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Something to think about while watching the British GP this weekend...

Greg Smith, the guest blogger for this post, has been a colleague for a little while. Greg is an ex-CIO and today is a CIO advisor with Capgemini Consulting. I've personally found Greg's insights to be just that - insightful! - and when I saw an email from Greg as part of an internal discussion (one of many!) on 'agility', I thought it was too good to just file in an outlook folder, and Greg kindly offered to write this post. I hope you enjoy this as much as I did when I read it.

Something to think about while watching the British GP this weekend...

By guest blogger, Greg Smith

I was recently reading an article on how IT can become a genuine partner to the business and, as is common in such discussions, the focus turned to how IT needs to be more agile and responsive if it is going to truly support the business in its drive for speed and agility. In order to illustrate the point a familiar type of analogy was quoted:

Being an agile business has been described as the ability to “change a wheel on a bus at 60mph”. An agile IT function is the lynchpin in ensuring the business ‘bus’ can continue running and even change direction without having to drop a gear or worse, engage the emergency brake.

I guess we have all heard or read similar analogies many times over the past few years, however, at the risk of appearing overly pedantic, I think the analogy is potentially taking IT down the wrong path. The concept of ‘changing the wheel on a bus at 60 mph’ whilst evocative actually suggests a capability that could be construed as downright dangerous, even if it were possible - similarly changing the engine on a plane mid-flight!

I think a better analogy along the same lines is the ability of a Formula 1 pit crew to change from dry tyres to wet tyres in 10 seconds. Here we have a sophisticated sense and respond mechanism, executed faultlessly, with the ability to directly impact outcomes. If you predict the weather conditions better than your competitors, respond appropriately and carry out the pit stop perfectly you will create a significant opportunity to outperform your rivals. Pushing the analogy further, the opportunity will be short-lived. Your competitors will very quickly change their tyres over to wet weather tyres and put themselves back on a level footing. However, the same finely-honed capability, which could be categorised as business agility, will present another opportunity to out perform the competition if it stops raining, the track dries out and a decision is taken to revert from wet tyres to dry.

To thoroughly flog this analogous horse to death, the skill of the individual driver, which could be mapped onto the CEO or CIO role within a traditional business, is important but not critical. The driver sometimes has to be adept at performing at the margin, for instance being able to drive on a damp track with dry tyres, whilst at other times they have little ability to change the outcome directly through their own skill – driving on a drying track on wet tyres. However, the real competitive advantage lies with the organisation of the pit crew, their ability to choose the appropriate course of action slightly more quickly or more often than their competitors, and most importantly their ability to execute faultlessly.

Personally, this example throws up an interesting additional point with the co-existence of high-agility and strong process rigour. Given that we often think of process rigour as the enemy of agility, which is a view I generally concur with, then we probably need to become more precise in how we define the characteristics of strong process adherence that lead to reduced agility.

Comments and contradictions gratefully received

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Well, hats off to our colleague Greg Smith for what transpired to be a blog post of real prediction. Here’s how the BBC reported the decisive moment of the British GP on Sunday: ‘The decisive moment of the race came... [Read More]

Comments

A great post Greg! I like the analogy; a great impovement on the 'moving bus'. As it so happens, I've just blogged something along similar lines about new leadership thinking based on 'Complex Adaptive' approaches. (click on my name to read the post).

Great concept - loved it and will probably use it too. But I guess there is one critical difference, the F1 pit is usually a transient event for the pit crew rather than a 'Business as usual'. Hence they can operate at split second speed. During the off-season, i guess the pit crew performs drills, maintenance etc, but they are not expected to be on their toes.
IT departments usually operated at this 'off-season' mode. It is only when you they get involved in a project, that they are needed to work as a proper F1 team. However, as inertia is difficult to beat, you rarely see them leave the garage :) Gartner has just come out with a report which tells us the blinding obvious - 'IT Too Slow to Change and Adapt to New Technologies'.. Check it out
http://www.cio.com/article/429313/Gartner_IT_Too_Slow_to_Change_and_Adapt_to_New_Technologies/1
Great post!!

Vinesh,

I agree with your comments up to a point. I certainly agree that the pit lane on a race day is not entirely business as usual - and that the adrenaline level, not to mention commitment level, of the pit crew would be hard to match within most IT teams!


However, on another level re-fueling and changing tyres is precisely BAU. Eighteen races a season, 18 x 2-day practice sessions, not to mention the countless off-season tesing and practice sessions. I can think of a large number of core IT operational processes that don't get performed anything like that frequently in a year.


Even if the non-race tyre-changes are less frenetic the basic activities are identical and this to me is getting at the heart of the analogy. A pit crew changing tyres is probably as extreme an example of process discipline as it is possible to imagine. And yet this incredibly mechanistic routine is also the basis of leading-edge business agility and an ultra-sophisticated sense and respond mechanism.


Endless practice will allow a pit-crew to change tyres in 10 seconds not 11, but it is the alignment of faultless execution of this process and the most sophisticated sense and respond capabilities that wins races. Discipline plus insight.

Thanks


While we flogging this one to death, here is another curve ball. Is it really the driver who is the CEO/CIO or is it the Racing boss. While drivers have their skills; however, once they change teams their performance seem to fade away. Barrichello kept snapping at the heels of Schumi during the Ferrari days, but kind of disappered after moving to Honda. Similar stories around Coultard, Webber etc. However, team principles like Ron Dennis and his technical director have stayed consistent and seem to make all the key decisions around pit, fuel & tyre strategy on a race day + all the others bits off it. So we can look at them as the CEO/CIO while the two drivers act as two projects with their project managers.

Vinesh

I like your build a lot. Following the theme through instead of project managers I guess you could look at the drivers in the same way that the City regards star traders.

Often these guys get paid more than their bosses but are entirely results dependent and tend to find the door pretty quickly if their decisions back fire.

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