The Entrepreneurial Response

It is surprising the difference attitude can make. L. Gary Boomer, CEO of Boomer Consulting, Inc., made this quite clear during his presentation at the Technology Conference (Australia) held in September, 2007.  While acknowledging that technology advancements make choices more complex, he believes a firm's attitude toward technology management has the most significant effect on its performance.

Ideally, firms should take what Gary calls the “Entrepreneurial Response,” which builds on the platform of an IT budget and plan. Firms that take this approach have a clear direction, ensure they have the capabilities to implement, manage and leverage new technologies and are confident in the outcomes.  While this approach requires more work upfront in planning, the end result is a simplified and more effective IT department.  It opens the door to process transformation and provides new ways to engage with clients.

The alternative is a “Bureaucratic Response” in which IT is not planned. Firms with this view see IT planning as dangerous and are often confused as how to proceed. A feeling that that the firm’s suppliers have control usually accompanies this viewpoint.  Technology is seen primarily as a cost—a necessary evil—rather than an enabler of new opportunities.  Often these firms make ad-hoc, unplanned IT decisions which result in cutting-off future options.

A planned approach to technology may sound like more work, but it pays dividends.  The first step is to develop an IT plan and budget, which should be aligned with the firm's overall strategic and business plans. The first question we ask when conducting reviews is, “What are the firm's strategy, objectives and direction?”  Make any IT and process decisions in this context. Few firms have a documented strategic plan, yet the importance of writing a short, one page plan to set a framework for business decisions cannot be under-estimated.

In summary, the elements of an IT plan and budget include:

• Assess the current position
  What hardware and software do we have? How do we manage our IT? What are our current issues? What projects do we have underway? What are our successes and failures?
• Scan the environment
  What are the suppliers saying? What is happening in IT? What are your competitors doing?  Clearly the current issues are document management, client portals, and dual screens, but there are many more emerging opportunities.  What will be the effects of YouTube, podcasts, blogs and web-based applications from companies like Google?  Ask an expert what’s going on.
• Establish your "light on the hill"
  What do you want to be utilizing for IT and process change in three years? What are your top five strategic priorities? Are these aligned with the firm’s strategy?
• Determine the projects
  What projects will help your firm become the "light on the hill" and achieve its top five strategic priorities? What resources will be required? What benefits will these deliver? How will the project be managed? How much training will be required?
• Prioritize and schedule the project list
  What is the order in which projects should occur? Who will own the project?
• Prepare a three year budget
  What assumptions are currently in place (useful life, storage, training, pricing)?
• Prepare a project resource plan
  Do team members have sufficient time to complete tasks? Evaluate whether the overall plan is achievable given resource constraints and adjust plans objectives, priorities and plans accordingly.
• Establish IT governance
  What expenditure approvals are required? How will project status be monitored and managed? Who will be accountable?
• Ongoing review
  How often will the plan be reviewed and updated? How will we get feedback from users? What ongoing training is required?

Do you want a firm that can move confidently forward with its planning and investments in IT?  Dedicate sufficient resources to implement new processes and technologies, and adequately train employees to ensure maximum benefit.  In addition, plan new systems to ensure compatibility with future technologies.

About David Smith

David Smith is Australia's most experienced specialist independent IT and process consultant having over 30 years involvement with accounting businesses. He was managing partner of PKF, Sydney; he created PKF CRS and Superfund software; he is the strategic advisor to a national accounting firm and is the coach and to many small firms. He was the 2003 National President of the Institute of Chartered Accountants in Australia.

FMRC Smithink is an Australian based joint venture between Andrew Geddes and David Smith. They deliver a range of seminars and consulting services to accounting practitioners and other professional service firms. For more information, or to sign up for the free monthly e-newsletter, please visit www.fmrcsmithink.com

david.smith@smithink.com.au
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