September 27, 1999

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Lessons Learned from Y2K

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A powerful insight into the benefits of centralized control for large-scale IT initiatives is revealed in comparing the Y2K programs of the federal government and the state of New York, two enormous projects involving many autonomous units. New York state, under the guidance of Y2K program director Julie Leeper and strong leadership from Gov. George Pataki, was early to identify and focus on the 45 highest-impact systems, regardless of how many agency boundaries were involved.

The U.S. government, on the other hand, has mostly centralized compilations of reports from autonomous and uncoordinated agency projects. The problem with that approach is that it tends to overlook the interdependencies and interconnections of various agencies, among each other and with outside enterprises.

A midyear-1999 comparison of the status of New York's most critical systems and the status of the U.S. government's 43 highest-impact systems showed that 38 of the state's 45 most-critical systems were completed, while only two of the 43 federal systems were, with 27 of them scheduled for completion in December 1999 or at some "unknown" date. That's strong evidence of the benefits of centralized control of certain IT initiatives and assets.

Locating Silver Linings
There are probably as many ways to categorize the silver linings of Y2K as there are enterprises. Having had a chance to look under the hood of more than 400 Y2K projects, I've come to the conclusion that there are basically three interrelated categories of potential Y2K benefits and improvements: processes and practices, knowledge and skills, and attitudes.

Improvements in processes and practices include the kinds of things detailed in the two charts on p. 316, as well as other benefits in the areas of IT-asset management, software development and maintenance, project management and monitoring, and human-resource management.

The second chart (bottom, p. 316) documents some of the benefits in knowledge and skills that also include the benefits derived from having participated in an all-encompassing systems endeavor such as Y2K; the improvements in communications and cooperation skills; the enhanced knowledge of the enterprise and how IT assets support its operations; and how IT connects and supports the customers and suppliers that comprise the supply chain. Best of all, these knowledge enhancements don't just accrue to the company's IT professionals; everyone comes to better understand the critical role that information assets play in the success of the organization.

That chart also indicates improving attitudes about the company's IT people and their skills. The chart at left reveals more of these improvements in knowledge related to Y2K's positive legacy, as well as some improvements in attitudes. These benefits are not just about improved IT professional self-perceptions, but also, assuming things go reasonably well, about the attitudes of others in the enterprise regarding the company's IT people and operations.

To the detriment of many service providers, most of the work of solving Y2K problems was done by internal staff. Although estimates put total IT outsourcing at about 15% to 20% of total IT spending, the estimates for total Y2K work outsourced fall into the 3%-to-5% range. This means that the benefits in terms of knowledge, skills, and attitudes of having done the work accrues to those internal IT staffers who had the opportunity. It's too early to tell, but a successful Y2K experience may become one of the key prerequisites for entry into the next class of CIOs.

Enough ink has been devoted elsewhere to the role of IT professionals as change agents. And it's no different in institutionalizing the positive changes begun by Y2K efforts. In a nutshell, we're talking about the same kinds of things that lead to the success of any systems project:

• Gaining management and user commitment at all levels.

• Encouraging realistic expectations of everyone affected by pointing out practical benefits as well as challenges.

• Assuring that pragmatic project objectives, plans, and metrics are clearly specified through the involvement of all affected groups.

• Practicing ongoing education and training to regularly reinforce the positive changes.

• Managing the change process carefully and diligently, measuring results frequently, and making adjustments as needed.

And now it's Feb. 22, 2001. Last year was an exceptional one for your company, despite the nuisance of ongoing Y2K problems nearly everywhere. You've got positive programs in place aimed at continuous and incremental improvements of all aspects of your IT operation. Quality and simplicity are the underlying themes. Everyone is on board because everyone understands that it makes each person's job more fulfilling and more productive.

Your business is becoming the nimble, flexible, and efficient machine it takes to succeed in the electronic marketplace. You are becoming the kind of IT professional you always wanted to be, and your co-workers are growing, too. A new synergy has emerged among all the people in your business, as well as with suppliers and customers.

Too good to be true? Probably not for those who faced the challenges of Y2K and won. Time, no doubt, will tell.

Professor Leon A. Kappelman is associate director of the Center for Quality and Productivity in the College of Business at the University of North Texas, co-chairman of the Society for Information Management's Year 2000 Working Group, and chief scientist at Solutions-Organizations-Systems Inc. He can be reached at kapp@unt.edu.

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