Baschab J., Piot J. – The professional services firm. Bible – Page 108 – Library. Read online. Free books read online. Read books without registering

Exploiting core competencies allows a firm to deliver end products. In the legal field, for example, end products are the specific legal services. Given the diversity of practices, most firms sell various end products. Each lawyer likely provides several different end products, oftentimes “reinventing” the end product for the particular client. For example, an attorney who has intellectual property litigation experience (end product 1) may consult with a client on how to minimize the risk of copyright litigation (end product 2). The attorney may also accept an engagement to register a copyright (end product 3).

Between core competencies and end products are a firm’s core products.

“Core products are the components or subassemblies that actually contribute to the value of the end products.”4 Law firm core products may include complex litigation, high-volume personal injury, medical malpractice, cross-border mergers and acquisitions—the list is virtually endless. In a properly aligned organization, core competencies are used to create core products.

Core products are the building blocks to end products.

Identifying core competencies is critical. As budget pressure and technology costs increase, the number of noncore competencies must be minimized through standardization. For example, in a multioffice firm, what is the benefit of having one office run Microsoft Word and the other run Corel WordPer-fect? While efficiently creating documents may be a core competency, doing it on a particular system is not. Setting aside religious preferences and absent a compelling client- or locale-driven requirement, the firm should standardize on one package. Standards provide economies of scale and resulting leverage to better negotiate license and maintenance costs. They allow development of expertise and training in fewer packages. They allow the ability to share work product. Whether or not standards make sense to the attorneys who have to shift to the new standard, unless the diversity serves a core competence or core product, standardization should be forced. Technology strategy should re-f lect and allow development of core competencies. Taking this approach allows a focused strategy and minimizes the watered-down effect of a shotgun approach.

Most corporate strategic plans will describe key goals that the company is striving to achieve as well as key metrics targets (e.g., backlog, pipeline,

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revenue, headcount, utilization rate). In general some of the following will likely be included in a strategy document:

• Core values

• Targets (three- to five-year financial and business target metrics)

• Key Threats

• Key Opportunities

• Key Initiatives (goals)

It is then the responsibility of the CIO to interpret the firms overall strategy and determine how IT can support the company in executing the strategy.

This would entail matching current initiatives to each key goal as well as recommending or evaluating new technology requests against each key goal to ensure alignment. The ultimate arbiter of alignment will be the IT steering committee, which we will discuss later in the chapter.

The CIO should annually create an IT strategy document that shows key initiatives in IT and their relationship to business key initiatives. In general, the IT strategy should consider all pieces of the business strategy and core competencies. For example, if one of the goals of the firm is to increase utilization rates from 76 to 83 percent, do any current IT projects get us there?

Do any prospective projects help? Perhaps by implementing a real-time-hours reporting system we expect consultants to manage their time more closely and to gain 2 to 3 percent increase in utilization with time management. If another corporate goal is to reduce days sales outstanding from 60

to 55, perhaps a better collections system can help the company achieve this goal. Similar to corporate strategy, the IT strategy document should include the following information:

• IT Department mission statement

• Near-term goals/initiatives (and how they map to corporate strategy)

• Long-term goals/initiatives

• Challenges/risks

• Actions required for each quarter and for the year

Architecture

Form follows function.

—Louis Henri Sullivan (1856–1924), The Tallest Office

Building Artistically Considered

Technology architecture is a set of guidelines and standards used to direct IT

decision making and planning. It is the part of the firm’s technology strategy that says how we will accomplish our objectives. Architecture:

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• Is broader than technology but usually handled within technology because no one else gives it much thought—but everyone must be involved.

• Flows from strategy.

• The Zachman Framework provides an example (see later discussion).

• Can increase or decrease maintenance costs by 25 percent.

Technology architecture normally dictates how systems will be designed and implemented. It must be consistent with the enterprise architecture, which is a broader concept. An enterprise architecture describes in various levels of details how the business is designed and functions. One common approach to enterprise architecture is the Zachman Framework. Zachman divides this description into five different views, which include an ever-increasing level of detail. The scope view identifies what will be included in the architecture. The owners’ view describes the enterprise from how the owners understand it, without technical detail. The designer’s view provides detail on the relationships required for the owners’ view to be implemented. The builder’s view describes how the systems are built and implemented. Finally, the detailed subcontractor’s view shows the very detailed relationships.

The idea behind describing the architecture is to ensure there is one way to do each process, and each time you approach a new need, you do not create a stand-alone point solution. Rather, you leverage your existing investment.

This simplifies your environment—both technology and nontechnology—and controls cost. Exhibit 17.1 shows an application architecture for a generic professional service firm. Key applications include time entry and tracking, project management, billing, financial reporting, document management, sales tracking and bid management, staffing, and intellectual capital management.

Technical architecture illustrates the technical platforms that the company operates, the interfaces between these platforms, and the connections to external communication networks. Exhibit 17.2 shows all the categories of technology in an organization that will eventually make their way into the company’s application and technical architecture.

Organization

The trouble with teams is that only the lead dog gets a change in scenery.

—Donald Walker, Sergeant Preston of the Yukon,

from Never Try to Teach a Pig to Sing

An IT organization must ref lect the business. Typically, an organizational chart starts with the chief information officer or IT director and cascades from there. An example is shown in Exhibit 17.3. This is a traditional approach and would certainly allow someone to determine whose reporting structure

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Marketing

communications

Sales

Delivery

Recruiting

Accounting

Productivity

External

CRM

Resource

Candidate/

General

Help desk

MS Office

website

Opportunity

management

Resume

ledger

tool

Word

management

Staffing

management

Excel

Contact

Tracking

Accounts

IT asset

PowerPoint

Internal

management

Availability

Job orders/

payable

management

intranet

Sales orders

Requisitions

Organizational

Forecasting

Skill

Accounts

IT knowledge

chart/

Internal

Alliance

Telemarketing

tracking

receivable

base

Diagramming

referrals

management

Lead sharing

Visio

Career

Time and

Phone/VM

EZ access

development

expense

tracking tool

Project

manager

management

module

IC/Knowledge

Project

IT project

MS project

management/

accounting

tracking

DTO

Email server

Asset

Security/

Engage

Exchange

management

Firewall

management

Contact

Email client

Payroll

management

Outlook

Billing detail

Fee schedules

Collaboration

Employee

Approval

Netmeeting

requisition

workflow

Web browser

Project date

New hires/

Internet

Project

Departures

Explorer

schedule

Task

CapEx

Company

distribution

equipment

address book

MS project

Exchange

management

Pager/Cell

phone

Dashboard/

requests

Practice

management

Customer

support

Training

requests/

Schedule

Reprinted with permission, Executives Guide to Information Technology.

Exhibit 17.1

Application Architecture for a Generic Professional Service Firm

any IT person fell within. Typically the organization is bifurcated by applications and the infrastructure (i.e., operations) groups. The applications management group is responsible for the performance of all the teams in the application development and support group. The application manager must have a complete understanding of the business systems used in each area of the business. The operations manager is responsible for the performance of all the teams in the IT operations group. The operations manager must have a basic understanding of the technologies used in each of the areas managed.

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