As information aggregator Kosmix grew to thirty employees, its team started suffering from e-mail overload and workweek creep; it was time to rethink its communications. Stop Email Overload and Break Silos Using Wikis, Blogs, and IM details their efforts.

It seems Kosmix was relying primarily on e-mail, even for things which e-mail is not well-suited for. (For a primer, look here.) This is sort of thing is often the case with startup companies, where, in my experience, off-the-shelf Macs, procedures and free services “work” without design or strategy, then suddenly buckle under the load as the company grows.

Now at Kosmix, Blogs and RSS feeds are being used for status updates (making many meetings unnecessary!), Wikis are being used for “persistent information”, and IM is being used for live communications from diverse locations.

My second favorite thing is that employees are allowed to set their IM “status” to “Do Not Disturb” when interruptions are especially unwelcome. My favorite thing is that technology being used smartly and is aligned with business needs.

(My only concern as an IT professional is that they are using Yahoo for IM, which is likely not the most secure choice, and there’s no mention of using a VPN to connect to the office.)

I like that there’s a healthy realization that “Kosmix is certainly not the first company to use internal blogs, wikis, and IM for corporate communication” and that “as Kosmix grows further, even this model will break down at some point and (they) will have to look for new communication models.”

The results “have been immediate and very visible. They include a lot less email and almost none on weekends; better communication among people; and 360 degree visibility for every member of the Kosmix team. After we instituted these changes, everyone on the team feels more productive, more knowledgeable about the company, has more spare time to spend on things outside of work.”

Now who wouldn’t want that?!

This recent Fast Company interview with Gartner (IT) researcher Tom Austin articulates something that I’ve been preaching for years - IT is a business tool that should enhance human interaction and collaboration. Favorite Quote (italics mine): “There’s a recognition that if you relax some controls — not all — you’re probably going to get more creative behavior out of the individuals than if everything is locked down. The organization gets far more flexible as well.” WARNING: This article contains cringe-inducing buzzwords.

Wasted IT Dollars

30 October 2006

A recent study by Gartner Research finds that only 20% of IT money is helping businesses grow or gain a competitive advantage. They call the other 80% “dead money” since all it does is keep things running; in other words, it’s an expense.

Personally, I think their methodology is wrong, since there’s no attempt to measure the value of the systems in place, which may *already* be leveraging IT for success. It is possible that these systems already bring value to a business in terms of efficiency and service marketing.

The study, however, brings up some great points:

• IT managers must understand businesses.

• IT should take the lead, providing a strategy for a business.

• IT must demonstrate the value it brings to an organization.

The takeaway:
Everything IT Departments/IT Managers do must add value to a business, first in terms of a dependable infrastructure, then in terms of simplifying business (efficiency), and finally, in terms of providing a competitive advantage. (For creative businesses, this usually means better creative, faster.) Otherwise, you have something worse than “dead money”; you have dead weight, *dragging the business down*.

(Full disclosure - I am an IT Pro. I wrote this essay some time back because time after time I am brought in to a business to untangle IT messes which could have been avoided. The point is that the importance of networks and servers, especially in a creative setting, is often underestimated and managers tend to think of infrastructure as an expense, and not as a tool for success. On numerous occasions, I myself have chosen the “cheap” option, only to have it come back to bite me in the, uh, hinter regions, as they say.)

The Delta family wanted more space in their home. All the toys they bought their children could no longer fit in the bedrooms and there was little room to play. They decided they couldn’t afford to spend too much money, and they wanted a solution before Christmas, because they knew they would be buying more toys. They hired a carpenter who converted their garage into a family room just in time for the holiday. It wasn’t much, but the kids seemed to like it - for a few months, after which, it became another storage space. The family’s vehicles remained outdoors.

The Alpha family was also looking for more space. A relative strongly suggested hiring an architect, an idea which they initially fought because it seemed expensive. After making little headway with their own ideas, they relented and hired an architect.

The architect observed how they lived, and after asking scores of questions, made some wonderful suggestions. With some creative thinking, the Alpha family found that the proposed renovation qualified them for a loan. Once the project was complete, the renovation enhanced their lives so much, they could not imagine how they lived without it. Adding to their enjoyment was the fact that the increased value of their home exceeded the cost of the renovation by thousands of dollars.

Five years later, both homes, which initially were identical designs in similar neighborhoods, went up for sale. The Alpha family’s home, enhanced by the renovation, quickly sold. The Delta family’s home was on the market for some time, and eventually sold - once they re-converted the family room back into a garage - at their expense. Although the real estate values had increased 50% in both neighborhoods over the years, the Alpha family had a net gain of 80%, while the Delta family had a net gain of 30% - technically a loss.

Information Technology works the same way. Fast, cheap, or DIY solutions usually come at a cost in terms of lost time and unexpected problems, which make IT an expense. If on the other hand, you hire a consultant who will start with your business goals, form a strategy, guide your purchases, and provide expert installation, you are making choices that will allow IT to be an investment in your business.

So instead of thinking, “I cannot afford a consultant”, ask, “how can I afford a consultant?”

“I cannot afford” is an excuse; it’s a dead end. “How can I afford?” makes you think creatively. “How can I afford?” forces you to weed the wants from the needs. You will have to determine your business’ priorities. You will have to think how you might reallocate existing resources. You will have to think how investing money in one area could provide big returns in another area. Yes, creative business manager, now you are thinking creatively. If you spend wisely, not only will IT save you money, it will also bring in more money in the form of happier clients, new revenue streams, and competitive advantage.