Wednesday, December 2, 2009

MBTA -- Management By Timeshifting Around

How do good managers stay in touch? How do they coordinate? First came MBWA, then MBFA, and now it is MBTA. Here’s the story:


One of our profession’s perennial problems is that managers become complacent and lose touch. In traditional hierarchical organizations managers risked losing touch by relying on layers of intermediaries. Later, in the age of information systems, managers risked losing touch by relying entirely on computer generated data.


Thus, MBWA: Management By Wandering Around. MBWA is a management method relying on interpersonal (face to face) contact. The manager gets “into the trenches” with the workers. MBWA managers are widely thought to be more effective than managers who do not wander around. MBWA, also known as Management By Walking Around, was first publicized by HP’s David Packard in the 1940s. It was revived and became broadly recognized due to the highly influential book In Search of Excellence (Peters and Waterman, 1982).


With the dawn of widespread distributed/virtual organizations and teams in the 1990s, MBWA was clearly impossible and had to be substituted with new management approaches. In 1999 I wrote about MBFA, Management by Flying Around, in my book “Global Software Teams” (Carmel, 1999). I did not coin this term, though my book played an important role in publicizing it. I learned this new acronym from pioneering virtual managers at IBM.


In the 1990s, we all believed that the dominant work configuration was that of clustered locations in which co-located tech workers cluster together in an office. For example, American workers were in an office building in Reston and the Irish workers in an office building in Stillorgan, and the Swedish workers in Kista, the Chinese workers in a skyscraper in Pudong, and so on. Therefore managers were able to fly from location to location in order to meet with the local team members.


One decade later there are now several million knowledge workers involved in international distributed work groups. Technology has become much friendlier since the 1990s. However, travel is prohibitive for most of these teams and thus, MBFA is impossible.


Instead, today we see MBTA, Management By Timeshifting Around. Managers stay in place, but timeshift to different locations by adjusting or scattering their work day. Timeshifting means adjusting one’s work hours to accommodate another’s schedule. For example, Sarah, a timeshifting tech manager in the Virginia tech corridor near Washington, timeshifts to her 10 team members’ work time in Germany. She starts work at 06:00 local time and overlaps half her workday with her German colleagues. This allows her to interact synchronously with her German counterparts.


My conceptualization of MBTA came about from more than a decade of research including hundreds of formal and informal interviews with managers all over the world. This research is conducted, in part, with my colleague here at AU, Alberto Espinosa. In these time zone-separated work groups we have found one management/coordination solution prevalent nearly everywhere: timeshifting.


MBTA managers can potentially achieve many of the advantages of MBWA and MBFA. They can have one-on-one intimate conversations via Skype or their mobile telephone. They can coordinate “together” with others examining work products. They can tell a joke. They can develop key personal relationships and trust.


  • Carmel, E., (1999), Global Software Teams. Upper Saddle River, NJ: Prentice Hall.
  • Peters, T., Waterman, R. (1982), In Search of Excellence: Lessons from America's Best Run Companies, Harper and Row, New York, NY, .

Thursday, March 19, 2009

IT workforce immigration & knowledge-worker visas

Watching the nasty debates between two well-meaning colleagues highlights the difficulty of finding a policy solution. Check out this vicious exchange between Vivek Wadhwa of Duke University and Ron Hira of the Rochester Institute of Technology on CNBC on this subject (BofA Shunning Foreign MBAs?)

I never watch Vivek and Ron spar without the irony that both gentlemen are patriotic Americans and both are of Indian descent -- where INDIA is always the subtext in the contours of debate. Vivek is an immigrant and Ron is a first-generation American. I've come to know both and contend that both care deeply for America and take their strong positions from that core value.

Vivek believes that importing smart people will make America more successful. Ron believes that importing cheap people distorts the economy (and only helps the corporate elites) by displacing American-born workers.

Friday, December 5, 2008

Liaison – A job title for globally dispersed tech teams


Like the old cliché ... Eskimo have many for words for snow, in the IT business, we have many names for the person who is a liaison in globally distributed IT work. In these types of work structures, it is critical to have a person who bridges time zones and culture. In fact, these global teams would not able to function without the liaison.


The liaison is typically a mid-level manager, such as a project manager. He/she is the one who stays up late at night to make their critical telephone calls. He/she is the one who is able to speak across cultures and across languages.


All the successful technology companies that I've encountered over many years have liaisons -- either formally or informally. I encountered them in Indian companies, and American companies, and Chinese companies, and in Israeli companies, and many more.


So, here I document some of the many names that we give to this important person.

· Liaison -- in the book Global Software Teams (Carmel, 1999).

· Window men – from China (submitted by Yu, Yanjun).

· Point person (Lee et al 2006).

· OC - On-site Coordinator -- in the Indian IT company Infosys (Carmel, 2006).

· Bridge

· Go-between

· Boundary spanner. This is more of an academic term that comes out of the technology management literatures. It describes a person who straddles inter- and intra-organizational lines. This isn’t strictly a liaison, but close.

· Linking pins (Harvey, et al 1992) refers to inpatriation in global corporations from the host-country. Again, close, but not exactly the same.


Please send me additional names and full citations where possible.



References:

· Carmel, E. Global Software Teams: collaborating across borders and time zones, 1999. Published by Prentice Hall-PTR.

· Carmel, E. Building your Information Systems From the Other Side of the World: How Infosys manages time differences. MIS Quarterly Executive, 5(1), 2006.

· Harvey; M Cheri Speier; Milorad M. Novicevic, The role of inpatriation in global staffing The International Journal of Human Resource Management, Volume 10, Issue 3 June 1999 , pages 459 - 476

· Lee, G. W DeLone, JA Espinosa Ambidextrous coping strategies in globally distributed software development projects - Communications of the ACM, 2006

Friday, October 3, 2008

What is the Caribbean model for competition in IT offshoring?

I was invited to speak this month in Barbados about the place of the Caribbean in IT offshoring. It was the first time I had reason to examine this region carefully. This comes in context of the competitive landscape: there has been remarkably rapid maturation of offshoring nations in just a few years -- from India, cascading to Brazil, Philippines, and on to smaller players like Egypt and Costa Rica.


How will the Caribbean nations compete in IT? Whether separately -- or as some collective under CARICOM? First, let’s be clear that we’re setting aside Cuba and Haiti in the rest of this analysis. Then, note that one must really distinguish between the larger nations, Jamaica (3 million) and DR (9.5 million) versus the smaller ones, like Barbados – with a population of 250,000.


If you use any framework to get some indicators on the situation (such as my “Oval model”), the Caribbean nations have few factors that could enable them to surge forward in IT. Yes, they have good "Quality of Life," they are stable locations, and they are business-friendly. But, what the region lacks is human capital in size and high quality that can be the foundation for an IT exporting industry.


A bold move could address this. What the region needs is an aggressive labor importation model. Without it, the region cannot be competitive in high-value IT/software work. After all, Americans, Canadians, Australians, Singaporeans, and Irish have aggressively imported talented tech labor that has made a difference to their technological success. If these economic leaders have done so, why can’t the Caribbean nations?


Interestingly, a Barbados-based firm, PRT, was a pioneer of this idea. At its peak around 1998, PRT imported 400 programmers into Barbados, mostly Indians, to work on nearshore jobs for American corporations (including blue chip Wall Street firms).


But PRT was not sustainable and it fizzled soon after the downturn of 2001.


[the photo on the right shows the building in which PRT was once housed, in the business section near the port entrance. The PRT building now has many satellite dishes on its rooftop.]


I talked to two former PRT employees, Pamela Abbott, now a British assistant professor, and Stephen Broome, who later co-founded and now runs one of the island’s largest IT firms, SCL. Both did not warm to the idea. “We tried it at PRT and it failed” was the refrain. Partially this was for cultural reasons—managing so many new migrant workers was just too hard.


Meanwhile, Barbados Minister Boyce, who opened our ministerial conference, had come in from awarding diplomas to 100 graduates of a certificate in medical transcription. Young Barbados workers will be listening to American doctors’ notes and carefully transcribe them to text. This is an example of the growth in IT enabled Services (ITES) in Barbados and elsewhere in the Caribbean. There will soon be 100,000 call center workers in the region according to Zagada.


However, such jobs are often fleeting and may be made obsolete in the coming years from better voice recognition technologies. The rise of Caribbean ITES may also be diverting limited energy that may have been better funneled at software and IT. What is a sustainable model for small island nations?


My talk was the 6th Caribbean Ministerial Strategic Seminar on ICT organized by the Caribbean Telecommunications Union (CTU).

Tuesday, July 8, 2008

Micro-sourcing

Is this the eventual global sourcing landscape?

Definition: sourcing knowledge work from an ecosystem of very small providers, most of which are contracted with over the net. Micro-sourcing is the opposite of mega-sourcing, which is the classic outsourcing approach in Fortune 500 firms where billion-dollar multi-year contracts for IT services are signed.

I coined this term to encompass an emerging smorgasbord of sourcing trends that I've observed: person-to-person, online programming marketplaces (e.g., Rent A Coder, Top Coder, eLance), globalization of consumer services, crowd-sourcing, multi-sourcing, commoditization of process, and open source.

Micro-sourcing is allowing clients to choose from a supermarket of providers for increasingly small, granular tasks and processes.

In the area of IT, Rent A Coder is a very successful case. I’ve followed this firm since 2003 and enjoy the thrill my students get when they’ve purchased something from this e-marketplace. I’ve also used Rent A Coder in a number of my studies.

I thank my colleagues at the NYU conference on “Global Delivery of Professional Services” May 2008, for helping me select this term.

Tuesday, March 11, 2008

On Israeli high-tech

In March 2008 I chaired the Technology, Innovation, and Start-Ups panel in the "Israel Biz at 60: Lessons and Directions in Israel's Business and Economy” that was held at American University. http://american.edu/israelstudies/businessconf/index.cfm

Here is a condensed version of my opening talk.

How many of you are old enough to remember that the industry that Israel was once known for was citrus products – Jaffa oranges? Today it’s high-tech.

Israel became the darling of the high-tech boom – that is -- in the last high-tech boom -- in the 1990s. The new darling is India.

I study global technology… I’ve been studying this area for many years. I’ve seen it become quite democratic. Whereas once a tiny cabal of elite nations did high-tech, now there are more than 100 countries exporting software products services / high tech services. I stopped counting when my Dutch co-author came back from a tour of North Korea’s software export firms.

With so many countries entering high tech, Israeli high-tech is no longer in the spotlight. It’s been somewhat forgotten. Yes, every once in a while Businessweek or The Economist run one of those articles, about how Israel has been successful in high-tech, but…

As a kick-off to this panel, let me take you on a quick tour of Israeli high-tech, noting Israel’s key success indicators along the way.

1. Israel high-tech has been very inventive. Important artifacts came from Israel in the last decade; some examples: the software firewall, the ingestible camera (for medical diagnostics); design of many Intel semiconductor chips that we use in laptops and other devices -- come in whole, or part, from Israel; Instant messenger (IM).

2. The US NASDAQ stock exchange. About 100 firms are Israeli, mostly tech startups; in numbers this is the second largest of foreign nations after Canada.

3. Israeli tech startups make up more than 2% of Israeli GDP; which is larger than the percent in the USA.

4. Venture capital investment in Israel in 2007 was a respectable $1.2- 1.8 billion, (depending on source). Most of the money is going to networks/communications, semiconductors, software, internet including web 2.0, and some to life science,

5. What do the giant foreign companies think? Major tech MNCs came into Israel decades ago -- and have bought-- not 1 Israeli firm -- but rather, they are serial investors, buying more and more Israeli tech firms. These global foreign tech companies have huge investments in Israel.

o IBM kicked-off 2008 with a $300m acquisition of the Israeli storage firm XIV.

o HP is a big eater of Israeli firms: Indigo (2001 for $800m); Scitex (2005 for $230m), Mercury (2006 for $4.5b).

o Intel has 7000 employees in Israel and made several acquisitions.

o Cisco, Applied Materials each has made several acquisitions. And the list goes on.

6. The biggest Israeli firms – the Top 5 – the 5 biggest Israeli firms in sales. All are tech-oriented and heavy exporters. First is Teva – $8b Pharma firm, leader in generics; Second is Amdocs -- 16000 employees, $4b in sales, the largest Israeli IT firm. Third and fourth are Machteshim and Israel Chemicals – both in chemicals and agri-tech. Fifth is IAI - Israel Aircraft Industries.

Having briefly reviewed what’s working well in the Israeli technology sector, then besides Israeli tech being slightly forgotten, is there anything wrong? -- worrisome trends?

The turning point was the year 2000. In and since the year 2000, a trifecta of blows hit the Israeli tech sector: the NASDAQ dot.com bust (there was no foreign country as closely linked the tech bubble as Israel); the Palestinian Intifada that began in late 2000; and since 2000 many American firms began shifting attention in offshoring/ sourcing to India and China.

There are other problems and issues to watch.

The 1st -- and probably most threatening problem -- was summed up in 2005 by Hemi Peres, head of Pitango, largest Israeli venture capital firm, and son of Israeli President Peres, He said that R&D will move offshore-- if Israel doesn’t invest in Education and R&D. Indeed, in late 2007 we saw two low points in Israeli education. A 3- month teachers strike in secondary schools and a 3-month strike of professors at major universities.

The second issue is wages. While Israeli tech has not competed on low wages (Israel, as a middle-income nation, always had higher wages than developing nations like India). But, Israeli wage costs have risen: in 2007, for the first time since the era of the biblical King David, the shekel has gone up 20% against the US dollar.

The third issue is that Israeli tech is offshoring its own work. Since 2000 Israelis themselves began sending work offshore to cheap countries. Israelis source to India, Eastern Europe, now China. By 2005, 4 of Israel’s BIG5 IT firms were offshoring to India: Amdocs, Comverse, Mercury, Ness.

Back to Israel vs India. Recall that I had said that Israel lost its global prominence to India in high-tech.

Let’s do some rough comparisons. The middle class in India is 50 times larger; employment in high-tech plus ITES in India is 40 times greater than Israel (roughly 1.6 million v 60,000). Yet, annual exports of high-tech are very roughly in the same range $30b-50b (depending on assumptions).

Whereas India continues to have advantages due to its size and low wages. Israel’s high-tech advantages remain its creative, innovative, entrepreneur tech culture – a culture of startups for high end innovation.

In fact, many Israelis are more worried about competition with China than India.

And rather than India or China, Israel needs to be compared globally to other small successful island economies: Singapore, Ireland, and Taiwan.

Let me conclude by making an observation about the trajectory of Israel’s tech sector.

First the good news: large amounts of VC in 2007 continue to flow into the same super-successful sectors that were big in the 1990s. Most funds are targeted, as I’ve noted already, to networks/comm, semiconductor, software, internet including web 2.0. This is an indicator of Israel’s profound strengths in these areas.

Now the bad news: This blessing is also cause for some worry-- because it means that in the next IT downturn, which may have just begun, Israel again will not be diversified and will be hit hard.

Saturday, September 1, 2007

FOLLOW-THE-SUN: A call for more research and experimentation.

In late August 2007 I was the opening keynote speaker at ICGSE - International Conference on Global Software Engineering, in Munich, Germany.

The core of my talk examined the goal of FOLLOW-THE-SUN, also called: 24-hour development and Round-the-clock development. The idea is simple: Hand-off work from one site to the next as the world spins (USA to India, for example). This way you reduce the total time of development by 50% if you have two sites, and by 67% if you have three sites. Follow-the-sun is about speed!- Cycle-time reduction, Time-to-market reduction, Duration reduction.

This is where the community of specialists on global software engineering can make an impact – in using the special advantage of time zones to increase speed. After all, we’ve already achieved cost reduction and other goals, as a result of global software development.

Because of the hype, exaggeration, and myths of Follow-the-Sun, I offer Carmel’s rigorous definition: Follow-the-Sun must satisfy all 5 conditions.

  1. At least 2 sites substantially separated by time zones.
  2. High dependency between sites
  3. Project is set up with the objective of reducing duration
  4. Successfully achieving duration reduction.
  5. Successfully achieving duration reduction using objective measures.

More on this topic in future.