight to them that did not exist prior to its implementation. As stated earlier, we “do” what we are “paid” to do. In organizations that innovate in the software discipline, we have always “paid” that entire division to innovate. Prior to DevOps, the pace of that innovation, was slow and manageable. Once DevOps begins to take hold, the pace of innovation begins to enter the 400mph superhighway, where traditional control mechanisms no longer work.

    In itself, the success of the controls over change—transitioning to a high rate of speed—will be determined by how we implement DevOps. It is the other half of DevOps that needs some focus. While our Dev organization is cranking out change exactly as we have always paid them to do, our Ops organization traditionally has been paid for exactly the opposite characteristic. We pay our Ops organization for stability. We want the trains to run, on time. We do not want a 2 a.m. phone call from an angry CEO—or, much worse, an angry customer—because our operations have “broken.” And, of course, the No. 1 culprit for causing breakage in operations is … [drum roll, please] … “change.”

    In the yesteryear of Waterfall construction and manual delivery, our Ops teams had time to digest what change was coming, prepare for it, adjust to it and get it implemented smoothly (or at least pretend to). In the current day of Agile construction and DevOps delivery, I might have moved six new builds into production in the time it has taken you to read this article. Ops has no time anymore to digest and prepare for change, so if the quality of that change is not significantly better than it used to be, the angry-phone-call potential goes up exponentially. And yes, there are technical remedies to ensure quality (I will reserve discussing those for another time).

    But the tradition of how we compensate remains in place. We comp Dev to innovate, and we comp Ops to remain stable. This makes not only silo thinking, but also mortal enemies during the adoption of DevOps into an organization. All of a sudden, each views the other as potentially causing harm to their ability to continue earning compensation. And they are right to see it that way, as HR has yet to alter the models to create partnerships instead of combatants.

    To fix this, the compensation models must be adjusted to pay Ops teams to get involved in the software development lifecyle (SDLC) process from the upfront. The Ops teams should have extensive visibility into the testing cycle of new changes and how that works, and become the organization always asking Dev how it can “prove” its change works. The Ops teams must become the in-process auditors of the Dev teams. This keeps the Ops teams from being compensated for conditions that only exist at the end of the SDLC process, where they feel “dumped-on” by more rapid change delivery. The new comp model for Ops must focus on the number of changes successfully introduced into the production environment (i.e., the quantity of change that works), not just the stability they traditionally maintain.

    The Dev team, on the other hand, must begin to be compensated only for after-action success. Dev teams must look at their code after delivery to production—and only if the code is validated (i.e., it works), is adopted by its intended customers (a completely different angle) and performs within expected timing parameters (i.e., it scales well). This becomes the criterion that is the foundation of the Dev team’s measurement of success. This puts an Ops set of glasses on the programmer instead of making him blind to those business issues. The Ops teams become the key advisors to the Dev teams on how to prove quality. And the joint discussions lead to a more sensible monitoring strategy, which is needed across the board.

    There’s Compensation, and Then There’s the Bonus

    Changing the point of view for the compensation is only a start. Next up: Begin to alter bonus compensation to a more lean model. Instead of large annual bonuses, where the basis for achievements often are colored by my boss’s mood over the last six weeks, organizations should increase the frequency of bonus payouts to match the duration of epic completions—or, if possible, of sprints. The idea is to tie meaningful bonus payouts to the length of time it takes to produce only successful change. If the change works, the company offers additional bonus comp; if not, then the team must improve to secure the next bonus opportunity.

    Tie the bonus duration (whether to epics or sprints) to meaningful business impacts. In this way, each contributing employee understands “why” the work he or she offers has meaning to the company or its customers. This kind of bonus system allows for extreme flexibility in the priority of what teams work on throughout the year. Bosses can change priorities or shift them to match what executives see on the horizon. Employees are not tied to some list of annual work accomplishments that in a DevOps rapid world they had little shot of achieving unless they did them in a week. Instead, they have real-world goals, tied to real world time frames, where employees see the reward as they succeed at the work.

    Organizations can add even more bonus comp this way if over-and-above work is needed. And “if” organizations compensate both Ops and Dev only for successful change (which implies quality in the SDLC and stability in Ops) they create a new rewards system that enables adoption rather than repel it. Beyond finding the talent they need, organizations need innovative methods of retaining them. Substantial rewards in real time might just be one way to do that.

    Finally, being able to see the business impact of the change the joint effort of Dev and Ops teams produce allows for better ability to offer “appreciation” ideas as well. A simple “thank you” goes a long way in employee satisfaction, and when the executive and the team member understand “why” they are being appreciated, they go even longer. DevOps is not just a catalyst reserved to the “techies” who practice it; DevOps is instead a new way of thinking about how a company innovates. This kind of infectious thinking can easily spread to tertiary support organizations such as HR and Legal, if you let it.

    To continue the conversation, feel free to contact me.

  • Digital Transformation Strains Traditional IT

    Digital Transformation Strains Traditional IT

    It’s hard to believe, but it’s almost been 13 years since Nicholas G. Carr wrote his famous essay, “IT Doesn’t Matter.” In that column Carr argued that IT had become so pervasive in enterprises and so widely used that it had essentially become a commodity and was no longer useful as a tool for business differentiation.

    “Behind the change in thinking lies a simple assumption: that as IT’s potency and ubiquity have increased, so too has its strategic value. It’s a reasonable assumption, even an intuitive one. But it’s mistaken. What makes a resource truly strategic—what gives it the capacity to be the basis for a sustained competitive advantage—is not ubiquity but scarcity,” Carr wrote.

    If that sentiment was accurate then, and I wasn’t convinced it was at the time, it’s not accurate anymore. Today, how enterprises are building and implementing IT is a clear differentiator when it comes to delivering apps business users and customers need and want, built and designed in ways they want to interact, and delivered in a timely manner.

    According to a recent report published by Salesforce, “2016 State of IT,” IT leaders are focusing on mobile apps, migration to the cloud, as well as building adequate cybersecurity/incident response, customer-facing digital apps and productivity apps. The report found that 68  percent of respondents said that they are increasing their budgets on mobile apps, cloud and security. The lion’s share of respondents also plan to increase their budgets allocated to cybersecurity (63 percent) while 62 percent will spend more on employee productivity apps.

    The report survey, conducted at the end of 2015, is based on responses from 2,255 CIOs and IT leaders from within the United States, Canada, Brazil, Australia, Japan, France, the United Kingdom and Germany. One of the first things to leap out at me from the results is, based on my interviews with many enterprise users, this increased focus on mobile apps and employee productivity apps will certainly be welcome in most enterprises—mobile app backlogs are a problem in many organizations today, as we covered in “Make ‘Mobile First’ an Innovation Strategy,” “Mobile App Development Will Soon Grow More Enterprise-Focused,” and “For More Mobile Wins, Enterprises Must Find their MVPs.”

    As IT leadership had to do in every other transformative period (and cloud, mobile, data analytics are all transformative) such as the displacement of mainframes by PCs in the 1980s, the rise of the local area network and the arrival of the commercial web in the 1990s, IT is at the center of business strategy. CIOs and IT leadership need to make sure they get themselves out in front of these trends and align the services technologies they are delivering with what their users need. According to the report, this need for IT to drive innovation is forcing leadership to rethink their IT organizations. And, as a result, according to the “State of IT” report, to help address this, 60 percent of enterprises now have a relatively new position in the chief digital officer.

    Of course, as this push by enterprises continue, the competition for talent heats up. According to the “State of IT” report, the IT skills demand gap is widening: there just isn’t enough talent to go around. I expect this to grow worse as these enterprise budgets for mobile apps only continue to grow in the years ahead. And one-third of those surveyed in this report said that they are having a painful time keeping skills relevant with emerging trends in cloud, mobile and data analytics. Seventy­-two percent say talent/IT skills development and training will be absolutely critical or very important for their team in the next five to eight years.

    According to this eWeek story, “How the Skills Gap Is Threatening the Growth of App Economy,” while nearly 80 percent of respondents of a CA-sponsored study, “The Battle for Competitive Advantage in the App Economy,” said that becoming a “software-driven enterprise” is a top priority, the biggest challenge they have in realizing that goal is the skills shortage. The top four critical skills in that survey close resemble the findings in the “State of IT” survey: data science, collaboration, DevOps and APIs.

    The research firm Gartner predicts that by the end of 2017 demand for mobile app development services will grow no less than five times faster than the capacity of internal IT organizations’ deliver mobile apps. With steady mobile phone sales continuing to fuel demands for enterprise mobile apps, the result will be, according to Gartner analyst Adrian Leow, that enterprises will have a hard time rapidly developing, deploying and maintaining mobile apps to meet demand because of the scarcity of developers with good mobile coding and development skills.

    “Organizations increasingly find it difficult to be proactive against competitive pressures, which is resulting in their mobile apps becoming tactical, rather than strategic,” Leow said in this statement. “We’re seeing demand for mobile apps outstrip available development capacity, making quick creation of apps even more challenging.”

    IT leaders are also seeing demand outstrip supply of those with skills in IT security and data engineering and data science—and there’s no sign of a letup in any of these disciplines. Considering all of that, and what Carr write 13 years ago, parts of IT may very well have become commodities—especially at the infrastructure layer of the IT stack. Just don’t try and sell that view to anyone trying to clear their mobile app backlogs or get the most value out of their data today. They’re too busy trying to keep up and hopefully innovate a little to have time to listen.

  • The IT mandate: Be a catalyst of business innovation

    The IT mandate: Be a catalyst of business innovation

    On the heels of their recent study, Accelerating Business Transformation Through IT Innovation: Getting the Business Leader Take on the IT Change Mandate, we had a conversation with Dave Murray, head of thought leadership at the BPI Network. The study found that IT organizations increasingly want to use technology to drive innovation and business growth, and a big part of that is the ongoing re-tooling their data centers with the public and on-premises and managed cloud services.

    The survey found, as covered in our Enterprises still struggle to leverage IT as tool to innovate, that while about 70 percent of those surveyed by BNI Network believe technology has become “far more important” to their business, 52 percent of respondents believe that their IT organizations are poor or just making progress. Only 42 percent say their IT groups are doing a good job of becoming a more strategic.

    To get a sense of what is going on behind the survey, here is our Q & A with BNI Network’s Dave Murray.

    devopsy.kinsta.cloud: Your recent survey had interesting findings regarding how business leaders today view technology as important when it comes to innovation.  

    Murray: We found that 7 in 10 feel that technology is far more important to their business today than it was just five years ago. And we think that’s very, very significant.

    devopsy.kinsta.cloud: It is very interesting. How do you compare this to earlier times when technology was also viewed as very important to business innovation, such as the late 1990s when eCommerce was taking hold and enterprises were opening up all of their backend data to the Web? Do business leaders have more of a sense of urgency now, or do they feel the pace of change is more rapid?

    Murray: I believe what they’re telling us is that they see technology today as more essential to business growth, to new business ventures, to the way they interact with customers than ever before in their experiences. And so the movement towards mobility, the movement towards digital business, the movement towards big data are all delivering real strategic value, and is really driving and enabling new competitors in their markets. So they see the need to get on top of technology as never before.

    We did a study not long ago that looked at the impact of new business starts and new digitally driven companies, and we found that there was just a very significant recognition that these new ventures, technology-driven ventures, were disrupting traditional markets where business executives were operating. So I think there are a lot of components to why this is becoming more and more important to business executives.

    devopsy.kinsta.cloud: Technology is changing so fast now with mobility and cloud computing, and it looks like IoT is going to be a real thing, that the pace of change of technology is accelerating, so that would probably be a catalyst.

    Murray: Absolutely. I think that’s part of that urgency. There’s a real sense that the game is changing more rapidly than ever before, and that they need to get on top of it as executives. And one of the findings is that business executives say they’re spending more of their time trying to understand the strategic implications of technologies than ever before. Which new ventures and new business opportunities within companies are virtually always now reliant on a technology to make them work. And so they’re trying to get on top of those strategic needs.

    devopsy.kinsta.cloud: It also seems that the survey picked up on a long-standing challenge in enterprises and that’s having a tight coupling between the need for innovation and technological transformation, and the ability to actually execute.

    Murray:  I think that one of the questions we asked was, “What do you see as the key metrics for measuring the performance of IT within your organizations?” And this idea of reliability, scalability, and security, the execution of the infrastructure is still the number one issue. But it’s closely followed by strategic, more business-oriented issues like being able to bring new ideas and new thinking to the table about how IT can improve the business and create new opportunities. And then the speed with which they can deliver on those new ideas with applications and faster development of new services.

    So I think there’s a critical need for the expertise to maintain that infrastructure and obviously security and scalability are critical. But then also to more effectively collaborate with business, more effectively understand customer and customer needs, and come up with the architectural designs and applications that can meet those needs.

    devopsy.kinsta.cloud: Do you see this as kind of a do-or-die situation for companies that don’t master how to innovate with technology, or will they pay a heavy price for not being able to do so?

    Murray: I think companies that do not figure out how to make their technology and their IT organizations and partnerships more effective at driving innovation and creating a more agile and responsive IT organization and infrastructure that can respond to business change are going to be in big trouble in the years ahead, without a question.

    I think what we’re seeing is in virtually every industry, their technology is becoming, truly becoming part of the business and a major strategic driver of customer acquisition, the business model, the way the company operates, and I think that that’s going to continue to escalate. I think we’re always ahead of ourselves in terms of what we know technology can do, and then actually making it happen.

  • DevOps Drives Innovation, Enterprise Differentiation

    DevOps Drives Innovation, Enterprise Differentiation

    It’s hard to believe that it’s been more than a decade since Nicholas Carr wrote his controversial article “Does IT Matter,” where he argued that IT had become such an integral part of business that IT disappeared into the infrastructure in the way roads, rails, electric utilities, and engines have in industry. IT, like such infrastructure, became so commonplace that it no longer provided a competitive advantage.

    While Carr nodded to the transformative nature of cloud computing, he didn’t see the competitive advantage made possible by businesses that could develop rapidly and innovate. And that’s at the heard of what DevOps, and the associated processes and collaboration is all about. And enterprises that are able to identify opportunities and rapidly innovate using IT more effectively than their competitors would succeed.

    However, to succeed, IT investments need to be viewed as more than just ways to cut costs in applications or IT infrastructure. IT has to be looked at as a way to actually drive innovation. And DevOps itself needs to be viewed as more than just a way to reap increased efficiencies out of existing processes and technologies: but as a way to also more tightly couple business needs with IT efforts. One of the most effective ways to do this is to build applications that matter to business users.

    When it comes to building great business applications, enterprises often don’t get apps right – however that is a gap DevOps can help to close. When it comes to building apps, organizations often try to build the same apps on mobile devices that they’ve been providing on desktops for years. Or, they try to build applications that attempt to accomplish too much, and end up being overly complicated and largely unused as a result.

    “Businesses don’t always get apps built right,” says Brian Katz director, head of end user experience and innovation at Sanofi. “In fact it’s common that they don’t. They try to develop complicated apps that people don’t actually use instead of developing apps that users really need,” says Katz.

    “If good app design isn’t part of the equation, all you get is operations and development tools and processes that are optimized to deliver poor app quality,” says Katz. “Design isn’t always part of DevOps, but I think it should be. But design is one of those things that is critical to driving innovation, but people don’t always think about it that way,” he adds.

    One way DevOps can help address app development speed bumps is to make sure that these teams are integrated more closely with those who are designing the apps and know what the end users want to do – and how they want to do it. This is especially true when it comes to mobile development, when users may have seconds to input or grab data while they are on the go.

    Chris Cera, CEO at mobile and web product development firm Arcweb agrees, and says that testing and design are crucial to building the apps users want to use and to driving IT innovation. “You want to test the user interface and get feedback. It’s so crucial to developing the apps that will not only be apps users want to use, but it’s the key to driving innovative design too,” says Cera.

    Those enterprises that do manage to successfully integrate great app design with their DevOps efforts will prove themselves formidable competitors in the years ahead. “The organizations that embrace DevOps are seeing what good happens when the business and IT collaborate, and in the years ahead we will probably see more technology leaders show how IT can lead the organization forward,” says Gene Kim, co-author of The Phoenix Project: A Novel About IT, DevOps, and Helping Your Business Win.

    The data are starting to prove such claims valid. According to the 2014 State of DevOps Report from Puppet Labs, DevOps enterprise adoption is increasing and those organizations that embrace DevOps are deploying code 30 times more frequently and with half as many failures as non-DevOps enterprises. That data helps to support the findings of a CA Technologies study published last year, TechInsights Report: What Smart Businesses Know About DevOps, which found that respondents claim to experience a 17 to 23 percent improvement in certain business outcomes, such as increased revenue, and faster time-to-market.

    That all certainly sounds like IT as a way to innovate and differentiate. While the day will come when “IT Doesn’t Matter” – that’s a time that is likely decades away.

  • DevOps Can Be Your Fountain of Youth

    DevOps Can Be Your Fountain of Youth

    There is a different, almost magical dynamic, at a startup that seems to fade away over time as companies establish themselves. One of the benefits of DevOps, though, is that it creates an environment where that startup magic can continue to thrive. DevOps is like a fountain of youth that lets corporations continue to act like startups where it counts.

    Once upon a time Microsoft consisted of nothing more than Bill Gates and Paul Allen hacking away at a keyboard. Like any successful company, it grew….and grew, and grew, and grew. And, as it grew the culture changed, and departments were created, and bureaucratic policies were implemented. A task or feature that Bill or Paul would have just cranked out on the fly in an afternoon during the early days now must be vetted and approved, and go through a chain of command, and maybe a focus group before it can finally see the light of day.

    Startups are often formed by a few friends over pizza and beer while watching TV. In the beginning, things just get done. There is generally no real hierarchy of control, and everyone just owns what they’re working on and they get it done.

    Startups also remind me of watching Star Trek: The Next Generation. It always seemed like everyone new everyone else’s job—and anybody could fill in for anybody else. If Geordi La Forge—the chief engineer of the USS Enterprise—was captured or incapacitated, Worf—the Klingon chief of security could just step in and manage the warp core in his absence. Although everyone had a designated role, they all understood enough about the other roles to take over in a pinch. That’s how startups are before things grow so big that each person barely has enough time to keep up with their own department and duties, and barely knows what anyone else is doing.

    That brings me back to DevOps. The essence of DevOps requires that individuals take both initiative and responsibility for what they’re working on. The culture of DevOps is more fast-paced, and it doesn’t allow for protracted bureaucracy to drag things down. An organization that embraces the DevOps culture is forced to retain the innovation and agility that defined the startup stage.

    Granted, a large company like Netflix, or IBM still has a management hierarchy. There are policies in place, and different departments for IT, and human resources, and accounting. The IT guy can’t simply cut his own checks, and the accounting person can’t just go rogue and hire people without the knowledge and consent of HR. There are defined roles, and most of them serve a distinct and valuable purpose.

    That corporate structure still exists, but with DevOps you maintain that startup mentality where it counts—where new ideas are being developed and implemented. Of course, it’s also not without its challenges. Balancing the autonomy of DevOps with the policies and bureaucracy of a larger, established corporation can be confusing, and it’s important to have boundaries in place for just how long the DevOps leash is, and where the threshold is at which things need to be escalated up the chain.

    DevOps isn’t about a bunch of rogue employees running around autonomously wreaking havoc on the company, though. Much of DevOps seems to focus on tools and technology—and those are a crucial element of automating routine tasks and facilitating DevOps—but, the power of DevOps from a cultural point of view lies in collaboration. Done right, DevOps fosters an environment that frees employees to work together to find the most effective and efficient solutions.

    You probably won’t be able to recreate a situation like Star Trek: The Next Generation in a larger company. There will be departments, and there will be designated roles that need to be filled. With the right DevOps tools and technology, though, you can automate and speed up routine tasks, and free up time previously spent on those tedious jobs for employees to devote to solving bigger problems. With the right DevOps culture, you will unchain those employees and enable them to think and interact more creatively to come up with innovative ideas that may never have seen the light of day in a traditional corporate bureaucracy.

    DevOps can enable your company to function with the drive and agility of a startup, while still maintaining the wisdom and maturity of an established corporation.