Minnesota CEO’s – change the employement game for your employees to bring more value
Problem: Frustrated, unappreciated technical talent that doesn’t understand their value.
Solution: Treat them like the talent they are, like top producing movie stars.
I believe that the troublemakers are the ones that bring opportunity. Someone who’s frustrated in their work is frustrated because they believe it can and should be better – they just may not be able to express the desired change in a way that others are able to understand and act upon. For example, I heard the story of a manager at Sun who many years ago complained to the owner that he was frustrated and leaving. The owner asked exactly what he felt needed to change and received quite an earful. The owner told him something to the effect of ‘looks like you have a big job to do implementing these changes, you’d better get busy’. The owner knew how to change the frustration into action.
The story about the coming to a particularly ugly head of the bitter dispute between network admin Terry Childs and his managers (see http://www.cio.com/article/444526/Tech_Workers_Smoldering_Discontent), is about a frustrated employee and a supposed ‘incompetent boss’. I believe the question is how to change the rules of employment so as to prevent frustration. This is a similar situation in many ways to the labor movement in the US that created unions. Employees felt they were being taken advantage of and so they unionized in order to create a better work environment for themselves. Today technology workers are experiencing similar frustrations yet they reject the notion of unionizing, they perceive themselves as different from the ‘union mentality’.
Where then, is a workable solution to this quandary? In the entertainment industry there are talent scouts – they ‘lock up’ the best talent by securing an exclusive representation agreement. Interestingly enough, the way top talent is ‘sold’ is by reputation and by potential draw power, i.e. this star has a phenomenal box office draw and the movie will make you more than what you pay them. Imagine bringing this model to the ‘frustrated tech industry’.
If I were a recruiter I could package up a superstar team of the best database analyst, best web developer and the best Project Manager etc., pick a target company and ‘sell’ them. The pitch is this team is able to get the job completed in ½ the time because they already have the experience and code components ready to go. Now I’m selling the best solution economically, not just a body or a team. Repeat this process for an entire IT shop – now IT workers are finally focused on delivering real hard dollar business benefits instead of chattering on and on about buying more IT hardware for no clear or understandable purpose. They are finally able to show they are worth more than they are being paid.
However, just like in the entertainment industry, if an entertainer doesn’t want to do the project then they don’t take the gig. It’s up to the talent scouts to find the best replacement. No more frustration for the IT worker, they pick the companies they want to work for.
Smart IT talent would understand that the code they create is theirs to license out to their employer. As they grow their experience they also grow their application base. They can then offer reusable components and start selling those to other companies. This would have to be negotiated, hence the value of the talent scout to the formerly frustrated IT worker.
For example, a company may want to expand internationally. They turn to their IT department managers and hear a bunch of IT speak on language conversions, database redundancy and security, etc. The CEO turns to the talent scout who says ‘yes, I have a team that’s developed international applications and they have most of the application you need already designed and coded. It will take them less than 3 months to deploy (one business quarter)”. “Oh, yes, this team already works for you on contract but I own the rights to them and their code’. Would you like me to have them move forward with this new project?”
Same thing for support teams. Clearly identify how they are providing more value than they are charging in the form of their paycheck. These people are now sold as an insurance policy against downtime. Keep metrics on their downtime and return to service metrics – now when the discussion comes to ‘lets make support cheaper’ you have a value metric. Team A has this downtime metric, Team B has another downtime metric. Cheaper equals this much more additional downtime risk. Is your business ready to assume that additional risk? It also gives a competition metric for the support team. How well do they stack up against global support? What areas do they need to improve upon? How much have they improved system uptime? Is that trend increasing or decreasing? What about new systems, are they deployed faster and more stable?
Compare this to the revenue this system brings in. Now business owners and managers have a way to appropriately size support. High revenue systems get high value support and less downtime risk. Low revenue systems get low cost support and take on more downtime risk.
As these support teams create innovative support solutions, automated support tools and a knowledge base, these are owned by the team, not the company. This would require a talent scout to negotiate on their behalf so that the value is retained by the team.
Business owners would finally be able to quantify the value of their IT team and they’d be able to finally have an IT group focused on creating real business value.
Really smart companies would lock up the rights on their own talent before they ‘unionized’ by signing exclusive representation agreements with talent scouts. Imagine your Human Resources team out there ‘locking up’ the rights to the top IT talent. Not just hiring them but getting exclusive representation rights (yes, a contract).
Bottom line, IT workers are not able to sell their value. It’s why they need someone to negotiate on their behalf.
Alan Hill is a business and executive coach in Minneapolis, Minnesota with ActionCOACH, the world’s number one business coaching company. If you would like to learn more about him or to contact him for a private consultation, check out his website at http://actioncoach.com/alanhill