July
29th, 2004
by Richard
Arenaro, Vice President, Information Services, Commerzbank AG
My observations
over the last five or six years have lead me to certain conclusions
with regards to overall IT management:
- There is
a clear void in creativity with regards to professional staff
growth and overall retention.
- The continued
lack of creativity leaves corporate IT management vulnerable to
raids and future dotcom "type" bubbles.
I'm not referring
to complex salary packages or the canned development programs that
are typically offered. There will always be more money, but
the ability to retain our best and brightest requires a more complex,
even radical, solution.
Of the total population of IT managers that I know, only a handful
were able to survive the dotcom storm. It is not that the others
didn't try. But this particular handful really took the
time understand the types of career and personal decisions that
their IT staff members faced. Money, stock options, and
campus environments were very successful distractions that start-ups
used to lure our most valuable human capital.
And here we are several years later, and the same valuable talent
that left for greener pastures is now being shunned--at least in
some cases. I know of many hiring managers that will simply not
touch people who capitalized on the bubble through start-ups, consultancy
or otherwise. Who is to blame? Both sides, perhaps? My observation
is that some senior managers were simply shell-shocked by the exodus
in such large numbers. They simply froze and could not react. Or,
they reacted in a way that was doomed to fail: the counter-offer.
In that type of environment, bidding wars set up a feeding frenzy
that simply took on a life of its own.
If we want to retain the best and the brightest, managers
must learn to avail themselves of enticements that are more than
simple distractions. Training, promotions and salary adjustments
are all acceptable instruments for motivation. But the creativity
should not stop there. Managers must also understand that employee
loyalty is a complex process; one that needs to be earned if it
is to be received.
CONCEPTS
FOR BETTER MANAGEMENT
Here are some suggested concepts for managing employees
during competitive times:
- Learn
what's going on in the life of your employee.
Not to a level of inappropriate detail that could be invasive.
But enough that you can make an assessment of their professional
mindset. Typically, employees facing personal challenges
that often reflect in their performance. Without knowing
any better, we simply reprimand them and add to their stress level--and
resentment. Do we really think this will improve the situation?
- Protect
your staff from unnecessary politics and red tape. Often,
as senior managers, we require sounding boards for proposed changes
or corporate strife. This is fine, but don't unload your burdens
on your employees. Positive reflecting can often bring out the
most creativity in your staff, but whining and complaining
about the latest merger, project deadline or corporate governance
change can be very damaging. By doing this, we put the
employee in a position where not only do they need to worry about
their own projects, but our problems (and negative opinions) as
well. This process, repeated enough times, creates a breeding
ground for rumors and speculation. Does this mean you should treat
them with kid-gloves? No, just use some wisdom in venting. Positive
reflecting allows them to be part of the solution, rather than
a helpless observer of the problem at hand.
- Be
honest. Nothing nurtures a relationship more (personal
or professional) than simple honesty. Speak to them openly about
their careers, goals and future objectives. Give them honest (un-biased,
non-self serving) opinions on their performance and their future.
Be less concerned about the type of news your giving and focus
more on honesty. If you're dishonest of misleading, and
it is later revealed, good discussions or bad discussions will
come back to haunt you. As people, we don't always like
what we hear, but we always benefit from the truth. And
always confront rumors head-on.
- Prepare
them for the life beyond your company. Quite often, senior
managers hide their best employees under a veil, fearful that
they'll be lured by a better opportunity. So we often don't like
to discuss items like promotions, career development and the outside
markets. But what really defines a "better opportunity"?
As senior managers, we inherently, by nature of our title,
whether direct or implied, have a huge influence over our employee's
mindset. It is far better to educate and discuss honestly
with an employee all possible aspects of their career. Might you
lose some in the process? Sure, but not likely. I've often found
that employees respect open dialog so much, that they assign a
genuine, personal, and positive value to their relationship with
you. Subsequently, they have much higher expectation of a competing,
potential employer with regard to the manager-subordinate relationship.
This is something that that transcends compensations packages
and temporary "out-of-the-box" technology distractions.
We often talk
about creating business value in IT. We all want to reduce capital
expenses and lower operational costs to do our part in driving up
company profitability. Indeed, it our obligation to do this as senior
IT managers. However, we need to realize that the bar of excellence
has been permanently raised and these typical corporate objectives
are simply business as usual for any senior IT manager worth his
or her salt. If our desire is to truly make a long-term
impact to the business, we need understand that these objectives
can only be reached by creatively developing and nurturing our most
valuable asset: our people. Only then will IT be protected
from losing their best and brightest to the next bubble.
© Richard
Arenaro , 2004
About the Author: Richard Arenaro, Vice President, Information
Services, Commerzbank AG
Richard Arenaro is a Vice President at Commerzbank, responsible
for information technology for its North American Banking Business.
His experience spans 19+ years across various industries, but with
a primary focus in financial services sector. Mr. Arenaro’s
responsibilities include all aspects of infrastructure, engineering,
messaging, operations, security/compliance and disaster recovery.
Honored with a Certificate of Achievement in Computerworld’s
Honors Program for Visionary Use of Technology in the Financial
Services Industry, Mr. Arenaro continues his pursuit of creating
unique opportunities of value within IT. He
is an active member of the Executive Council of New York, and his
organization’s IT department has been used in various case
studies as a model for disaster recovery and emerging technologies,
most notably by EMC and Hewlett Packard. Mr. Arenaro has contributed
to numerous articles on business continuance for various periodicals
and publications, including Information Week, Network World, PC
World Malta, Byte and Switch and has also has appeared on ABC’s
20/20 Television Show. His organization was commended by the Federal
Reserve Bank for their outstanding leadership and operational systems
recovery during, and the days following the tragic terrorist attacks
of September 11, 2001. His previous professional background includes
senior IT management positions at Lifetime Television, Citibank,
Credit Suisse / First Boston and NYNEX Material Enterprises. He
continues to drive information technology services forward by assembling
and mentoring outstanding technical professionals who genuinely
care about the services they provide.
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