Business Transformation Requires Transformational Leaders

With the holidays consuming a significant amount of our individual time and energy in the weeks ahead, it's important to recognize that effective risk governance actually takes some of the seasonal pressure off.

Some conversations you remember better than others. This one I will never forget. It was back about a dozen years ago when I was working with a large consulting firm and was somewhat perplexed and angry with executive management over failure to make a decision. The facts were clear and compelling. The metrics made the case for change.

From a historical perspective, one could argue that there has been an evolution from inhouse provision of services, to outsourcing, then to offshoring, with crowdsourcing being the next stage. IT outsourcing expert Rob Aalders writes:

The debate on outsourcing raises serious questions. Should we outsource a core function? Why should someone else be able to manage part of our business better? Does outsourcing save money? What risks does outsourcing raise? What benefits does it bring?1

A hybrid of outsourcing and insourcing is the most common sourcing strategy for information and communications technology (ICT) in organizations today. It's very rare to see an organization that has outsourced 100% of its ICT needs to third parties; likewise, it's rare to see one that keeps everything inside.

The pursuit of innovation remains one of the cardinal issues of business today. Innovation is viewed as the secret ingredient permitting companies to grow, to remain competitive, and to develop products and strategies capable of ensuring the firm's survival. Yet internal innovation is fraught with problems. Ideas abound, but the essential screening and testing processes are both costly and uncertain.

"Partnering" -- besides being a mandatory buzzword -- is a curious term. Nowadays, instead of taking over a company, we partner with them. We don't sell anything anymore; we partner. And now, rather than outsourcing, we create strategic partnerships.

When they tell you to think outside the box, I was once warned, don't take the bait: they don't really mean it, and if you venture too far from the ranch, they'll permanently close the gate behind you. Innovation is a stepchild in most companies, even the ones that describe themselves as creative.

When transitioning to agile, some traditionally educated project managers face a rude awakening when they first run an actual agile endeavor. They looked forward to the increased transparency and the daily reports they'd receive from their team, but suddenly they're hit by reality in the form of real customer contact.