Info-Tech Research Group

In the 2001 North American recession, IT departments experienced mass layoffs and a reduction in resources. When the economy lifted from recession, many IT professionals left their companies and the IT field altogether, making succession planning more important than ever. Although the current economic downturn may present different challenges, the threat of layoffs still lingers in the minds of IT professionals. Even still, there is a shortage of IT talent, as IT departments struggle to fill positions. In a slowing economy, increase motivation and retention within the IT department by preparing employees for future leadership positions.<br />

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<strong>Internal Promotions Have a Proven Success Rate</strong><br />

Many studies have shown that internal hires often have a higher probability of success and retention rate than external hires. According to ERE.net, internal hires have a 90% success rate, while external hires average around 50%. During hard economic times, when employee morale is down, training and advancement programs are proven to motivate staff, improve productivity and retain employees. Preparing internal IT staff for leadership will not only help out in a tough economy, but will also stimulate IT employees and prepare the IT department for the future. Internal promotions should always be an option, but should not be considered for IT departments that require an immediate need for change. <strong><br />

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IT Leadership Qualifications</strong><br />

To qualify a potential candidate for a managerial leadership role within the IT department, Info-Tech suggests the following criteria.<br />

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"       Candidate has a history of success. Often, a history of success in a current role is a good predictor for future success, but should not be the only factor considered. Refer to former managers, performance reviews, and performance metrics to gain further insight into the employee's history at the organization.<br />

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"       Candidate has a management skill set. Change management, delegation, planning, project management, coaching, motivation, and soft skills are all necessary, but not inclusive skills for successful managers. An individual may not possess all of these skills, but should have the aptitude to acquire them. <br />

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"       Candidate has knowledge of the organization. Most senior IT positions require cross-functional coordination and knowledge of existing procedures and company policy. A candidate with a good understanding of the organization is often more prepared to take the lead. <br />

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"       Candidate is interested in management. Not all IT employees aspire to be leaders. Mentor and coach those employees who show a keen interest in leadership roles.<br />

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<strong>Recommendations</strong> <br />

The following recommendations will aid in identifying and developing potential leadership candidates. <br />

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1.       Identify a group of internal candidates. In order to ensure availability for multiple positions, look for candidates that possess a variety of skill sets. Use the criteria listed above to support the decision making process. To assess a candidate's potential, use the McLean Report "Succession Management Matrix. <br />

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2.       Create a list of necessary skills for a leader in the organization. Construct a list that documents all mandatory and desired skills for IT leaders within the organization. <br />

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3.       Create a list of each candidate's skills. Construct an IT skills inventory for each candidate that lists the leadership skills they currently possess. Use the McLean Report "IT Leadership Skills Inventory to map IT employee skills and progress to the skills required for successful leadership in the organization. <br />

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4.       Identify gaps between skills needed and existing skills. Compare and contrast the candidate's skills to those identified as significant for a leader within the organization and expose opportunities. <br />

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5.       Provide training to fill any gaps. During an economic downturn, a training budget may be reduced. However, there are other low cost options to train and familiarize potential leaders on processes within the organization. Consider mentoring, shadowing, online courses, research material, and vendor courses to get candidates up to speed. <br />

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6.       Implement a "manager-in-training program. Develop a training program to acquire and improve leadership skills. Consider options such as temporary management and project management. By leading a peer group, candidates can showcase their skills and management may identify any short-comings. <br />

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7.       Provide feedback. After a pre-determined amount of time, provide the leadership candidate with constructive feedback on his or her progress. Assess the individual's performance against a preset review or metrics, and identify areas of improvement. <br />

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8.       Communicate with the current manager. If a candidate currently reports to another manager, collaborate with him or her before making any decisions. <br />

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9.       Provide an option to return to a technical position. If candidates are reluctant to accept a management position, it may be an indication that they are not ready, however, it may also be fear of losing their current position, especially in a volatile economy. Assure the candidate that there is a contingency plan if the position does not work out. <br />

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10.       Avoid favoritism. In any organization, IT leaders often encounter employees who become discouraged or embarrassed if they are not chosen for a potential position. Avoid the perception of picking favorites and follow a formalized process.<br />

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<strong>Bottom Line<br />

</strong>IT departments have found it difficult to obtain qualified IT employees, especially for leadership positions. In the threat of recession, where hiring freezes may become the norm and layoffs are a possibility, it becomes imperative to retain existing IT staff. Prepare internal candidates now for leadership in the future. <br />

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