Minding human assets

AS I WAS thinking about topics for this column, I realized that in the dozens of columns I have written, I have addressed a number of strategies for optimizing IT -- Linux and outsourcing, to name a couple. But I haven't written specifically about optimizing the one area to which your IT organization probably devotes the most dollars and overall energy: your human capital.

Free IT resource Open Source Business Conference (OSBC) May 22-23, 2007 Sponsored by OSBC Free IT resource Virtualization Insights from Top Experts - Learn how virtualization gets real! Sponsored by Dell

Of all the things that CTOs manage on a daily basis, successful management of human capital yields the most rewards. Despite what some vendors would have you believe, Web services applications don't build themselves , and despite all the "lights out" capabilities of the latest datacenter technologies, it's a good bet that your staff is spending a considerable amount of time fiddling with servers with the lights on. (If today's datacenter is truly a lights-out environment, then why do datacenters have the lights on every time I visit?)

IT is ultimately about people, and CTOs should make sure they pay as much attention to optimizing staff as optimizing IT infrastructure.

One way to optimize human capital is to consistently give your staff as much information about the state of your business as is appropriate. While this may seem obvious, I need to remind myself to do this regularly. At companies where the state of the business is not clearly communicated, the IT staff can be a center of discontent, complaining about lack of resources while feeling disconnected from the business. Make sure that your IT staff understands your company's products and services, the health of the market for those products and services, and the challenges your business is facing. If your company is losing money, your staff should know. This approach not only promotes openness, it can unlock new ideas from your staff that can help drive revenue.

Don't be afraid to talk business with the IT staff. Consider it mentoring the future CTOs in your midst.

Another way to optimize your human capital is through outsourcing. Conventional employee wisdom holds that outsourcers are the "enemy," however, when used correctly outsourcing can help your top IT employees perform more efficiently. If your staff is primarily devoted to software development, outsourcing nondevelopment functions such as network security and systems administration can help them focus more on their core competencies with fewer distractions.

Although outsourcing can provide huge benefits for your staff, you still need to choose wisely. A poor choice of an outsourcing partner can quickly frustrate the employees you're trying to help, so involve key staff appropriately when making outsourcing decisions.

Optimizing your staff also means weeding out poor performers. In May of last year, I wrote about making the right hire. But knowing when to release a failing employee is just as important. Disengaging from any employee is difficult, but poor performers can be the proverbial rotten apples that can spoil the whole barrel. Allowing an employee to work at a subpar level without management intervention eventually damages morale and encourages top performers to slack off. Termination should be the last resort in dealing with any employee problem, but don't be afraid to pull the plug.

Finally, encouraging your staff to have disciplined fun and stay loose on the job can reap dividends. A workplace without laughter is a workplace without inspiration. Technology can be a frustrating mess, but maintaining a sense of humor can help staff through the big challenges.

It's a job, but technology should be fun -- that's why we all do it for a living.