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					Making a Difference in
 Interesting Times


   CCitDG Annual Conference
        October 8th, 2009

        Edward Granger-Happ
   CIO, Save the Children US & UK
         Chairman, NetHope
Five Take-aways
• We need to be more than ―lights-on‖ in
  nonprofits
• Have a dream and don‘t cut it
• NGOs cannot follow in the footsteps of
  corporations
• Collaborate or perish
• Ask good questions



                                           2
The value of IT?
Interesting Times
• Save the Children (US)
   – Canceled raises (2 years)
   – 10%+ HQ staff cuts; early retirement packages
• CARE (Atlanta)
   – ~70 staff laid off, including ~60 people in HQ
   – Salary Cuts: executive by 10%; other staff by 4%
• World Vision (US)
   – 50 staff laid off ~ 5 % US workforce; Eliminated 25 vacant positions
   – Reducing benefits (retirement match down 50%; co-pays up)
   – Freezing salaries/Canceling raises
• Ford, Kellogg, RWJ Foundations
   – Offering buyouts to 30-50% staff
   – Closing offices and cutting travel
• Museums and Art Orgs
   – Layoffs; furloughs; and program scale-back/elimination
                                                                            4
IT Departments Have Been Hit Hard


• % of US NGOs with mandated cuts is 79%
• Average % cut from IT Budget is 24%

    --US NGO-CIO Cost Cutting Survey, April 2009




                                                   5
Why is it that technology
is too often "the music
program of the nonprofit
industry, the first to get
cut and the last to be
reinstated"?
-- Holly Ross, ED, NTEN




                             6
A parable


            He CUT
            COSTS




                     7
―You are the storyteller of your
own life, and you can create
your own legend or not.‖
--Isabel   Allende
What‘s the single most important
       strategic question?
What‟s my destination?
  Save the Children
IT Vision and Strategy
 My Vision is Simple and Ambitious
    Making us all part of one virtual village.

                    Connect!

• Why? We can imagine a village, a village is
  connected, needs are personally known & met
• Strategy is about setting a destination &
  having a clear vision about what that
  destination looks like
• A story about Fraser…
                                                 12
Double the
number of
children we reach
with quality
programs.

Increase Alliance
collaboration to
build our global
movement for
children
Technology is a Key to Building Capacity
                     More Effective Impact
                       At Greater Scale


              Effective, Efficient, Scalable Programs


                      Partnering




                                                                 Processes



                                                                             Standards
                                         Advocacy
          Training
 Hiring




                                                    Tools   Systems Impact
                                   Funding Support
                                                                                         14
STC IT Strategy – Moving the Agenda Up the Pyramid
 Increasing Impact to Children




                                             Competitive            CHILD
                                             or Leading
                                                               “Differentiating”        Child & Field
                                                                                        Facing

                                                                PROGRAM
                                                       “Improving Program Delivery”


                                                               OPERATIONAL
                                 Efficient             “Helping the Organization Run”
                                                                                                    Donor & HQ
                                                                                                    Facing
                                                              FOUNDATIONAL
                                                           “Keeping the Lights On”




                                                                                                                 15
                                 The Strategy Changes at Each Level


                                                                                    Pilot & Build
Increasing Impact to Children




                                            Competitive            CHILD
                                            or Leading
                                                              “Differentiating”



                                                               PROGRAM                         Connect & Deliver
                                                      “Improving Program Delivery”


                                                              OPERATIONAL                            Buy, Co-op & COTS
                                Efficient             “Helping the Organization Run”

                                                                                                            Drive out costs,
                                                             FOUNDATIONAL                                   In-source,
                                                          “Keeping the Lights On”                           Shared Services




                                                                                                                       16
                                  And the Good Enough Boundary is High


                                                                                        Pilot & Build
Increasing Impact to Children




                                                Competitive            CHILD
                                                or Leading
                                                                  “Differentiating”
                                Innovative,
                                value-added                                                        Connect & Deliver
                                                                  PROGRAM
                                Technology
                                                         “Improving Program Delivery”


                                “Good Enough”                    OPERATIONAL                             Buy, Co-op & COTS
                                Commodity                “Helping the Organization Run”
                                Technology
                                                                                                                Drive out costs,
                                                                 FOUNDATIONAL                                   In-source,
                                                              “Keeping the Lights On”                           Shared Services




                                                                                                                           17
―What makes a resource truly strategic … is
not ubiquity but scarcity. You only gain an
edge over rivals by having or doing
something that they can't have or do. By
now, the core functions of IT — data
storage, data processing, and data transport
— have become available and affordable to
all.‖ --Nicolas Carr


                                               18
           Some Dysfunctional Pyramids




 Value-
less IT?
              The low cost utility;
             Efficient and headless
                                           Drive out costs,
                    FOUNDATIONAL           In-source,
                 “Keeping the Lights On”   Shared Services




                                                       19
Increasing Impact to Children
                                Some Dysfunctional Pyramids



              Shadow
                IT?
                                        The Business
                                        App Portfolio;
                                   Siloed & Foundationless
                                              OPERATIONAL              Buy, Co-op & COTS
                                      “Helping the Organization Run”




                                                                                       20
                                Some Dysfunctional Pyramids

              Shadow
                IT?                      The Front-line
Increasing Impact to Children




                                          Service Org;
                                     The Disconnected Field

                                               PROGRAM               Connect & Deliver
                                      “Improving Program Delivery”




                                                                                         21
                                          Some Dysfunctional Pyramids
                                              Helping save more lives;
                                                1:1 need fulfillment
                                Impact!
Increasing Impact to Children




                                                                        Pilot & Build
                                                         CHILD
                                                    “Differentiating”




                                                                                        22
                        So what type of IT are you in a crisis?
• Are we going to be about only saving costs
  or saving twice the children?
 Increasing Impact to Children




• That fundamentally is the key, the hinge on
  which NGO IT strategy turns.




                                                                  23
We Need to Push the Pyramid at Both Ends
                                                                  Get in
Increasing Impact to Children




                                            Competitive            CHILD
                                            or Leading
                                                              “Differentiating”



                                                               PROGRAM
                                                      “Improving Program Delivery”


                                                              OPERATIONAL
                                Efficient             “Helping the Organization Run”


                                                             FOUNDATIONAL
                                                          “Keeping the Lights On”




                                                                                       24
                                                                 Get out
Corporate indicators?
What if we continue down the path of
following our for-profit colleagues. Will the
tried and true work for the NGO world?




                                                26
Nonprofits get by with a fifth (or less) of corp. IT costs
                 Average IT Spend per Seat

   $14,000
   $13,000
   $12,000
   $11,000
   $10,000
    $9,000
    $8,000                             5x
    $7,000                                                 18x
    $6,000
    $5,000
    $4,000
    $3,000
    $2,000               4x
    $1,000
      $-
             Small NGO        Large NGO -    Corporate -
                                NetHope      No. America
                                Members

                                                                 27
Non Profit IT Departments Can‘t Play the Odds
 IF
 • 57% of ERP projects don't realize their ROI
   (Nucleus Research)
 • 66% IT projects fail (Standish Chaos DB)
 • NGOs spend a 20th what corporations do
   (Tuck survey)
 • And we are spending donors‘ dollars
 THEN
 • We must find a better way...
                                                 28
Key Conclusion: we can‘t do it



Even if nonprofits tripled IT spending, they
would still be playing catch-up for just
keeping the lights on.




                                               29
Bottom line?




We need to collaborate or perish!
Collaboration: The NetHope Case
NetHope‟s Members … an organization that works




                                                            32
                 Collaborating in Challenging Times!   32
                             Collaborating is about trust and humility


                                                                 “Who has expertise I can trust?
                                                   Shared
Increasing Levels of Trust




                                                Specialization

                                                Joint Projects
                                         “What can we build together?”

                                                 Partnering
                                     “How can we work with corporations?”


                                            Basic Info Sharing
                                         “What are my peers doing?”

                                                                                             33
                    NetHope Vision
      Connected Together, Changing the World




To be a catalyst for collaboration in the International NGO
community and enable best use of technology for
connecting in the developing parts of the world


                                                              34
External Collaboration Will Drive the Internal Agenda

Why NetHope as a collaboration works? We have…
  – History: NetHope has been at it for 8 years:
     building trust since 2001
  – Hunger: NGO IT are beggars – don’t
     underestimate value of under-funding
  – Humility: extending trust to centers of
     excellence in other members
  – Partnering: corporate partners buy-in to the
     leverage of collaboration and having impact
     with technology

                                                        35
     NetHope‟s Major Partners and Supporters …

Our Partners




Our Supporters




                                                              36
                   Collaborating in Challenging Times!   36
Learn to love the questions
Some Poke-in-the-Eye Questions
1. Why are we still running our own email? – Ron
   Markezich forecast
2. Why are we running our own help desks?
3. Why do we need a server, period? –Chris Thomas
4. Why haven't we changed our program delivery
   significantly in past 30 years?
5. Why do Imagine Cup students develop more field-
   based IT innovation in 9 months than nonprofits in
   5 years?
6. Why is Cisco able to cut travel 50% and increase
   customer contacts 20-30% and we can't approach
   that with our Field?


                                                        38
Six questions for Nonprofit CIOs
1.   What new programs (that directly serve beneficiaries)
     have you helped engender that would not have been
     possible without the new use of technology?
2.   What have you done to help close the "productivity gap"
     in the way your nonprofit delivers programs and operates
     as an organization?
3.   How have you helped bridge the divide that will be
     caused by disruptive innovations in the nonprofit space?
4.   For relief organizations: How have you helped disaster
     response be 50% faster with 50% greater impact?
5.   How have you helped your organization attract and retain
     knowledge workers (and IT professionals) in the face of
     crisis of the baby boom generation retirement wave?
6.   What are you doing to move commodity functions out of
     your organization and contribute time, dollars and support
     to the truly value-added functions of your agency?
                                                              39
Five Take-aways
• We need to be more than ―lights-on‖ in
  nonprofits
• Have a dream and don‘t cut it
• NGOs cannot follow in the footsteps of
  corporations
• Collaborate or perish
• Ask good questions



                                           40
41
Further Reading
• Blogs:
  http://eghapp.blogspot.com/
  http://granger-happ.blogspot.com/ (Dartmouth Fellowship)
• Web site:
  http://www.fairfieldreview.org/hpmd/EGHprofile.nsf
• Email: ehapp@savechildren.org
• Twitter: @ehapp
• And the book:
  Managing Technology to Meet Your Mission, chap. 11.


                                                             42
Questions?
Appendix
• Additional detail slides




                             44
 CCitDG Annual Conference 2009, October 7th to 9th
„Making a Difference in Interesting Times‟
The theme of the conference is "Making a Difference in Interesting Times". Current economic
conditions are just as challenging for charities as for any other organisation, with issues
including falling income from donors, falling interest on reserves and, for those working
overseas, increased costs due to falling exchange rates. For all our members (and we're talking
CIOs and IT directors) this has meant a big change to their ‗status quo‘. Times are tough,
budgets are being cut but more significantly there is an increased level of uncertainty, the future
is less clear, plans are being consistently torn-up and re-made and so forth. However challenging
times often present more opportunities and in the more effective organisations, CIOs are engaged
with the whole leadership team in turning adversity into advantage, plotting the path for their
charity through the ‗recession‘ and positioning their charity to emerge stronger; others are
merely hanging on and hoping! So the conference will explore ways in which we, as CIOs and
IT Directors, can really make a difference to an organisation‘s performance during these
challenging times.

The approach we have taken in organizing the event has been to give all the speakers a similar
brief and invite them to tackle this from their perspective, so we have:
- Board Level - Ed Granger Happ
- Finance Director – Mark Hallam
- Sector Consultant - Chris Tiernan
- Leading Research Organisation – Dave Aron
- Supplier Viewpoint – Stuart Monk
- Looking to the Future - Peter Cochrane
- Soft Skills - Diana Gomick




                                                                                                      45
                An introduction
• I‘m Ed Granger-Happ
     ehapp@savechildren.org
• Some things on my resume:
  – I spent 13 years on Wall Street & 10 running my
    own management consulting business --both in IT
  – I‘ve been at Save the Children 9 years
  – Save the Children is my third career
• Some things not on my resume:
  – I was born on Mother‘s Day
  – I have two step-sons, David (18) and Scott (15)
  – I like to exercise my right brain with creative
    writing (see www.fairfieldreview.org)
                                                      46
In the beginning, there was the vision
Imagine this:

 Google's mission is to organize the world's
 information and make it universally
 accessible and useful.

Bumper sticker version:

 All the information for all the people, now

                                               47
Six strategic questions ED/CEOs should ask
1. How can we ensure Convergence rather than
   Divergence?
2. How do we balance innovation and foundation
   building? process and work-flow applications, and
   reserve some
3. What‘s the technology future and what‘s the past?
4. How do we meet near-term business needs while
   building for the long term?
5. How do we invest enough and not too much?
6. From where will disruptive innovations come for
   nonprofits come?


                                                       48
Relentless Focus on the Goal…




                                49
               Who Are Our Customers?

                                                          Organization
                   HQ Depts


 Donors,
 Grantors
                                                   Program
                                                   Designer
                          Field
                         Worker
                                           Field
Corporations

                                         Child




                              IT Dept.




                                                                         50
What does success look like?
In five years, I envision SC using technology in the following ways:
1. Greater use of technology to directly impact the lives of children. New
     programs in health, education, & protection delivered & monitored via
     technology.
2. All SC offices seamlessly connected. Stakeholders can readily find each other
     based on expertise & interests, move easily from one office to next & feel part
     of one organization. Solutions for low bandwidth locations identified &
     delivered.
3. Critical management information (financials, program status, key metrics like
     children reached) is available for all countries on a near-real time basis.
4. SC is leveraging technology to be the first & most responsive organization in
     emergencies (e.g., RFID-based solutions, real-time information & tracking.)
5. Greater connectedness between donors & SC, sponsors & children using web
     2.0 technology (e.g. social networking) to strengthen & increase relationships.
6. A low cost technology infrastructure that is shared & scales across the Alliance
     for large & small members, complex & basic field offices.
7. A greater use of consumer applications (e.g. SKYPE, Flickr, LinkedIn, Google
     calendar, etc.) by our employees for conducting their daily work.
8. Greater collaboration with INGOs & other partners sharing basic commodity IT
     services like help desk & procurement.

                                                                                       51
                                     Our Objectives Support the Strategy

                                                Beneficiary
                                                  Pilots
                                                                                           ICT4D
                                               Imagine Cup
                                                                                          NetHope
 Increasing Impact to Children




                                               Competitive             CHILD
                                               or Leading
                                                                  “Differentiating”


                                                                                               Finance
                                                                  PROGRAM                     Mgmt (FMS)
                                                         “Improving Program Delivery”

Overseas WAN                                                                                            Video
 ―FO Wiring‖                                                     OPERATIONAL
                                   Efficient                                                         Conferencing
                                                         “Helping the Organization Run”
                                                                                                        ―VOX‖

                                                                 FOUNDATIONAL
                                  Unified                     “Keeping the Lights On”
                                 US-UK IT



                                                                                                                    52
53
What are Top Tech Questions to Ask?
1. How will global broadband impact how we do
   business?
2. What will the unbundling of the application value
   chain mean?
3. How will consumer applications and cell phones
   change the tool set?
4. What will the immediacy & democratization of
   information mean?
5. From where will disruptive innovations come for
   nonprofits?
6. What if we‘re wrong?

                                                       54
Some Poke-in-the-Eye Questions
1. Why are we still running our own email? – Ron Markezich
    forecast
2. Why are we running our own help desks?
3. Why are we running commodity IT instead of mission-moving
    IT?
4. Why are we following in steps of corporations instead of
    leap-frogging them?
5. ―Shadow IT‖ should be encouraged, supported, recognized –
    Chris Thomas
6. Why do we need a server, period? –Chris Thomas
7. Why haven't we changed our program delivery significantly in
    past 30 years?
8. Why do Imagine Cup students develop more field-based IT
    innovation in 9 months than nonprofits in 5 years?
9. Why is Cisco able to cut travel 50% and increase customer
    contacts 20-30% and we can't approach that with our Field?
10. Why is it that ―every day, somewhere in the world, something
    is being reinvented in our organization poorly‖?               55
What if we‘re wrong?



       Strategy is about making bets!




                                        56
  Advice from a Hockey Legend




―I skate to where the puck is going to be, not where it has been.‖
--Wayne Gretzky

                                                               57
A final piece of advice #1 (User Revolutions)
• Users of technology find ways to get what they
  need
  – Case of the Wall Street analysts and the Apple II
• Centralized and controlling technology policies
  usually invite revolt among the users.
  – Seeing this again with influx of consumer applications
    like SKYPE, Blogger and Facebook in the workplace.
• IT managers would do well to heed Lyndon
  Johnson‘s advice:
  – ―better to have them inside the tent pissing out than
    outside pissing in.‖

                                                             58
A final piece of advice #2
 Before you make your bets:
  – when there is rapid change and uncertainty,
    smart organizations vary like mad.
  – Run pilots, experiments and test ideas. Throw
    away what doesn‘t work. Take to scale that
    which succeeds.




                                                    59

				
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