Industry news

  • 23 Jan 2012 12:00 AM | Anonymous

    When managing a business-damaging incident, it is clear why representatives from ‘the business' behave the way they do – behaviour which (depending on the prevailing culture of the organisation) can range from reasonable to psychotic. When critical systems go down and affect the minute to minute revenue streams - even for a minute – financial losses can be huge. This is all the more impactful within small and medium sized organizations.

    We know from analysis and experience that the normal response - jumping to cause - costs more money, reputation and time than calmly working through the evidence. But there are two other crucial factors interfering with good sense under pressure – biology and psychology.

    Given the external pressures, there are four key drivers to effective performance that consultants at Kepner-Tregoe have defined and revised:

    • Predictable performance - how we use our brain and skills to create the circumstances and environment that people need to handle complex problems under severe time pressure

    • Infrastructure - the tools and systems we use to enable exemplary support

    • Feedback - the learning and improvement loop

    • Right channels - making sure we have effective communications in major incidents

    Many people believe that coping with emergency situations is a matter of in-built character, somehow genetically determined. Use of advanced brain scanning techniques has in recent years allowed researchers to find out what‘s really happening in human brains when people are put into stressful situations, and what stresses trigger the strongest neural responses. Knowing these triggers and reducing them can have an immediate benefit to personal health and business performance.

    Brain Hardware is wired for two kinds of response – Threat and Reward. Threat is an easily triggered response which takes resources from the prefrontal cortex; it inhibits complex problem solving and drives a survival instinct. Reward releases dopamine, improves collaboration and increases the quality of rational thinking.

    The SCARF Model

    The triggers for the ‘Threat and Reward’ response are based on a surprisingly small number of

    stress factors; these five (the SCARF Model1) exert the strongest influences on individual performance:

    Status is about relative importance to others

    Certainty concerns being able to predict the future

    Autonomy provides a sense of control over events

    Relatedness is a sense of safety with others, of friend rather than foe

    Fairness is a perception of fair exchanges between people

    Five things to do that will help:

    1) For managing status anxiety: filter out threats: many companies now operate two simultaneous bridges; Technical and Management. The people fixing stuff should be protected from disturbance and left to get on with what they do best. Management need to handle the legal, political and reputational implications of the outage. The flow between the two channels has to be managed carefully, and that means keeping progress visible for all. Make the current status of the incident readable and distributed - so that someone can read the current status and not interrupt the bridge with 'what's going on?'

    2) Certainty through process: making your recovery and resolution process visible and in recognisable small steps is important. If senior people – and clients – can go and look and see that you’re making progress that will tend to ease the shrill demands.

    Practice on the easy: If your current case records look rather scruffy, how likely is it that crisp clear reporting will suddenly get done in an emergency? Get folks to use good quality consistent troubleshooting on everyday cases, and they’ll be better able to handle the tough ones.

    The best people are often hidden away. Some years ago a colleague in Kepner-Tregoe ran a project in a manufacturing plant. Tracing faults was often hard since operators tended to tweak their machines all the time, and figuring out what change related to what fault was nigh on impossible.

    Except for Colin. Colin made constant little notes: "10:43: ring former out of alignment. Turned adjuster one quarter turn clockwise. Product all OK". People with an eye for detail are safe hands in tough times.

    Kepner-Tregoe’s rational leadership processes prove how useful it is to have a structured method for working through both complex and simple problems.

    Every incident has a natural process, and it isn’t trial and error. Keep the list of issues, impacts and consequences visible to all, as well as the investigation and resolution actions. When we read Major Incident process guides, we too often find them focused on who calls who, and not enough about HOW the incident needs to be progressed to ensure a quality outcome. Creating this path is one of the key things we can do to use the SCARF model, since having a recipe for success is an important way of increasing certainty. This also allows the visibility that management and regulators expect.

    When using a clearly described method, with visible stage gates, people apply their creativity when it matters most, and their analytical skills where they are needed, giving people the opportunity to make a contribution, visibly.

    3) Autonomy is cemented by making sure that the boundaries are there, and everyone knows what to do when they reach them. For example, in most incidents an accurate time for the start of the symptoms is important for diagnosis and decision making. You can leave engineers free to decide how they get this information (log files, user experience, downstream effects etc), but get it they must, and at a gallop, if recovery is to be effected quickly. There are other steps, such as a careful risk assessment prior to the recovery action which you may mandate, but leave the details up to the incident managers.

    4) Relatedness helps the incident handling process, and not just in major incidents. This was recently illustrated by a change we made to case escalation in a client. Instead of just filling in the severity rating according to predefined criteria (Impact 1-4), Tier 1 engineers were instructed to describe in words what the problem was like for the users (all forty outbound mortgage staff unable to process applications). We found higher Tiers (2 and 3) much more responsive when the situation was clearly explained to them.

    5) Fairness can be lost if the ‘messenger is shot’. People shout at doctors treating their relatives, even though the doctor is not at all responsible for the disease in question, and are doing their best. Expecting teams to perform well when the solution is outside their control is one of the biggest mistakes. Blaming folks for factors beyond their control doesn’t enhance performance, and loads unfairness. Recognising teams appropriately for their contribution is important in building an environment that encourages predictable performance.

  • 23 Jan 2012 12:00 AM | Anonymous

    Once upon a time, training was neatly divided: you went to a classroom and were taught by an expert of some kind; alternatively, you sat by a skilled operator, watched and tried things for yourself until you learned how; you went to a University or other educational institution and were drilled in theory, with some practical work for scientific degrees, and wrote a lot of essays.

    Models of education were fairly rigid, for good reasons: student’s time was cheap. Even for working people, their wage levels, relatively speaking, were low and the necessary educational resources (classrooms, laboratories, skilled educators) relatively scarce. A one size fits all educational production line is a reasonable response in those circumstances. A bit like a model T Ford: available in any colour as long as it’s black.

    A great deal of practical training took place in apprenticeships; while these were often very thorough in developing a particular set of skills, they were often long, and apprentices were unpaid - or even had to pay the master craftsman during the period of their apprenticeship.

    I ran my first training class - technical training in telecoms - in 1984. It was a photocopied manual, some practical exercises and a lot of talk.

    In some respects not much has changed for the buyer of training, the participant, or the vendors.

    For the buyer, the all-important cost seems to be remarkably stable: with some exceptions, professional training in a range of subjects from software design to project management seems to hover at about the same level as the fully loaded cost of the average employee per working day.

    This probably reflects a stark reality: unlike manufacturing widgets, where there are economies of scale if you produce or buy more, human resources can’t easily be increased by turning up the speed of the production. A well structured programme of professional training can only go as quickly as the human mind can absorb new learning.

    The training market remains enormously varied and fragmented. This is not a market that has fallen into the hands of a few big players. A search for management training in the UK on Google lists 31 million results! In addition to Universities, Colleges and other public bodies there are over 12000 private training providers operating in the UK, according to VAT records, plus the uncountable numbers of sole traders operating at a low level. Most of these firms have fewer than 5 employees. The private training market accounts for less than £3bn annually; the majority of training costs incurred by employers remains internal. The total spent on off-the job training in 2007 was £18.4bn. Few employers account for the class time of employees as well as that of training professionals, nor the loss of productivity incurred during on the job training, so the total cost is probably much larger.

    One exception to this fragmentation is IT training. Here 15 providers such as Learning Tree and QA collectively account for over 50% of the market.

    For participants, many will still sit in a training centre, work at a desk and be led through their learning experience by a trainer. Flipcharts are still there, and though there is more technology in presentation, this hasn’t always led to improvement. Trainers scribbling illegibly on blackboard, who moved on to overhead projector film have turned into trainers showing incomprehensible and impossibly wordy PowerPoint’s, with irrelevant and irritating animations.

    In other areas, a great deal has changed. During the years of near to full employment, employers bore the major responsibility for training. Government - at least in the UK - supported training by levies, which could be clawed back by employers who provided the necessary training. Apprenticeships flourished, regulated by industry wide agreements.

    The last three decades have seen a shift in emphasis: employees are now largely held responsible for their own development, and many large training departments have been downsized; what does remain acts in many cases as a pathfinder for individuals and department heads to find the appropriate training to fit a particular development need.

    One of my clients in the 90s had two dozen trainers devoted solely to management training classes. Today one remains, and his role is part-time. Since the training has to be bought in when it’s needed, the stress on providing a proper cost-benefit analysis is greater, though at the top end, companies still fund very costly MBAs for their star managers, knowing that most of them will be gone as soon as their contractual ties expire. At the same time, once a training course becomes accepted and popular, critical evaluation often ceases. At Kepner-Tregoe we have a constant battle in persuading clients to measure outcomes carefully, not just record the participants’ evaluations.

    Some of these shifts in emphasis mirror the passing of the paternalistic organisation; other hallmarks such as jobs for life, large sports fields and heavily subsidised staff restaurants have gone too.

    Expectations

    Expectations about the way training is conducted have become more diverse; in the recent past many organisations ran training like a production line. Each new employee would be treated pretty much like a widget that had to be put through a number of processes until they’re “ready”. As more learner centred approaches have been adopted and organisations expect employees to take responsibility for their own development, training has become more like a menu for the participant. Some elements - as with University degrees - are compulsory (C+ Programmers must understand C+), but others will vary as people’s role change.

    Can’t you make it shorter?

    Microwaves reduce cooking times, but are not going to produce fine cuisine; some things just don’t lend themselves to being done at speed.

    Recently I saw a class given by a real expert in project management. One day, with everything you needed to know, accompanied by a 1000 page comprehensive book. This wasn’t an overview, but an in-depth lecture, delivered at high speed using 500 PowerPoint’s. Understandably, participants complained.

    One thing remains true: that organisational expectation for the results of learning continue to be unrealistic. We know that to build or change any kind of habitual behaviour pattern takes many repetitions and much practice. Professional golfers will typically hit thousands of balls a week in order to “groove” their gold swing, and make the right one automatic. Training - whatever medium is used for delivery - expects participants to memorise, understand and apply often complex concepts after the barest exposure and a few relatively simple case studies. The message is as clear as it has always been:

    Get the content right; less is more; build in enough practice and high quality feedback if you want real performance on the job.

    What explains the continuing popularity of the classroom, when so many new media channels are available?

    As far as technique is concerned, it’s not surprising that little has changed from a school-like model: human brains haven’t evolved in function or capacity in the last century. Meeting rooms are not easily available in most large companies, but they are there. Giving people a physical place to go to learn is often easier than getting the same group to turn up in a virtual classroom. If we’re not exploiting the extra functions that technology affords, e-learning will frequently offer a learning experience that feels less satisfying than reading a book. This may account for the fact that a typical UK learner spent only 14% of training hours consumed in e-learning.

    Evolution is a good word; as we learn more, so the quality and range of choice has increased. For many professional topics learners have the choice of a long and in-depth period of study leading to a degree or other professional qualification, or shorter more targeted courses covering something of immediate use. No longer restricted to the classroom, training can be taken in virtual worlds - a good deal of excellent material is accessible at a reasonable cost online, with well designed modules. My personal favourite is the UK’s Open University, which has a very clear linkage between the learning materials and the goals.

    Regrettably, new technology also leads to some shocking examples of misuse: some companies appear to think that putting a PowerPoint presentation online with a simple multiple choice test at the end constitutes effective e-learning.

    Constructing e-learning for relatively narrow and well defined subjects such as root cause analysis depends on having a well-tested process or model, which you can then translate into e-learning modules. Some subjects, such as leadership and communication, have multiple models and approaches, which are much more difficult to distil into something simple enough to put into a single e-learning module.

    The biggest challenge is in absorbing and using what we understand about learning patterns into practical changes to training. To some extent tools such as Google, SharePoint and other Knowledge Base systems in major companies provide a useful model for the future. Just as we can rate each FAQ on a website as useful or not so useful, and leave written feedback, so training class participants could be giving their reactions in real time, and both e-learning authors and classroom trainers could be incorporating this feedback into a continuous cycle of improvements. AT Kepner-Tregoe we routinely video classes and archive those sections that participants have found most helpful as resources for trainers to learn from. It’s not hard to imagine that this feedback will soon be available within an hour or two of the event.

    Blended learning offers an opportunity to become much more learner-centred, as it combines self-study by e-learning with trainer-led approaches, some of which may be in the classroom. At Kepner-Tregoe we’ve found that using e-learning to provide information and teach concepts, combines well with using physical or virtual classrooms to allow students to practice using role plays and case studies to reinforce their understanding and build job-relevant skills. In the longer term, blended offers the possibility that each student will be able to learn a given subject using a mix of media that appeals to his or her learning style, time availability and budget.

    This will inevitably add to the complexity for trainers. Twenty years ago I would have spent the day in a classroom. Today I will have an online session with a class of 12 from 9-10, moderate some e-learning assignments for two hours, then spend 4 hours in a real classroom in the afternoon. And tomorrow will be completely different. I no longer have to worry much about end of class evaluations. Instead I have to assess the added value of each hour of interaction with a client group.

    Tools such as Moodle are increasingly in use to manage the complex movement of a group of learners through their class, and to track the development of individuals over time. So trainers have had to move from being subject matter experts and educators, to being adept project managers, consultants and software designers.

    More change

    Expect more rapid change: as neuroscientists explore more of the functions of cognitive processing and memory, we get more useful clues about how people are motivated to learn in the first place, how they take in and store information, and how different types of training can be organised better to improve results. Two examples of how we can use the lessons of neuroscience follow:

    Use it or lose it

    The evidence is that the brain is plastic: everything we do and learn changes our brain. This “experience dependent plasticity” means that we must continue to develop our skills or see them atrophy. For training policy this means that keeping project managers, for example, working effectively will require further training that keeps building skills. It’s not enough to rely on the initial PRINCE2 training to continue delivering results.

    The application of Rewards

    We are finely tuned to prefer tasks which deliver small dopamine hits - feelings of success. Games designers use this to advantage by structuring games so that people have lots of little success experiences, and that keeps them playing. As we deliver more e-learning and blended experiences, I’m reminded of the wise words of a javelin coach: “If you can’t get a kid to throw the spear 15 yards in the first half hour, you’ve lost him.”

    As we understand more about how the brain works, we’ll have the chance to fine tune each learning experience to deliver skill development faster, and with as much fun as possible for the people involved-including the trainer.

    Evolution conjures up images of progressive change, sometimes fast, other times slow, a progression to something better, the survival of the fittest.

    Training has always been - will always be - driven by a human need to develop skills and capability, and by organisational drives toward improved results. The twin challenges remain the same as they have always been: to ensure content is appropriate, relevant, up to date and above all proven and valid for the purpose; that the means of delivery works for the participants in delivering effective and efficient development of capability.

  • 23 Jan 2012 12:00 AM | Anonymous

    Essex police authority has awarded a £32m deal for crime management systems to Northgate Information Solutions.

    The framework agreement contract will see Northgate supply, install and maintain an investigation management, intelligence and defendant management IT system for Essex and a number of other police authorities, according to a notice in the Official Journal of the European Union (OJEU).

    The 10-year agreement will be open to all police authorities and other law enforcement agencies within the UK, although eight police authorities are expected to be among the early adopters: Bedfordshire, Cambridgeshire, Essex, Hertfordshire, Norfolk, Suffolk, City of London police and Kent police

  • 23 Jan 2012 12:00 AM | Anonymous

    Unite has ended industrial action at Fujitsu after union members accepted a new offer from the IT giant.

    The union welcomed the agreement, which ends a long running dispute that has affected sites in Crewe and Manchester since June last year.

    Unite national officer for IT and communications Kevin O’Gallagher said: “The agreement reflects a significant improvement in relationships with the company since last year. It means better protection for pensions for Fujitsu employees across the UK and pay rises for most Manchester staff. There is a renewed commitment to work together through our agreements which can help avoid conflict in future.

  • 23 Jan 2012 12:00 AM | Anonymous

    IBM has announced fourth-quarter 2011 diluted earnings of $4.62 per share, compared with diluted earnings of $4.18 per share in the fourth quarter of 2010, an increase of 11 percent. Operating (non-GAAP) diluted earnings were $4.71 per share, compared with operating diluted earnings of $4.25 per share in the fourth quarter of 2010, an increase of 11 percent.

    Fourth-quarter net income was $5.5 billion compared with $5.3 billion in the fourth quarter of 2010, an increase of 4 percent. Operating (non-GAAP) net income was $5.6 billion compared with $5.4 billion in the fourth quarter of 2010, an increase of 5 percent.

    Total revenues for the fourth quarter of 2011 of $29.5 billion increased 2 percent (1 percent, adjusting for currency) from the fourth quarter of 2010. While currency provided a benefit to revenue growth of approximately 25 basis points in the quarter, currency movements since the company announced its third-quarter earnings in October impacted fourth-quarter revenue by approximately one point of growth, or $300 million.

    "We had a strong fourth-quarter performance, capping a year of record earnings per share, revenue, profit and free cash flow," said Ginni Rometty, IBM president and chief executive officer. "We delivered outstanding results in all four of our strategic initiatives for the quarter and the year, as we continued to realize the benefit of our long-term investments in growth markets, business analytics, Smarter Planet solutions and cloud. We are well on track toward our long-term roadmap for operating earnings per share of at least $20 in 2015.”

  • 23 Jan 2012 12:00 AM | Anonymous

    Edinburgh councillors have voted down a proposal to outsource a raft of facilities management services to Mitie.

    A report recommending the outsourcing of 2,000 jobs in a seven-year deal worth £170m to Mitie was rejected by councillors when it came to the final vote.

    Councillors voted to terminate the procurement process without any contract award.

  • 23 Jan 2012 12:00 AM | Anonymous

    CSC announced that it is collaborating with leading wireless network and performance management software provider Proximetry to leverage its AirSync™ platform as the foundation of a first-of-its-kind smart grid network management cloud service.

    For utility operators seeking to proactively and efficiently manage their smart grid communication networks, CSC’s AirSync Cloud offering provides network management to multi-vendor, multi-radio public and private networks that is secure, reliable and highly-available. The solution, initially to be offered in the United States with future markets launching later in 2012, will be hosted from CSC’s industry-leading trusted cloud data centers.

    “In the age of instant information, rapid response and smart devices, utilities must have an unprecedented level of expertise in managing the change impacting communication networks,” said Jill Feblowitz, vice president, IDC Energy Insights. “Agility, flexibility and the degree to which they’re equipped to extend the same network communication service levels provided in the data center to the grid transformation — with the right people, processes and technologies — will determine when and how well the benefits of the smart grid will gain traction.”

  • 20 Jan 2012 12:00 AM | Anonymous

    Sony Ericsson has posted a net loss of €207m during the fourth quarter.

    This loss is ahead of its buyout by Sony, as shipments of mobile units decreased by 20 per cent annually. The firm had posted an €8m profit in the previous quarter.

  • 20 Jan 2012 12:00 AM | Anonymous

    Westminister Council, on behalf on other councils, has put out a tender to outsource back-office functions, in a bid to improve efficiency and cut costs.

    The tender is part of the Athena Programme, which is a pan-London initiative which aims to create a regional single ICT platform for public sector organisations.

    The tender states: The Council, the London Borough of Hammersmith and Fulham, and the Royal Borough of Kensington and Chelsea ("the Tri-Borough Authorities") have aligned themselves as strategic partners and have embarked on a number of different activities to streamline services and deliver savings. These activities include a programme of work looking at an outsourced service (including the hosting and where applicable the processing of transactions) of the back-office services which are the subject of this notice, namely, finance and procurement, HR and payroll, e-Sourcing, property asset data management and business intelligence ("back-office services").

    The Council is undertaking this procurement on behalf of itself and each of the other Tri-Borough Authorities and the following London Borough Councils: Bexley; Bromley; Camden; City of London Corporation; Ealing; Hackney; Hammersmith and Fulham; Hillingdon; Hounslow; Islington; Kensington and Chelsea; Kingston upon Thames; Newham; Richmond upon Thames; Southwark; Sutton; Tower Hamlets; Waltham Forest; Wandsworth, JVC (as defined below), any arms' length management organisations, subsidiaries or other companies or businesses under the control or influence of any of the aforementioned London Boroughs and any Schools within the control of any of the aforementioned London Boroughs (each a "participating authority"). The Council will enter into the Framework on behalf of itself and each of the other participating authorities.

  • 20 Jan 2012 12:00 AM | Anonymous

    Skanska UK has signed a five-year enterprise agreement with Asite for the use of Asite’s award winning collaborative Software as a Service technology (cSaaS). The deal sees Skanska implementing Asite’s eProcurement and supply chain integrations solutions throughout the entire organisation and across their supply chain relationships.

    Asite’s technology will provide Skanska with a single integrated solution for the procurement process across their portfolio of construction and facilities management works. Both Skanska staff and their supply chain partners will use Asite eProcurement to manage their purchasing cycle including tendering, purchasing, delivery logistics and goods receipt, and payment processes. As part of the enterprise solution Asite will be closely integrating with Skanska’s back-office ERP system, Sage Intuita. By automating and streamlining the purchasing process, Asite’s technology significantly reduces transaction costs and will ensure that Skanska are furthering their aim of creating true partnerships with their supply chain.

    Andy MacAskill, Skanska UK Supply Chain Director, said "We are delighted to be working with Asite as our platform provider to deliver eProcurement across our supply chain. Asite will be an important part of our vision to deliver a One Skanska best practice approach to the procurement of materials, products, services and subcontract packages throughout project lifecycles. The implementation of eProcurement will provide significant efficiency benefits to our supply chain and contribute to establishing Skanska as the leading construction procurer in the UK."

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