Supporting SaaS Without a “Silver Bullet” Mindset (Part II)

by Mark Gavora on September 15, 2009

Last week, I touched on the first two real-world problem areas of supporting a new technology like SaaS without the sometimes-magical “silver bullet”failed-tech-mgmt mindset.  Today, I’ll explain the final two.

Problem #3 – Just do it!

(Meaning: Distributing the innovation without the structure or support to enable it to succeed.)

We’ve all seen this before: it occurs when a technology is implemented without effectively managing the needs of the field.

Here’s what it looks like: corporate goes to great lengths to build a solution that makes a lot of sense where the infrastructure is plentiful.  However, your field offices, manufacturing plants and certainly the drop trucks do not have a comparable infrastructure. Outside of corporate, the solution fails miserably and the field must find a workaround. Even worse is when outdated policies conflict with a seemingly straightforward solution. Undelivered mail can be sorted and corrected in the mail center with new technology; however, many of the operating companies require that mail to be returned to the operating company for processing. The benefits of the new capabilities never materialize. Additionally, the rift between corporate and the field grows and complicates future enterprise-wide initiatives.

Problem #4 – You will be assimilated. Resistance is futile!

(Implementing change without transitioning ownership throughout the organization.)

Here’s the scenario: you have the all-powerful senior leadership reinforced with massive budgets and executive support. They are united in their intent to change the way the organization operates and begin implementing changes across technology, policy and processes enabling the transformation to a better business.

But.

No efforts are made to work with the employees, obtain their opinions, or motivate them to accept the changes. Often executives simply state that “they will get their people in line should they learn about any problems.” Employees, afraid to lose their jobs, do not mention concerns. In the eyes of the executives, all is as it should be.  However, unbeknownst to them, an underground wave of resistance is mounting. Problems emerge, although no one seems to be at fault. Passive resistance is rampant, yet undetectable, as employees know the consequences of expressing their opinions. Progress continues to slow or even reverse.  In the end, the employees overwhelm the controls and mandates. Executives find a new initiative to focus on, and the business remains unchanged.

So, what do I do?

Organizations can manage these problem areas and others by investing in a concerted organizational excellence effort to support their SaaS implementation. ‘Organizational excellence’ refers to change management in its broadest form. It accounts for defining a strategy to support the initiative.

These strategies do not have to be all encompassing.  They should, however, articulate a clear vision of an improved working environment while accounting for how the innovation aligns with the corporate direction in terms of results that can be measured across outcomes, outputs and products. Examples of what I mean:

  • Things like transformational benchmarking — especially in conjunction with value stream maps (or even process maps with resource data) — enable the clarification of opportunities to improve effectiveness and efficiency and the definition of a future state that compliments the innovation.
  • Completing stakeholder and enterprise impact analyses proactively identify organizational requirements and contingencies (particularly in the field) that must be managed for a change to be effective.
  • Lastly, managing organizational change assures that employees, managers and executives transition from awareness to understanding to buy-in to, finally, ownership of the changes associated with an innovation.

There’s a lot to digest here, and more science than simple conceptual art.  If you are interested in this topic and want to learn more, please email me.  I can talk about this all day, and would love to show you how MIPRO Consulting can assist with your next technology implementation project.

Oh, a final plug: if you’re interested in what we stumble across daily (and think is worth talking about), follow MiPro on Twitter, or become our fan on Facebook.  We’re won’t waste your time – we promise.

Related posts:

Supporting SaaS Without a “Silver Bullet” Mindset (Part I)
The “Effortless” SaaS Implementation Ideal
SaaS Booming in Enterprise Market
CIOs Say ERP Systems Considerably Underutilized
What Workday’s Cash Infusion Means in Today’s Markets
Workday Named #1 Best Place to Work in Bay Area
Big Hit: Workday Raises $75M in New Funding
How Economic Chaos Can Mean Opportunity for Smart, Daring Firms
Field Notes: Dave Duffield and Aneel Bhusri Kick-Off Workday Rising ‘08
Workday: Dave Duffield 2.0 Gaining Steam
Salesforce.com and Where SaaS Goes From Here (Eventually)

Related web content:

MiPro Consulting: Workday Professional Services

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{ 2 comments… read them below or add one }

1 Khürt September 15, 2009 at 7:16 am

The security and legal implications ( of cloud computing ( SaaS, PaaS, and IaaS ) is a something with which a lot of large enterprises is struggling. I don’t think that they are looking for a “Silver Bullet” but they are looking for ways to mitigate the increased risk (pushing data over the Internet is arguably more risky that withing one’s own network) of relying on a boiler plate contract that limits their ability to follow already well defined security policies. How are your customers adopting the technology and addressing the lack of transparency (Amazon.com does not allow security audits or scanning), lack of accountability for breaches (read the Amazon.com TOS), lack of jurisdictions over data (where is your data storead?), and data portability (can I quickly move from AWS to Azure)?

Quite frankly the security of cloud services is immature. Until things change large enterprises will stay away.

Read Hoff’s blog:
http://www.rationalsurvivability.com/blog/?tag=cloud-security

2 Jeff Ventura September 15, 2009 at 9:13 am

Hey Khurt. Great comment.

I agree that SaaS is a platform coming of age, but it’s tough to say enterprises are staying away — at least in certain technology silos. Everyone knows about Salesforce.com, the SaaS poster child, but we’re seeing quite a few companies (some very big) move core HR, Financials and Payroll functions to Workday’s technology. (We even use Workday here ourselves. And Salesforce.) And for quite some time, payroll has been outsourced to a SaaS-like model rather than being run entirely in-house.

But the objections you list are entirely valid, and they read basically like a laundry list of SaaS’s enterprise stumbling blocks. These are slowly being overcome or at least mitigated to some extent, but when we hear of a company who won’t go SaaS, it’s often the security and transparency and IP issues that prove to be the obstacles.

Are these getting resolved? Somewhat. Resolution is a sticky word, and what makes one client satisfied will only make another doubt the model further.

It’s a work in progress, but SaaS and the enterprise aren’t the oil-and-water mix they used to be. In fact, we see quite a few who are willing to trade in-house cost, staffing, complexity and resource burden for a bit of security questions and operational opacity. It becomes a management issue and something to always monitor.

Like everything it’s a tradeoff matrix.

Thx again for your comment.

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