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Director, The Center for Information-Development Management
http://www.infomanagementcenter.com
Planning is an unnatural process; it is much more fun to do
something. The nicest thing about not planning is that failure
comes as a complete surprise, rather than being preceded by a
period of worry and depression.
Sir John Harvey-Jones
What are you doing to respond to the slowdown in business
activities? How is your company reacting? Layoffs? Benefit
cuts? Project cancellations? Slower release schedules?
Reorganizations? We're watching the trends closely and
providing the assistance that CIDM members request to help them
make sound business cases.
Last summer, we conducted a comprehensive survey of business
practices surrounding staff resources. We learned that most
managers were looking for ways to retain valued staff and
recruit in a sellers' market. This year we are working hard to
update the data. To help with the update effort, please
complete our latest
Zoomerang survey.
In preparation for the October Best Practices conference, we
want to know how you and your organization are being affected
by and are responding to the slowdown.
In a recent conversation with Roger Masse, manager of the STC
society-level employment committee, we learned that May 2001
was markedly different from May 2000. Last year, the employment
booth at the STC annual conference was filled with job listings
but there were no takers. This year, the tables had turned—
lots of job seekers and few openings to be found.
Here are a few trends we've noted. We're concerned, however,
that many choices are poor ones, choices that threaten the
capacity of information and training developers to snap back
when the economy improves.
- The pressure is on headcount. To improve the stock analysts'
assessments, companies are focused on reducing the payroll.
That means both eliminating contract positions and laying off
permanent staff.
- Reorganizations continue to be the typical response to
problems at home. When in doubt about how to solve problems,
reorganize and perhaps the problems will go away. For
communication managers, the pressure is once again to fight
off decentralization. Fewer middle management positions and
tighter cost controls in the hands of business-unit managers
result in moving writers into the product-development groups.
- For the past ten years, few opportunities existed for
independent information-design organizations to handle whole
projects. Most of the design and development work remained
in house. In a recent reversal of course, managers tell us
that they're looking for vendors to handle whole projects
externally. External projects, rather than contract employees,
help reduce headcount. The problem for managers is that few
companies remain that know how to design innovative
communication.
- Outsourcing entire information-development departments is
being considered in many beleaguered industries. Outsourcing
the staff, not just the projects, is the ultimate headcount
weapon. Vendors handle payroll, benefits, even project
management. However, they're not selected for their design
expertise but for their ability to handle large budgets. Why
outsource information development? When executives outsource,
they fail to recognize information development as a core
skill. Outsourcing may not reduce costs, but the stock market
views it favorably.
As we have seen in every other economic slowdown, travel and
training budgets are the first to disappear. Companies make
poor short-term choices without regard for their future
impact. It is smarter to invest carefully in staff growth and
be ready when the economy turns around.
- The same goes for investments in new technology, particularly
content-management solutions. We find numerous projects being
postponed indefinitely or cancelled outright. Although budget
considerations are important, the slowdown provides you an
opportunity to prepare your information for content management
and single sourcing.
- When budgets are tight, metrics increase in significance.
Responding to the need for cost controls means knowing what
your projects cost in the first place. You need to know how
your development dollars are being spent, whether each
expenditure is justifiable, and if unit costs can be reduced
further. At the same time, you are asked to prove your value
by calculating return on investment.
- No less work to do but fewer staff to do it—is it a trend or
a continuing reality? How do you respond? Smarter or harder?
Remember to make your plans (and get your budget in line) to
join us at the most productive of all our industry conferences—
Best Practices 2001 in October. Learn more about the trends and
how your friends and colleagues are choosing to handle them.
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