Example of Technical Debt and Its Cultural Consequences with Ken Knapton
Hot Mess Hotline00:53:3749.1 MB

Example of Technical Debt and Its Cultural Consequences with Ken Knapton

How about a specific example of technical debt and its cultural consequences? Ken Knapton shares a real world example where tech silos and cultural silos reinforce each other. This company had several overlapping solutions that wasted money and created at least $5 million in cash expense โ€” while individuals were losing their jobs!

If youโ€™re struggling to articulate the case for why technical debt is holding your enterprise back, listen to this episode for the real world implications, criteria to evaluate and quantify, how to know you have a problem, and how to leverage your tech debt to the tune of 50%.


About Ken Knapton:

Ken Knapton is an accomplished technology leader with extensive experience in leading IT functions, driving efficiency, automation, and delivering improved business outcomes.

Ken has a proven track record in identifying and solving complex business problems, implementing sustainable solutions, and driving process improvements that transform business operations and bottom-line results.


Read the full blog post at: https://thechangearchitects.com/example-of-technical-debt-and-its-cultural-consequences/

[00:00:10] Hey there my friends, you're listening to the Hot Mess Hotline and this is Stefanie

[00:00:15] Krievins.

[00:00:16] You're in the right place if you're an ambitious leader who is charged with delivering on the

[00:00:20] tech of the future right now.

[00:00:23] In order to do that, you and your team must upskill and tackle old problems with new

[00:00:28] ways of thinking.

[00:00:30] In the past we would have called this change management and leadership development but

[00:00:34] change is now the air that we breathe and your team needs a unified strategy for

[00:00:38] the 21st century.

[00:00:40] That's what we have for you here.

[00:00:42] These executive level conversations are nuanced, insightful and hard-earned lessons from leaders

[00:00:48] just like you that you can put into practice as soon as this episode is over.

[00:00:53] Small tweaks have huge impact.

[00:00:55] Take what's new and useful and leave the rest.

[00:00:59] Today's conversation is with my new friend Ken Napton.

[00:01:02] He is an accomplished technology leader with extensive experience in leading IT functions,

[00:01:07] driving efficiency, automation.

[00:01:10] Most importantly he has created a way to catalog and monetize tech debt inside of our organizations

[00:01:17] and that's really what our conversation is going to revolve around today.

[00:01:22] Not only is he an expert on tech debt, he has secured multiple patents and is recognized

[00:01:27] as a subject matter expert in this area and serves on the Forbes Tech Council.

[00:01:32] He also leads Rocky Mountain CIO and they provide strategic IT direction and advice for

[00:01:38] our small and mid-sized businesses who aren't ready to hire that full-time CIO yet.

[00:01:43] So let's dig into this conversation about tech debt and the many implications and the

[00:01:49] many problems that it causes.

[00:01:50] Let's go.

[00:01:51] Ken, sir, tell us about your hot mess.

[00:01:54] You know I am so glad to be with you today.

[00:01:56] It's an exciting.

[00:01:57] I was looking forward to this conversation.

[00:01:58] So yeah, hot mess.

[00:02:01] Right?

[00:02:02] Hot mess.

[00:02:03] So this was a situation that I stepped into.

[00:02:08] I kind of stepped into this hot mess.

[00:02:10] So I was hired into it.

[00:02:11] You stepped into the staming pile of yuckiness.

[00:02:14] I stepped right into it.

[00:02:16] Yeah, that's correct.

[00:02:19] So it kind of starts from the beginning.

[00:02:22] So I was hired into an organization where they were two years and $10 million into a sales

[00:02:31] force implementation.

[00:02:33] And they had nothing to show for it, but nothing in production, nothing functional.

[00:02:39] So there's your hot mess.

[00:02:41] Right here.

[00:02:42] Woo, that's mean.

[00:02:43] Yeah, it was a mess.

[00:02:45] I mean it was...

[00:02:47] And by the way, we'll get into this as we go along.

[00:02:50] But I want to say right up front.

[00:02:52] This had nothing to do with sales force.

[00:02:54] This could have been name your product.

[00:02:57] This could have been any other solution that it did not have to do with the sales force

[00:03:02] solution itself.

[00:03:04] It really does.

[00:03:06] That's a great idea.

[00:03:09] That's right.

[00:03:11] So I was hired into this situation and of course, the first thing I had to do was

[00:03:15] figure out how did we get here?

[00:03:18] How did we end up in this terrible situation?

[00:03:22] And I'll tell you, it didn't take very long to figure that out.

[00:03:28] It was pretty clear.

[00:03:29] Really?

[00:03:30] Let me guess.

[00:03:31] It had to do something with the culture maybe?

[00:03:33] Maybe.

[00:03:34] You know?

[00:03:35] Spot on.

[00:03:36] Yeah.

[00:03:37] I don't know.

[00:03:38] Yeah.

[00:03:39] So there were two kind of common mistakes that been made.

[00:03:45] And I've seen these before by the way.

[00:03:47] I mean, we could talk about other hot messes from prior lives.

[00:03:52] But we'd be talking about almost the same.

[00:03:54] We have almost the same conversation because I've seen this over and over and over.

[00:04:00] So two things I found right off the bat.

[00:04:05] One, they were not looking at this solution as an enterprise platform solution.

[00:04:16] Now when you invest in something like Salesforce, and again it could be any other solution.

[00:04:20] But you know, in this case that's what it was.

[00:04:22] You're looking to provide a platform for your organization.

[00:04:27] You have all kinds of functionality capability.

[00:04:29] Lots of stuff come along with the licenses that you're purchasing.

[00:04:34] And this organization was looking at this as well, this is servicing solutions.

[00:04:43] Servicing is implementing this.

[00:04:45] And so sales, marketing, finance, or everybody else was like, oh, I hope they do great over

[00:04:52] there.

[00:04:53] I hope they do just fine with their solution.

[00:04:57] And so they weren't looking at this holistically as a platform.

[00:05:01] And so one of the problems that caused, and this was a little bit later on in the kind

[00:05:06] of investigation as I figured out what was happening.

[00:05:10] One of the problems that caused was they were paying duplicative license fees.

[00:05:17] They had duplicative technology.

[00:05:19] The platform provided this capability, but they were paying for another solution outside

[00:05:27] of that platform.

[00:05:29] And they were continuing to pay for that.

[00:05:30] So now they had solutions that they were not using, but paying for.

[00:05:36] And I mean, that was to the tune of $5 million of annual license fees.

[00:05:42] $5 million of duplicative service.

[00:05:46] Yep.

[00:05:47] And this, that was only, we limited when we quantified that number.

[00:05:52] We limited our investigation to only the capabilities that they actually had and that

[00:05:59] they were already paying for.

[00:06:01] So obviously in Salesforce, there's lots of other things you can buy, you can

[00:06:05] add on, you can check.

[00:06:07] And with other solutions as well.

[00:06:09] So it wasn't, hey, we could have this.

[00:06:12] It was, we're already paying for this and we're not using it.

[00:06:17] Or we're paying for it from three or four.

[00:06:20] In one case, there were four different solutions for the same technology across

[00:06:26] the organization where sales was using one.

[00:06:30] So this was on a revenue perspective, there were about 500 million,

[00:06:36] four or 500 million somewhere in there.

[00:06:38] Okay.

[00:06:38] Okay.

[00:06:39] So headcount we were, when I started, we were a little over 4,000 employees.

[00:06:45] Okay.

[00:06:45] I had about 200 in my organization, 220.

[00:06:50] Okay.

[00:06:51] And the reason I ask is there are some organizations that are super complex

[00:06:56] where duplication is necessary sometimes.

[00:07:00] I mean, I think the cases are more rare than they are, they make sense to.

[00:07:05] But at that size, you can't justify that.

[00:07:10] We cannot.

[00:07:10] No, for sure.

[00:07:11] For sure.

[00:07:11] You're right.

[00:07:12] And some large organizations, yes, you may, there may be valid reasons for this

[00:07:16] organization to have their own solution, this organization to have their own.

[00:07:19] Sure.

[00:07:19] In this organization, that was not the case.

[00:07:22] And there were some significant revenue pressures as well.

[00:07:30] There were some significant headwinds here.

[00:07:32] So cost containment was super important.

[00:07:37] I mean, we were during the course of my time there, we had several layoffs,

[00:07:42] probably five or six layoffs.

[00:07:45] And so you look at, well, do we layoff employees or do we consolidate our duplicative

[00:07:53] licenses?

[00:07:54] Yeah.

[00:07:55] And in this case, people were losing their job.

[00:07:58] And so, yeah, cost containment was absolutely critical.

[00:08:02] Oh my gosh.

[00:08:02] And can you share what those overlapping services were?

[00:08:06] And if you can't, that's okay.

[00:08:07] But I'm thinking just to put meat on the bones here so people understand.

[00:08:11] Yeah.

[00:08:11] So there were several.

[00:08:13] I'll give you just one example.

[00:08:14] There were several places again.

[00:08:15] We did a full investigation.

[00:08:16] We looked at all the different solutions that they were using.

[00:08:19] The one case that was the most obvious was chat solution.

[00:08:24] So we had in Salesforce, obviously there is a chat capability.

[00:08:28] Yes.

[00:08:29] And it comes with the tool.

[00:08:30] We'd already bought it.

[00:08:31] It was there.

[00:08:32] Nothing was in place for chat or Salesforce.

[00:08:36] They had a solution that they had purchased solely for the servicing

[00:08:42] department a couple of years back.

[00:08:45] And that was, they have several hundred thousand dollars they were

[00:08:48] paying just for chat for people calling in to service their accounts

[00:08:53] to be able to chat with them.

[00:08:54] Stales had their own solution.

[00:08:56] So they weren't even using the same one that servicing was using.

[00:08:59] They went out and chose a different one because they felt like, well,

[00:09:05] that doesn't be our needs now.

[00:09:09] Yeah, that was my reaction.

[00:09:11] Right?

[00:09:12] Sorry.

[00:09:13] It's a chat solution.

[00:09:14] Right?

[00:09:15] I mean, come on.

[00:09:15] I mean, I don't want to downplay it too much.

[00:09:17] Right?

[00:09:17] But yes.

[00:09:18] I mean, come on.

[00:09:19] You can make it work.

[00:09:21] And then they had a third chat solution.

[00:09:25] So sales had their own servicing had their own.

[00:09:27] Salesforce had one that was not being used at all.

[00:09:30] And then there was a fourth solution that had come from a prior acquisition

[00:09:35] that they just never integrated.

[00:09:39] And that was for servicing of their customers from this other acquisition.

[00:09:46] And so four solutions that we are actively paying for, actively using,

[00:09:50] managing, maintaining, monitoring, complete waste of money.

[00:09:54] And so you take that and you can kind of, you know,

[00:09:56] expand that out to other types of solutions.

[00:09:59] Other logic.

[00:10:00] Yes.

[00:10:01] Yeah.

[00:10:01] And so again, we kind of looked at the whole picture.

[00:10:04] $5 million worth of annual license fees.

[00:10:09] And that's just the cold hard cash.

[00:10:11] Like I'm envisioning because I just had this situation with a company

[00:10:15] that I ordered something very expensive online from, sorry, not online,

[00:10:20] through the store or it's all serviced on the back end.

[00:10:22] All those disconnected services, all those platforms that as a customer

[00:10:27] you're interacting with different functionality in your life cycle

[00:10:31] with that company.

[00:10:32] That means data doesn't get transferred.

[00:10:34] That means you can't service the customer seamlessly

[00:10:37] because you don't have consistent information.

[00:10:39] Like the opportunity costs behind that and the frustration of a customer.

[00:10:45] Oh, that's what I say.

[00:10:47] I'm going to lose my biscuits.

[00:10:48] Like that would make me lose my biscuits,

[00:10:50] interact with the company that does that.

[00:10:52] And they're still around today.

[00:10:53] You know, I'm sorry.

[00:10:54] Companies that think that way by way of technology

[00:10:57] not having a seamless customer experience, they still exist.

[00:11:00] And I just spent $2,100 with them.

[00:11:03] And it's very frustrating.

[00:11:07] Yeah, like I said, this is a common problem.

[00:11:09] It's amazing to me how common this is.

[00:11:11] But people get, you know, it's a to use a kind of a common term, right?

[00:11:18] It's the silos that exist inside the organization

[00:11:22] where the marketing person says, well, this is what our team needs.

[00:11:27] This is what we like.

[00:11:28] We have expertise in this or we've used it before or whatever.

[00:11:33] And you have servicing running their organization.

[00:11:35] This is what we want.

[00:11:36] And nobody's really looking across the organization

[00:11:38] to say, well, hey, yes, this may not be ideal for you,

[00:11:44] but it will work.

[00:11:46] Right?

[00:11:46] It's good enough.

[00:11:47] It's going to meet your needs.

[00:11:50] And again, you have to quantify that in the organization

[00:11:53] to find out how meaningful is this to our bottom line.

[00:11:58] Yes.

[00:11:58] And it's interesting that you had mentioned the data aspect of it

[00:12:02] because you know what?

[00:12:04] The number one thing that each of these leaders,

[00:12:07] each of my peers, number one thing they were talking to me

[00:12:10] about on a regular basis was, hey,

[00:12:14] we don't have the right data in our chat solution.

[00:12:18] Or it's not, we're not getting the right data.

[00:12:20] We don't have clean data.

[00:12:21] I'm like, of course you don't.

[00:12:23] Of course you don't.

[00:12:24] The solution is not integrated.

[00:12:28] You have this thing and we're trying to export data

[00:12:31] from this other solution over here

[00:12:33] so that you can have what you need when,

[00:12:36] if we just use that from Salesforce.

[00:12:38] If we were using Salesforce as a platform,

[00:12:41] like it was intended to be, that's

[00:12:44] the purpose of a platform, right?

[00:12:46] And the keyword is enterprise for the enterprise.

[00:12:50] I'm being a little salty today, a little sassy here,

[00:12:53] but one of the things that you talked about was,

[00:12:56] sales bought their own chat platform.

[00:12:59] And I'm sure sales bought their own fill in the blank

[00:13:01] product, right?

[00:13:02] Or service on my apologies.

[00:13:04] Then marketing made the same decisions

[00:13:05] and bought their own fill in the blank.

[00:13:07] And then sales, sorry, sales service, ops,

[00:13:11] this other company, yeah, all of them, right?

[00:13:14] All of these leaders taking time out of their busy schedules

[00:13:17] to make their own decisions.

[00:13:19] And we've talked about the word tech.

[00:13:22] One of the things that our conversation inspired me

[00:13:24] to think about as we were getting ready today

[00:13:26] was tech silos and cultural silos,

[00:13:30] they feed off of each other, right?

[00:13:32] And so what did you learn about

[00:13:37] how, like what that relationship looked like

[00:13:39] in this company?

[00:13:41] So it's fascinating.

[00:13:42] And by the way, that leads right into tech debt.

[00:13:47] So I quantify all of this that we're talking about as tech debt.

[00:13:51] If you have four different chat solutions,

[00:13:55] one of them should be your long-term vision,

[00:13:58] your long-term strategic plan from the IT perspective.

[00:14:01] This is the one we're gonna go with.

[00:14:03] The rest of them are all tech debt.

[00:14:05] Every dollar that you spend managing, maintaining,

[00:14:08] operating that is wasted money.

[00:14:12] And that's tech debt, right?

[00:14:15] And so yeah, so how did we get there as an organization?

[00:14:19] Well, part of the challenge here was that the CEO,

[00:14:25] I guess, you know, the buck always stops at the CEO, right?

[00:14:27] But in this case, he wanted to keep people accountable.

[00:14:31] But in order to do that, he wanted to give them

[00:14:33] the autonomy that they needed to run their organization.

[00:14:37] And so he would look at his sales leader and say,

[00:14:39] okay, what do you need?

[00:14:42] Go, I'm gonna give it to you, go do what you need.

[00:14:45] He'd look at his market leader,

[00:14:46] look at you run this organization,

[00:14:48] gonna give you the autonomy to go do what you need.

[00:14:51] And that's a really good attribute of a leader.

[00:14:57] Absolutely, absolutely.

[00:14:59] You're giving the autonomy and you're holding them

[00:15:01] accountable and that's great.

[00:15:04] Where it caused problems was when that overlapped

[00:15:09] into the technology staff, right?

[00:15:13] So rather than saying, hey, you have the autonomy

[00:15:16] to do what you need, go work with the CIO

[00:15:20] to make sure that you're making technological decisions

[00:15:23] at an enterprise perspective that are also

[00:15:25] in the best of just of the company.

[00:15:27] Yes.

[00:15:28] You know, that's the step that didn't happen.

[00:15:31] And so now each individual department head

[00:15:35] was truly leading their own silo

[00:15:39] and building their own tech stack.

[00:15:42] And then coming in complaining to me that,

[00:15:44] hey, we don't have the right data.

[00:15:46] Yeah, they won't tell me what I need.

[00:15:48] Exactly, right.

[00:15:49] So this other department, I need the data that they have.

[00:15:53] Get it to me somehow.

[00:15:57] And so that was the first kind of big problem

[00:16:00] that we ran into with this particular implementation.

[00:16:03] Oh my gosh.

[00:16:04] And I see this play out day in and day out

[00:16:09] because what silos also make possible is a blame culture.

[00:16:14] Well, this other silo won't give me what I want

[00:16:17] so I can't do what I promised.

[00:16:20] And it just creates, I mean, ickiness, politics.

[00:16:25] I mean, all not great things in a culture.

[00:16:28] And then you've got tech decisions beating into that.

[00:16:31] And I'm also curious, like how far reaching

[00:16:35] did that kind of decision making style go?

[00:16:38] Because I'm thinking if marketing says,

[00:16:41] I get to buy the tech that I need to do effective marketing

[00:16:44] without thinking about the other functions of the company,

[00:16:47] does sales get to say,

[00:16:50] I have to do the marketing that I need to do

[00:16:53] to fuel sales in the way that I want to do it?

[00:16:56] Like where does that logic stop?

[00:16:59] Yeah, no, that's a great point.

[00:17:01] Because they are all dependent on each other.

[00:17:04] It is one company.

[00:17:06] One, one.

[00:17:07] Yeah, yeah, it's one company.

[00:17:08] So yeah, it's fascinating.

[00:17:10] And I'll tell you, it reminds me,

[00:17:12] one of the things, I've worked in a lot of industries.

[00:17:16] I've worked in a lot of companies.

[00:17:17] And one of the things that I do every time I start a job,

[00:17:22] I go to each of my peers and I sit down

[00:17:24] and I say, why do you need a new CIO?

[00:17:29] Like what do you need from this role?

[00:17:31] What do you need from the IT organization?

[00:17:33] What's going on?

[00:17:34] And in most cases, I won't say that I'm always walking

[00:17:38] into a hot mess, but often I am.

[00:17:41] And it might be lukewarm.

[00:17:43] It might be any posty.

[00:17:44] Yeah, hopefully it's not.

[00:17:47] But there's always a reason

[00:17:49] that they've hired this role.

[00:17:51] Right, there's something that has to be solved.

[00:17:52] There's some problem.

[00:17:54] And so inevitably, each of my peers will say to me,

[00:17:58] well, here are the problems that we're having.

[00:18:00] Here's the things that we need to change.

[00:18:03] And everybody wants change.

[00:18:05] The thing that they're not recognizing is that all of them,

[00:18:08] all of these peers that I'm interviewing are saying,

[00:18:12] we need change.

[00:18:14] But when they say that what they need is,

[00:18:16] I need you to help me make everybody else change.

[00:18:18] That's right.

[00:18:19] That's right.

[00:18:21] That's right.

[00:18:23] Right, and they're all saying that.

[00:18:25] They're all coming to me saying, hey, help me do that.

[00:18:27] And so when we start talking about these silos

[00:18:29] and the technology, they actually,

[00:18:32] and I remember some of these conversations with my peers,

[00:18:35] they actually would be very conscious of the fact that,

[00:18:38] hey, we're using a different chat solution than they are.

[00:18:41] And their solution to that was just help them use buying.

[00:18:44] That's right.

[00:18:45] That's right.

[00:18:46] That's right.

[00:18:47] Yeah.

[00:18:48] That was their solution.

[00:18:49] And it was all of them were saying,

[00:18:51] you just help me get them on my platform.

[00:18:53] And then we're, and we can be partners, right?

[00:18:56] Let's partner and let's go do that.

[00:18:58] And then when I didn't do that,

[00:19:00] when I said, hey, we've invested in a platform

[00:19:03] and that platform comes with certain things.

[00:19:06] And so we all need to move to that.

[00:19:09] Then it was, hey, Ken, you're not partnering

[00:19:12] with your peers, right?

[00:19:15] Because partnering with them would mean

[00:19:17] each one of them gets what they want.

[00:19:21] Which again is another sign of a siloed organization

[00:19:24] that doesn't think competively

[00:19:26] because there's us versus them.

[00:19:27] There is no us versus them in a company.

[00:19:31] You need a common enemy outside of the company.

[00:19:33] And it could be a competitor,

[00:19:35] it could be COVID when that was, you know, whatever it is,

[00:19:38] but your colleagues cannot be your enemy

[00:19:41] in order to be successful.

[00:19:43] Yeah, exactly.

[00:19:44] And that was rampant.

[00:19:46] It really was.

[00:19:46] There was a lot of this kind of finger pointing

[00:19:49] between departments and not just IT and everybody else.

[00:19:52] It was, there were some really deep kind of silos

[00:19:57] here in this organization.

[00:20:00] So it was a challenge.

[00:20:01] Yeah, oh my gosh.

[00:20:02] And completely normal, right?

[00:20:04] Like I mean, this is everyday organizational life.

[00:20:07] It doesn't have to be this way,

[00:20:08] but unfortunately that's what a lot of evolved into.

[00:20:11] Well, things your story reminded me of.

[00:20:13] I was with a fellow learning and development firm

[00:20:17] about a year and a half ago in Cincinnati

[00:20:19] visiting the owner.

[00:20:19] We were just talking about collaboration.

[00:20:21] And in his bathroom, in the office bathroom,

[00:20:24] there was a sign that everybody loves change,

[00:20:27] but no one will change the toilet paper.

[00:20:29] And, you know, which is riff off of more,

[00:20:32] more prophetic, is that the right word?

[00:20:34] Prophetic sayings.

[00:20:36] But I was like, that's so true.

[00:20:38] Everybody wants change,

[00:20:39] but no one wants to change the toilet paper.

[00:20:42] Yeah, that's spot on.

[00:20:44] Spot on.

[00:20:45] Everybody wants change,

[00:20:45] but they all want someone else to change.

[00:20:47] That's right.

[00:20:48] That's what they want.

[00:20:49] They want someone else to change

[00:20:50] to meet what they're expecting.

[00:20:51] Yes.

[00:20:52] Well, we've got a lot of tech leaders listening into this.

[00:20:54] Talk to me about what you learned

[00:20:57] about tech debt in this situation,

[00:20:59] how you defined it.

[00:21:01] You know, walk us through that process

[00:21:03] where you were able to say like, whoa y'all,

[00:21:07] like we got some big numbers adding up

[00:21:10] and this is no longer working.

[00:21:12] Yeah, so like I said,

[00:21:13] one of the first things you have to do

[00:21:14] is quantify that.

[00:21:16] Yeah.

[00:21:16] Right?

[00:21:17] And so one of the things we did,

[00:21:18] I've already talked about,

[00:21:19] we looked across the organization at,

[00:21:22] what is duplicatives?

[00:21:24] What do we have that we're paying for in multiple places?

[00:21:27] Right, so we started to articulate that.

[00:21:29] And no one had calculated that before

[00:21:32] because no one really,

[00:21:36] when they try to estimate that in their head,

[00:21:39] they always underestimate.

[00:21:41] Well, this chat solution is only 50,000.

[00:21:43] That's it.

[00:21:44] No, we've got all these add-ons,

[00:21:46] we've got all these other things,

[00:21:47] all this other stuff that we,

[00:21:48] you know, it's not that.

[00:21:50] And they think back to when they first bought it,

[00:21:51] not what they're paying for now,

[00:21:53] right, with all of the changes that they've made

[00:21:55] and everything.

[00:21:56] So, and all the growth that's occurred, right?

[00:21:58] Additional licenses or whatever.

[00:22:00] So the first thing you have to do is quantify your spend.

[00:22:06] But it was fascinating because I actually found a quote

[00:22:10] from Gartner at the time about TechDent

[00:22:12] because I was starting to figure out,

[00:22:13] well, how am I going to articulate this

[00:22:16] not only to my peers,

[00:22:17] but to the rest of the executive team,

[00:22:19] to the board, right?

[00:22:21] This is a big problem here.

[00:22:22] I have to be able to share this.

[00:22:24] And so I found a quote from Gartner that said

[00:22:27] that companies who don't actively measure

[00:22:30] and manage their TechDent will,

[00:22:34] I'm sorry, companies who do actively manage

[00:22:37] and measure their TechDent will achieve 50%

[00:22:40] greater efficiency.

[00:22:42] 50%.

[00:22:43] 50?

[00:22:44] Yeah.

[00:22:45] I want 50%.

[00:22:47] I want that.

[00:22:48] I want that.

[00:22:50] Let's get that.

[00:22:51] And so I looked into all,

[00:22:53] how do we measure and manage that?

[00:22:56] And every place that I found was measuring

[00:23:00] custom development TechDent.

[00:23:02] So the TechDent of software developers

[00:23:05] as they're developing your custom solution,

[00:23:08] nobody's really looking at it

[00:23:09] from an enterprise perspective.

[00:23:10] And so I actually went out and created my own algorithm

[00:23:14] and I created a solution that measures

[00:23:19] lots of different aspects.

[00:23:21] How many people do we have

[00:23:23] managing this particular technology?

[00:23:26] How much time do they spend managing it?

[00:23:30] How far behind is it from a technological perspective,

[00:23:34] patching perspective, right?

[00:23:35] Versioning, right?

[00:23:36] How far back are we?

[00:23:38] And we had some solutions in this company

[00:23:40] that were years behind multiple major versions behind.

[00:23:46] And so you have to quantify all of that.

[00:23:48] Yes.

[00:23:49] And so I went through my whole organization,

[00:23:51] I went to my guys that were hands on keyboards

[00:23:54] and I said, help me how much time you're spending

[00:23:58] managing this application?

[00:24:00] And the first reaction was,

[00:24:01] oh, that's just part of the job.

[00:24:02] It's just what I do.

[00:24:04] No, no, I need to understand

[00:24:06] how much time you're putting on this particular thing.

[00:24:09] And they were shocked

[00:24:10] because no one had ever asked them that before.

[00:24:13] So we gathered all the information

[00:24:15] and again I kind of created this algorithm

[00:24:18] that allowed me to take all of this data.

[00:24:21] And oh, by the way, the other key part of this is

[00:24:25] you have to have your IT strategy.

[00:24:27] So you have to know if this thing-

[00:24:30] What?

[00:24:30] You have to have an IT strategy then?

[00:24:32] Right, yeah, I know.

[00:24:33] I'm just kidding.

[00:24:34] I'm out on that field here, I know.

[00:24:35] This was radical, radical stuff.

[00:24:39] You're wild.

[00:24:40] I got it.

[00:24:41] Because you have to,

[00:24:42] one of the components of tech debt

[00:24:45] is this particular thing part of your long-term plan.

[00:24:49] Yes.

[00:24:50] Because if it's not,

[00:24:51] then you have to have a plan to get it out of your

[00:24:52] organization.

[00:24:53] Yes.

[00:24:53] Like again, going back to the chat solutions.

[00:24:56] I know that again, there's plenty of other solutions

[00:24:57] but that's the one that we've kind of zeroed in on

[00:24:59] for this conversation.

[00:25:01] If we have four chat solutions,

[00:25:03] which one is your long-term strategic plan?

[00:25:07] Which one are you gonna go with?

[00:25:09] So you have to make that decision.

[00:25:11] And then the others all become tech debt.

[00:25:12] And then because they're tech debt,

[00:25:15] you now have to articulate,

[00:25:16] well, when are we going to get them out of our

[00:25:18] environment?

[00:25:19] When are we going to make this change?

[00:25:22] And so you did that with all of your technologies.

[00:25:25] And so we did that.

[00:25:26] And we had our long-term strategic plan.

[00:25:29] We knew, this is what our tech stack

[00:25:32] is going to look like in the future.

[00:25:34] This is what it looks like today.

[00:25:35] All of these things that are not part of that

[00:25:38] contribute to our tech debt.

[00:25:40] And then I was able to take that

[00:25:42] and boil it down to a single number

[00:25:46] that I went to the board and I said,

[00:25:48] we are X percent leveraged from a tech debt perspective.

[00:25:54] And that really kind of solidified

[00:25:57] this whole conversation.

[00:25:58] Now we had something specific we could talk about.

[00:26:02] And it created a lot of angst because

[00:26:06] a lot of my peers saw their technology

[00:26:09] on this list of we have to get this out of our environment.

[00:26:12] Oh yes.

[00:26:13] Right?

[00:26:14] But it's not part of the plan.

[00:26:17] So let's start planning for, when are we going to do that?

[00:26:20] Yes.

[00:26:21] Well and what those, from a change management perspective,

[00:26:24] what those leaders heard, it's not,

[00:26:27] oh, the tech is not in the plan in the future.

[00:26:29] It's the decision that I made was wrong

[00:26:32] and my ego's at stake.

[00:26:34] And I'm gonna have to give up control

[00:26:37] and autonomy of these decisions.

[00:26:39] And I wanna have autonomy.

[00:26:41] I wanna have control over this for my function.

[00:26:45] And so that, that tussle between the ego

[00:26:49] and maybe some shame depending on the person

[00:26:52] and the loss of control,

[00:26:55] that is recipes for, that is a recipe

[00:26:58] for emotional backlash, staying stuck in the change curve,

[00:27:02] being unwilling to partner with all of their colleagues.

[00:27:07] Let it all get down into the rest of the organization.

[00:27:10] Yeah, that's extremely insightful.

[00:27:14] That's exactly the reaction.

[00:27:18] So can tell us, what were some of those other nuances

[00:27:21] that came along with what you were learning about

[00:27:24] as it relates to the tech debt?

[00:27:26] Yeah, so I said at the beginning

[00:27:27] that there were really two major problems

[00:27:30] with the way they were implementing this.

[00:27:31] So we've talked about the one,

[00:27:33] the second one was really the fact

[00:27:34] that they were approaching this

[00:27:36] from a big bang perspective.

[00:27:38] And that is a recipe for failure

[00:27:42] on any kind of enterprise wide solution.

[00:27:46] And this one again, it's kind of obvious

[00:27:47] but the problem that they had was

[00:27:50] they were building a lot of stuff in Salesforce.

[00:27:53] They had a lot of stuff that they'd actually delivered

[00:27:56] but not into production.

[00:27:57] They delivered it into their dev environment.

[00:28:00] And again, going back to this whole concept

[00:28:02] of change management, every time they would go

[00:28:05] to the leader of the business

[00:28:08] that they're building this for

[00:28:10] and say, hey, look what we've built in Salesforce.

[00:28:12] Their answer would be,

[00:28:14] oh, but it's not as good as what I'm already using.

[00:28:17] And it doesn't do this or this or this.

[00:28:18] So go build that and then come back and talk.

[00:28:22] So they'd build some more

[00:28:23] and then they come back and talk.

[00:28:24] Well, by that time,

[00:28:26] they'd already implemented more stuff

[00:28:29] in the solution they already had in production.

[00:28:31] And so they were never gonna catch up

[00:28:33] and it was never going to be a feature for feature comparison.

[00:28:39] And so they never got anything into production.

[00:28:43] Yes.

[00:28:43] And again, that leads back to this whole data problem

[00:28:46] and this whole silo problem

[00:28:48] and the whole change management problem.

[00:28:49] It's all intertwined.

[00:28:50] Oh, for sure.

[00:28:52] The two things that I hear in that story,

[00:28:54] one is the big bang approach.

[00:28:56] The old school way of deploying things

[00:28:58] was it had to be perfect before you deployed it.

[00:29:01] And that is no longer necessary with software

[00:29:04] and it's really not helpful

[00:29:07] to make the problem much more expensive.

[00:29:09] And when you're trying to take an enterprise level system

[00:29:13] and customize it to match the capabilities

[00:29:16] of very niche services like a Calendly,

[00:29:19] like a Slack, like a DocuSign,

[00:29:24] all those folks have gone extremely deep

[00:29:26] in the capability and one little area

[00:29:30] versus being great enough or good enough

[00:29:33] in key areas across the enterprise.

[00:29:36] You will never be able to keep up with that.

[00:29:39] You're just making your problem even more expensive

[00:29:42] by trying to customize and code Salesforce

[00:29:45] to match Calendly, for example,

[00:29:48] that's a lame example in the IT world,

[00:29:49] but you all know what I mean.

[00:29:50] Like at some point it has to be good enough

[00:29:54] because it's functional and you have cohesive data.

[00:29:58] Yeah, you're spot on.

[00:29:59] And again, this goes right back

[00:30:01] to this whole conversation we've been having

[00:30:03] about these silos and these individuals

[00:30:06] that this is what we use, this is what we have,

[00:30:08] this is what we're used to.

[00:30:09] And the irony here is that

[00:30:13] as they go out and choose their own solution,

[00:30:16] they are perfectly willing to say,

[00:30:19] well, we're gonna implement this slowly.

[00:30:20] We're gonna do this piece first and make sure it works.

[00:30:22] Then we're gonna do this piece, make sure it works

[00:30:24] and we're gonna do this and they build it up over time,

[00:30:26] right with the solution they were implementing.

[00:30:28] But when it came to, hey,

[00:30:30] we're ready to put Salesforce into production,

[00:30:32] it was, oh no, it doesn't do everything yet.

[00:30:36] So with their own solutions,

[00:30:37] they're perfectly willing to take a little bit of,

[00:30:41] you know, give and take and we have to try it out

[00:30:43] and we're gonna tweak as we go.

[00:30:45] Yes.

[00:30:46] But with the enterprise solution,

[00:30:47] they're not ready to take it until it will do everything.

[00:30:50] And it has to be feature for feature,

[00:30:52] which to your point, it's never going to be.

[00:30:56] Yeah.

[00:30:57] Right?

[00:30:57] It's just not.

[00:30:58] And I remember having a conversation

[00:30:59] with one of my peers about that and I said,

[00:31:01] look, when you have a suite versus a best in breed,

[00:31:06] you are never, it's always going to be more expensive

[00:31:10] to do best in breed.

[00:31:11] It's always, you're gonna buy multiple solutions.

[00:31:15] In this suite, you're gonna have a little less functionality,

[00:31:18] maybe it's maybe gonna be a little more clunky,

[00:31:22] but it's going to be integrated.

[00:31:23] The data is gonna be there.

[00:31:25] There are benefits that come with that

[00:31:26] and it's always going to be cheaper.

[00:31:30] Yes.

[00:31:31] To do the enterprise solution than the best in breed.

[00:31:34] And he was shocked.

[00:31:35] He's like, oh, I don't know that that's true.

[00:31:37] Well, okay then.

[00:31:39] No.

[00:31:40] How many staff do you have devoted

[00:31:42] to transferring data that could be automated?

[00:31:45] Yes.

[00:31:46] Oh my gosh.

[00:31:47] I mean, we struggle with that.

[00:31:48] We're a small business.

[00:31:50] We're a micro business in comparison

[00:31:52] to a lot that you've worked in.

[00:31:54] You know, we are light years away

[00:31:56] from ever needing a CIO.

[00:31:58] But we, I mean, we have the same problems

[00:32:00] and during the pandemic,

[00:32:02] so many different platforms exploded their capabilities

[00:32:06] and kind of started fraying the edges

[00:32:08] of what their best in breed is

[00:32:11] as a way to build an ecosystem for that platform.

[00:32:14] And I know that's kind of like the latest tech strategy

[00:32:16] is to build your ecosystem around your platform

[00:32:19] and make everyone else fit into it.

[00:32:22] And last year we tried doing that

[00:32:25] and I invested thousands of dollars

[00:32:26] into customized solutions

[00:32:28] because one thing was going to be our hub

[00:32:30] that at the end of the day couldn't be a hub.

[00:32:33] And so we're switching to an enterprise solution

[00:32:36] made for businesses our size.

[00:32:38] And my staff is saying, oh, well,

[00:32:40] we can pay to customize this

[00:32:42] and pay to customize this.

[00:32:43] And I'm like, no, we will live with the limitations

[00:32:45] of this system because it's not necessary.

[00:32:48] At the end of the day, it's not necessary

[00:32:50] for where we're at right now,

[00:32:52] but they don't see that.

[00:32:52] They see, oh, but I want this capability

[00:32:54] and I want this capability

[00:32:55] and I'm like, nice, okay, we're not gonna do that.

[00:32:58] So it happens at most of all sizes

[00:33:01] and it's so easy to go down the rabbit hole

[00:33:03] before you kind of pull yourself up for air

[00:33:05] and be like, how much should I spend on that?

[00:33:07] We're still not done.

[00:33:09] Yeah, no, that's right.

[00:33:11] And kudos to you for recognizing that

[00:33:14] because you're right, this is just a problem of scale.

[00:33:17] It is.

[00:33:18] This is the problem at every company.

[00:33:21] Everyone faces the same challenge.

[00:33:23] It's only a question of scale.

[00:33:24] Yes, agree completely.

[00:33:26] Let's take a quick commercial break

[00:33:28] and we're gonna talk about why is Ken more awesome

[00:33:32] as a leader?

[00:33:32] What has he been able to do since being able

[00:33:36] to create this equation for tech debt,

[00:33:39] but not only that,

[00:33:41] seeing and learning what he knows now

[00:33:43] based on what he went through then.

[00:33:45] All right, well we take a quick break

[00:33:47] from this amazing conversation today.

[00:33:49] I wanna share with you a new tool that I have for you.

[00:33:53] I think that there's a myth in our workplaces.

[00:33:56] Let me say this, I know there's a myth

[00:33:58] in our workplaces that meetings have to suck

[00:34:00] and I don't believe that whatsoever.

[00:34:02] By all accounts, our time and meetings have doubled

[00:34:05] if not more since the start of the pandemic

[00:34:08] and this time with your colleagues

[00:34:11] should not be a waste of time.

[00:34:12] It should be the most valuable.

[00:34:13] So if you're looking for more resources

[00:34:15] to lead meetings that are productive, powerful, impactful

[00:34:19] and have everyone participating,

[00:34:21] get over to my website at StephanieCravins.com

[00:34:25] forward slash lead kick ass meetings

[00:34:27] and get some new tools so that

[00:34:29] when you leave a meeting with your colleagues,

[00:34:32] you're not left going,

[00:34:33] what the actual F was that?

[00:34:36] You're going, yes we're gonna take on the world together.

[00:34:39] Let's get this done

[00:34:40] because it was an unbelievably powerful meeting.

[00:34:43] Those tools are out there for you my friends

[00:34:45] and they're on my website today,

[00:34:46] StephanieCravins.com forward slash lead kick ass meetings.

[00:34:50] Now let's get back into that conversation.

[00:34:52] So Ken it's been many moons

[00:34:55] since you've been involved in that company

[00:34:57] and evolved your tech debt strategy.

[00:35:01] That's a little harder to say than I realized.

[00:35:04] Strategy, yeah.

[00:35:08] What have you taken with you since that experience?

[00:35:10] Yeah, I think this whole concept

[00:35:13] of being able to actually quantify your tech debt.

[00:35:18] I think most companies understand financial debt

[00:35:23] and they understand that financial debt

[00:35:26] can be both positive and negative.

[00:35:28] Too much financial debt will be a huge burden

[00:35:32] to your company.

[00:35:33] However, you can strategically take on some financial debt

[00:35:38] in order to build your company.

[00:35:40] Yes.

[00:35:41] And so this whole kind of hot mess that I went through,

[00:35:46] really it's kind of helped to solidify this concept

[00:35:49] that tech debt is very, very similar to financial debt

[00:35:54] in the concepts but people don't still

[00:35:58] talk about it that way.

[00:35:59] Usually when executives are talking about tech debt

[00:36:02] it's always a negative thing.

[00:36:04] It's always bad, all tech debt is bad

[00:36:07] and that's not necessarily true.

[00:36:10] There are times when you will strategically

[00:36:13] make a decision to say, you know what?

[00:36:15] This is our long-term plan but in order to get there

[00:36:19] we have to have two chat solutions for a period of time.

[00:36:24] Right, for whatever reason.

[00:36:25] Right.

[00:36:26] And the problem in the past has been

[00:36:30] no one has quantified that, what's the actual cost?

[00:36:35] And no one has ever gone back

[00:36:37] and said we're gonna pay down our tech debt.

[00:36:40] But once those decisions are made

[00:36:41] you just kind of keep moving forward

[00:36:43] and it just grows and grows and grows.

[00:36:46] So what I've learned from this is

[00:36:48] once we can quantify that tech debt

[00:36:51] then we can start having conversations

[00:36:53] with the executive team, with the board

[00:36:56] and we can start talking in terms that

[00:36:58] they already understand when they're

[00:36:59] talking about financial debt.

[00:37:00] So we talk about tech debt leverage,

[00:37:02] we can talk about the fact that

[00:37:03] we are leveraged to this point

[00:37:06] and that's going to be a problem

[00:37:08] so we have to get down to this point

[00:37:10] but we can also start addressing the fact

[00:37:11] that we are never going to be at zero

[00:37:15] from a tech debt perspective.

[00:37:18] Zero shouldn't be the goal

[00:37:19] because for whatever reason, whether it's

[00:37:23] hatching of systems, upgrading of old operating systems

[00:37:28] or as soon as you implement a solution

[00:37:30] there's already some tech debt there

[00:37:31] just like driving a car off the lot.

[00:37:34] As soon as you do that you have some depreciation.

[00:37:36] That's right.

[00:37:37] It's the same thing.

[00:37:38] We are constantly going to have some tech debt leverage.

[00:37:41] So we just have to understand

[00:37:43] what's the right amount of tech debt leverage

[00:37:45] for our company?

[00:37:47] What's our goal?

[00:37:48] So that's what this whole thing

[00:37:49] has kind of allowed me to help articulate

[00:37:51] and start having these conversations

[00:37:53] that have really turned out to be very, very valuable

[00:37:57] because in the past we've never been able

[00:38:00] to talk about it at all.

[00:38:02] Yeah.

[00:38:03] So in my world, we focus on learning and development,

[00:38:06] and the way I see any challenge problem is truly a,

[00:38:12] oh well how can we learn how to solve that

[00:38:13] if we don't know how to today?

[00:38:15] And obviously companies need to upgrade their technology

[00:38:20] based on their time and their IT strategy

[00:38:22] and what they hope to accomplish.

[00:38:24] There is a cost that comes with training people.

[00:38:28] What used to take them three minutes in the old system

[00:38:31] is gonna take them 30 minutes for a while

[00:38:33] so they gain some traction

[00:38:34] and increase their productivity and learn the system.

[00:38:38] Would you include that time in tech debt

[00:38:40] as it relates to the acquisition of a tech asset?

[00:38:45] Oh, for sure.

[00:38:46] Yeah, I think everything that has to do

[00:38:47] with the amount of time that's being put into that solution,

[00:38:52] whether it's on the technology team

[00:38:55] or whether it's on the line of business that's using it.

[00:38:58] How much time and effort is going

[00:39:00] into that piece of technology?

[00:39:04] Yes.

[00:39:04] And all of that contributes to tech debt

[00:39:06] because all of that is time

[00:39:08] that could be used doing something else.

[00:39:12] Agreed completely.

[00:39:14] What are some great examples of the use of tech debt

[00:39:18] from your perspective?

[00:39:19] Yeah, so I think first of all,

[00:39:20] this understanding that tech debt is not always bad.

[00:39:23] Right.

[00:39:24] I think that's the first kind of light bulb

[00:39:26] that whenever I have this conversation with people,

[00:39:30] that's kind of an aha moment.

[00:39:33] I have always thought this was a bad thing

[00:39:35] but as soon as you start talking about it

[00:39:37] in terms of hey, it's just like financial debt leverage,

[00:39:40] that's an aha moment.

[00:39:42] The other one is really the fact that quantifying tech debt

[00:39:47] because several times I've walked into companies

[00:39:49] where they talk about oh, we have so much tech debt.

[00:39:51] So how much do you have?

[00:39:53] Oh, it's a lot.

[00:39:56] Okay, well what does that mean?

[00:39:58] Well and from a business perspective, right?

[00:40:00] How much money are we spending on this tech debt?

[00:40:03] Is it really a problem or not?

[00:40:06] And so being able to quantify it

[00:40:09] I think is a huge benefit as well.

[00:40:13] And because again, that creates conversations now

[00:40:16] where we can have a discussion

[00:40:18] at the executive level to say hey,

[00:40:21] here's why we should have four chat solutions.

[00:40:25] Right, this is the amount of money it's costing us.

[00:40:27] This is the opportunity cost.

[00:40:31] This is what's happening from the backend perspective

[00:40:33] that none of you see when we're all trying

[00:40:35] to move data between all of these solutions

[00:40:38] where with this long-term solution that's our plan

[00:40:41] we wouldn't have to do that, right?

[00:40:42] So now we can have those conversations

[00:40:45] where if we didn't quantify it,

[00:40:47] we would just be saying yeah,

[00:40:49] who cares that we have four?

[00:40:50] It works for each division.

[00:40:51] So it's great.

[00:40:53] Yes, I'm also thinking the flip side of that conversation

[00:40:58] where I have a company I'm thinking of

[00:41:01] and they work with the fairly antiquated database

[00:41:05] there in the public health world

[00:41:06] but it's the most current version

[00:41:09] of a public health database that works for this sector.

[00:41:12] There's nothing like truly, truly innovative

[00:41:14] but there's a lot of customization that you can do to it.

[00:41:16] It's kind of like a sales force of their world

[00:41:19] and one of the leaders direct reports

[00:41:22] requested a dashboard to pull together

[00:41:25] all this information.

[00:41:26] Sounds like a super reasonable request

[00:41:28] so that this person can go in, look at the data

[00:41:31] and summary, have some red flags

[00:41:33] about what needs immediate attention,

[00:41:35] what is on the horizon for one, two, four weeks out,

[00:41:40] look at individual cases, completely reasonable request

[00:41:44] except to build that.

[00:41:45] Yes, except to build that out

[00:41:48] given the limitations of the system that they use

[00:41:50] that's a $4 million endeavor.

[00:41:52] And I may be exaggerating but it's a ton of money.

[00:41:57] Let's say realistically it would take $750,000

[00:42:02] to build out a dashboard.

[00:42:04] When the level of staff at their salary,

[00:42:07] like those folks rightly or wrongly

[00:42:11] won't make $750,000 in the next 10 years.

[00:42:15] That is chosen I guess tech debt or leveraging tech debt

[00:42:19] because the reality is it is much more cost effective

[00:42:22] for that person to manually gather that data

[00:42:26] and kind of create their own dashboards of ways

[00:42:29] on a daily basis versus investing in a dashboard

[00:42:32] in the system.

[00:42:33] Yeah, that's a great example.

[00:42:36] And because these are the challenges

[00:42:40] that it will break for an organization.

[00:42:42] Now in this case, the way you've explained it anyway,

[00:42:45] this particular solution,

[00:42:46] it is the most current that they have available for them.

[00:42:50] It doesn't have the capabilities

[00:42:54] that other solutions would have

[00:42:55] that would make it really easy to build these dashboards

[00:42:58] and do these ETLs and whatever else they would do.

[00:43:02] Yes.

[00:43:03] So that's where they are.

[00:43:05] So that's not necessarily,

[00:43:08] again this is an example of not a bad tech debt.

[00:43:12] Now they just have to make this cost benefit decision

[00:43:14] of well, is it worth it for us to build the dashboard

[00:43:17] given what it costs?

[00:43:18] Yes.

[00:43:19] But they can't upgrade this particular system

[00:43:22] because that's the most current they have.

[00:43:24] So that is what they should be using.

[00:43:27] Yes.

[00:43:28] But I mean-

[00:43:29] They understand the limitations of it.

[00:43:30] Yeah, yeah.

[00:43:31] Reality is of course they can upgrade to something else.

[00:43:34] Reality is of course there's another system

[00:43:37] maybe not exactly customized to their sector

[00:43:39] that could solve some of these problems,

[00:43:42] but those are also much larger cash investments

[00:43:45] that's not a reality either

[00:43:47] or not a choice they can make.

[00:43:49] Yeah, that's right.

[00:43:50] And again this is where this whole concept

[00:43:52] of quantifying your tech

[00:43:54] that allows you to now make these quantitative decisions.

[00:43:59] You can now quantify this and say,

[00:44:01] well this is what it costs.

[00:44:02] This is what this particular thing is costing us.

[00:44:05] It's costing us the inability to create these dashboards.

[00:44:10] So if these dashboards are going to be really important

[00:44:13] for us and we believe there's gonna be efficiencies

[00:44:15] that will come from that,

[00:44:16] well maybe then the solution is

[00:44:18] let's go upgrade this solution to something else

[00:44:21] so that we can have that.

[00:44:23] Of course, of course.

[00:44:25] And what you're inspiring me to think about Ken is

[00:44:29] and this is top of mind because I did a training yesterday

[00:44:32] on alignment and integration inside of an organization

[00:44:35] and so real quick integration is the ability

[00:44:37] to integrate goals from the IT help desk

[00:44:44] support coordinator all the way up to the CIO,

[00:44:47] to the CEO and strategic execution actually requires us

[00:44:52] to have that level of integration

[00:44:53] where all goals make sense

[00:44:55] and line up to organizational goals.

[00:44:57] It's not always literal

[00:44:58] and it's not always completely linear

[00:45:01] but that's integration and then alignment is

[00:45:04] in between the departments.

[00:45:05] So across the organization,

[00:45:07] goals also stack up to make sense

[00:45:09] and lead to organizational achievement.

[00:45:11] So that's alignment.

[00:45:13] And what you're,

[00:45:13] and I said something similar to what you just said is

[00:45:17] let's use this information to have conversations

[00:45:20] and discussions and create agreements about priorities

[00:45:23] across the organization

[00:45:25] and tech debt is one way to have that conversation to say

[00:45:30] cause really what we're getting at

[00:45:32] is misaligned priorities across the organization.

[00:45:35] And the more you have misalignment,

[00:45:38] the higher your debt is gonna be.

[00:45:40] The same is the higher your expenses are gonna be

[00:45:42] in XYZ department because two other departments

[00:45:46] can't decide on what's priority number one first.

[00:45:50] Yeah, excellent point.

[00:45:52] That's right.

[00:45:53] So it creates this visibility across the,

[00:45:56] between these silos, right?

[00:45:57] For lack of a better term

[00:45:59] where now when you start talking about

[00:46:01] tech debt and what it's costing us as an organization,

[00:46:04] now you can look at,

[00:46:06] because before that you'd look at the organization and say,

[00:46:08] well I have what I need.

[00:46:10] They have what they need.

[00:46:11] Who cares?

[00:46:12] Let's, let's keep going.

[00:46:13] Where now you can say,

[00:46:14] hey, this is what it's costing us

[00:46:17] from a bottom line perspective as an organization.

[00:46:20] So now we have this ability into,

[00:46:22] well, okay, this is what this is going to mean then

[00:46:24] for them to change.

[00:46:26] What's it gonna mean for us to change?

[00:46:28] Which one's the better one?

[00:46:29] Which one's the one to take into the future?

[00:46:31] So you create these more meaningful conversations

[00:46:35] because you now have this ability to quantify

[00:46:38] and discuss in real terms

[00:46:40] as opposed to some nebulous thing of,

[00:46:42] hey, it's just tech debt.

[00:46:44] It's just a lot.

[00:46:45] It's just a real big rubber.

[00:46:46] Yeah.

[00:46:47] So for our leaders that are listening in who are,

[00:46:50] and this is my last question

[00:46:51] because I gotta let you get back to solving some tech

[00:46:54] that is here.

[00:46:55] Yeah, hey.

[00:46:57] But for our leaders listening in who are like,

[00:46:59] oh, heck yes, Ken, like yes, I know we have tech debt,

[00:47:02] but the second step is having the conversation.

[00:47:06] What are some of the key questions

[00:47:07] that you think is important for leaders

[00:47:09] to bring to that conversation,

[00:47:11] to get to true partnership, true shared perspective?

[00:47:17] Yeah, well, again,

[00:47:18] I think you have to first of all identify.

[00:47:20] I think there's too much tech

[00:47:22] that is kind of under the covers

[00:47:25] that people don't know about.

[00:47:26] So you have to identify where this exists.

[00:47:30] So asking those questions about,

[00:47:32] what are you using?

[00:47:35] What are you using it for?

[00:47:36] Why are you using it?

[00:47:37] Understanding why duplication exists

[00:47:40] and where the gaps are.

[00:47:41] So those are the question.

[00:47:43] And then I think you have to understand,

[00:47:45] again, going back to this,

[00:47:47] this topic of the visibility between departments,

[00:47:52] between the silos of who is it going to be more painful?

[00:47:59] Who's gonna be more challenged

[00:48:02] to change their technology,

[00:48:04] to change what they're doing,

[00:48:05] to change their solution?

[00:48:07] And that's not always the only answer.

[00:48:10] You have to look at the costs associated with it.

[00:48:12] If this is a $500,000 solution,

[00:48:15] well, will the $20,000 solution work for everyone?

[00:48:19] Because financially that would be much better, right?

[00:48:21] For 80%, yeah, I tell you what,

[00:48:23] one of the things I work with with my client,

[00:48:25] it's a 700 person, about 700% IT organization

[00:48:29] as we talk about 80, 16, four.

[00:48:32] Does this work for 80% of the people?

[00:48:34] Yes.

[00:48:35] Then yes, that's the solution.

[00:48:36] 16% thinks that they're exception.

[00:48:39] They're not really that big of an exception,

[00:48:41] but you gotta talk through some of that

[00:48:42] and reconcile expectations or reconcile their needs.

[00:48:46] And 4% is truly the exception

[00:48:49] that where they might need a specialized solution

[00:48:51] or a customized solution.

[00:48:53] But if you can solve for 80,

[00:48:54] my God, you've solved for it for the company.

[00:48:57] Yeah, I love that.

[00:48:59] Yeah, I borrowed that from them.

[00:49:01] So...

[00:49:02] That's great.

[00:49:02] I love it.

[00:49:03] I'm gonna borrow it.

[00:49:06] So step one is bringing the numbers to the table.

[00:49:09] And you do that by asking why?

[00:49:11] Why is this important?

[00:49:13] Why is this needed?

[00:49:14] Why do we have this?

[00:49:15] Step two, if I heard you correctly,

[00:49:17] is okay, so let's talk about who is this most important for?

[00:49:22] And is this something that really sales opinion

[00:49:25] matters way more than ops opinion, for example,

[00:49:29] because of the nature of the company?

[00:49:31] Yeah, who's impacted more?

[00:49:32] That's what's been...

[00:49:33] Yes, yes, great question.

[00:49:34] Who's impacted more?

[00:49:36] And letting their voice carry more weight

[00:49:38] and sharing with people why?

[00:49:40] And then what would you say,

[00:49:41] just to kind of put this in a process

[00:49:43] for folks is the third step.

[00:49:44] Yeah, so then the last one would be

[00:49:46] what is your enterprise strategy?

[00:49:47] Going back to that nebulous question of,

[00:49:51] what is it?

[00:49:52] Because again, in this particular case,

[00:49:55] we had a chat solution that servicing was happy with,

[00:49:59] but a chat solution that sales was happy with.

[00:50:01] No one was even looking at the enterprise solution,

[00:50:05] chat solution.

[00:50:07] No one was even looking at that.

[00:50:09] And so we happened then answer the question,

[00:50:13] what is our IT strategy?

[00:50:17] And if the IT strategy is to use the platform

[00:50:22] because it's going to fix all these backend problems for us

[00:50:25] and it's gonna make us much more efficient

[00:50:26] from a data perspective,

[00:50:28] then getting rid of both of these solutions

[00:50:32] and merging them both into the platform

[00:50:34] is the right thing.

[00:50:35] Yes.

[00:50:36] That's not always the right thing.

[00:50:37] Sometimes there may be a reason to choose one or the other

[00:50:40] that's not part of your platform.

[00:50:42] So creating that IT strategy

[00:50:44] and getting everyone aligned around that strategy,

[00:50:46] that's kind of the third step in the process.

[00:50:49] Yes.

[00:50:50] And there's an element of when you're in a function like IT

[00:50:54] that if nobody is happy, you've found the right compromise.

[00:50:58] Like sometimes that's my gut suit, right?

[00:51:00] It's just like all y'all don't like it?

[00:51:02] Great, we made the right decision because...

[00:51:05] We finally got there.

[00:51:08] If everybody is equally dissatisfied, then we're good.

[00:51:11] Nailed it.

[00:51:12] That's right.

[00:51:15] And not out of spite at all, but it's merely...

[00:51:17] Someone had to make the decision.

[00:51:19] Someone had to step into the messiness of it

[00:51:22] and say, we're gonna take action and here's the action.

[00:51:25] And any leader that's bold enough to do that

[00:51:27] is doing the right thing.

[00:51:29] Bought on.

[00:51:30] I love it.

[00:51:31] Awesome.

[00:51:31] Oh my gosh, Ken, thank you so much

[00:51:33] for this great conversation.

[00:51:34] You got me all jazzed up

[00:51:36] and I actually have a client I wanna share this with

[00:51:39] cause I think they are going to love this conversation

[00:51:42] as much as I've loved it and take away so much.

[00:51:44] So thank you, thank you, thank you.

[00:51:46] Yeah, thanks for having me.

[00:51:47] This is a whole lot of fun.

[00:51:49] Oh my gosh.

[00:51:50] So Ken and I talked about so many things

[00:51:52] but here is the thing, the statement

[00:51:55] that is going to stick with me for a very long time

[00:51:58] and that is tech silos are cultural silos.

[00:52:03] Can I get an amen on that?

[00:52:06] Anytime we have tech that doesn't talk,

[00:52:08] we got people that don't talk.

[00:52:10] And so how do we break down those silos?

[00:52:13] You know, we certainly have our go-to tools.

[00:52:15] I know Ken does as well.

[00:52:17] You know, you've gotta tackle the tech silo

[00:52:19] and the cultural silo with slightly different tools

[00:52:22] but you have to bring them together.

[00:52:24] That's why I believe in our unifying

[00:52:26] change architecture strategy so much

[00:52:29] is that our companies are too splintered

[00:52:32] yet our top level leaders are too accountable

[00:52:35] for delivering shared results.

[00:52:37] And we just don't have our ducks in a row

[00:52:39] in order to do that.

[00:52:40] So I hope that you'll walk away

[00:52:42] from this conversation with the mantra,

[00:52:44] tech silos are cultural silos

[00:52:47] and know that there are resources out there

[00:52:49] to help you solve for that

[00:52:50] so we can bring cohesion to our organizations.

[00:52:53] All right, my friend, first and foremost

[00:52:55] if you got value from this conversation

[00:52:57] I would be unbelievably honored

[00:52:59] if you would share it with someone in your network

[00:53:01] so that we can bring more pro-troublemakers

[00:53:03] to this world, more folks will end up

[00:53:06] knock down those silos

[00:53:07] that are holding our organizations back.

[00:53:10] And now let's get off whatever medium

[00:53:12] we're listening to here and get back

[00:53:14] to focused transformational work

[00:53:16] that delivers impact for you, your team,

[00:53:20] your organization and the world

[00:53:21] and I'll see you soon, my friend.

Digital transformation broadcast network

Follow Us on LinkedIn

Follow us on LinkedIn and be part of the conversation!

Powered by