Tag: consulting

  • How Do I Find An IT Solution?

    How Do I Find An IT Solution?

    This post starts a series to walk one through the questions we must answer in finding solutions for business problems. We will focus on IT solutions because so many challenges are best solved through automation. That is where software applications shine. However, there will be situations where your best solution is not found in IT. You will find a path to those other solutions when you answer the questions we explore.

    Start Here

    You can spend a lot of money on software consultants and solution providers. They may or may not guide you to the best solution. Therefore, this free list of questions may be the best investment of your time. It would be best to answer these questions, or at least be aware of them, as you research what works best for you.

    Before continuing, note that the best solution requires investing time and money. A good consultant or provider can guide you, but they must learn how your business works. This is not a summary or overview but will be in-depth. Think of it as building a house. You do not simply say, “I want a house with X bedrooms and Y baths,” there is far more detail you provide. A good business solution is no less complicated. The details will help you find an IT solution that fits you like a custom-tailored suit.

    My Checklist of Questions

    Let’s start with those questions we need to ask. We will explore them in more depth in this and upcoming posts.

    What Is The Problem You Want To Solve?

    This question appears evident at first glance. However, it is often skipped over or not provided the thought it deserves. The challenge in answering this question is to solve a problem and not one of the symptoms. Think of a doctor that treats a fever instead of curing a disease. Unfortunately, that is often what we do in business, particularly in software. An excellent way to approach this is to return to your childhood and ask “why” until you reach the root desire. It is incredible how often this provides not only a better solution but also a far simpler implementation.

    An Example Problem To Solve

    I think an example works best for this aspect. We can start with a customer that wants to be able to copy data from one application to another. The goal is to open application A, do a sort of screen print of data and then be able to paste the data into application B. Awesome, now ask why. They want to paste because they have orders entered into one system and then need to put that data into a fulfillment system. This situation is not uncommon. Multiple systems and data need to flow from one to another.

    Rethink Your Process

    We have a few jumping-off points. However, we will focus on the back end. What happens with the fulfillment system? Why enter data in that? The answer is that the order is printed out and handed to the warehouse for pick and shipping. The shipping information is printed and sent to someone to enter into the fulfillment application. Then, they repeat the process with application A. Then, an order is marked fulfilled, and data is entered into system A to show it was shipped. We can see where there are duplicate entry points and the opportunity for data entry errors. Fortunately, it is not uncommon for us to see a system’s flaws when we walk through it step-by-step. While some organizations require printed forms and data, that is becoming rare. Instead, the case is often that “we always did it that way,” and the challenge is changing rather than a business need. However, you can find an IT solution with less cost than you think.

    Find The Right Perspective

    The example also provides an error in perspective. Too often, we focus on a single problem or pain point and fail to step back and analyze how we got there. In the above case, the problem is not getting data from system A to system B. Instead, it is getting data from a customer through shipping, invoicing, and fulfillment. Software projects can struggle due to a change in scope or focus. The original problem is shown to be insufficient once the project starts. That can lead to many challenges we can avoid by starting with a better handle on our final goal. Instead, we find an IT solution before knowing how to solve the problem correctly.

    The First Question To Answer

    Any successful journey has a starting point and a destination. Every project is the same way. We will improve our chances for success substantially by assessing where we are and where we want to go. Therefore, you must first answer, “What is the problem you want to solve?” There is no need to find an IT solution until you have that answer. While there are consultants that can help you refine your answer or answers, you will be hard-pressed to find the best resources or approach until you have a solid solution to start with. We are available to help you in your journey. However, you can often do yourself a huge favor by asking yourself, “why?” a few more times before you search for someone to solve your problem.

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  • Making Fixed Bid Projects A Success

    Making Fixed Bid Projects A Success

    I am not a fan of fixed bid projects in general. That distaste is such that I have turned some down in the past. However, sometimes we need to step into one of these arrangements. It is worth considering the actions we need to take to keep such projects fair to all parties. Here are some lessons I have learned from personal experience and from others that have entered into these agreements. The successes and failures are excellent teachers for this billing strategy.

    Fixed Bid Struggles

    I want to start the discussion by highlighting some of the weaknesses of this process that we want to overcome. The first is that it pits parties against each other. It is in the best interest of the customer to get as much into the project as they can while the provider will want the least in it. Ideally, there will be a “just right” amount of work in the project, so the work that is done matches the compensation. This goal highlights another weakness. The vendor will want to “pad” the price to cover overages while the customer will focus on the lowest cost. Thus, any time the work is not highly defined, the two sides are hedging their risk for the work-compensation ratio. Finally, changes are difficult for these projects. Every little change will potentially require the vendor to be paid more, and the customer will want to argue against that. This situation often triggers conversations about what is a “bug” and features that were implied or assumed.

    Reduce The Competition

    The first and foremost issue we want to remove is pitting the parties against each other. The best way to resolve this is to get the pieces defined and set in place from the start. We want to set expectations for everyone involved. Our challenge lies in reducing (or at least identifying) the risks involved in a project. Thus, it is best to “chop up” the project into smaller pieces that can be easily defined and assessed. That leads to milestones. I think these are the key to successful fixed bid projects. Likewise, the are others that agree with me.

    Milestones are an excellent way to reduce a complex project into smaller, more manageable pieces. Likewise, each milestone has reduced overall risk and allows the parties to make adjustments as the project proceeds. Each step along the way will have a set of deliverables, a time frame, and a related cost. This process can still work within a greater fixed bid budget for time and cost. However, it will highlight issues sooner in the process so the parties can open discussions before one or both are in an untenable situation.

    The Sum Of The Parts

    The “just right” amount of work balanced against the requirements can be challenging to assess with a large project. When the work is simplified into a series of milestones, it becomes easier to find that balance. The focus for both functions and meeting them becomes smaller and more likely to comprehend. For example, think about your favorite application that has multiple top-level menus. Most Word Processing and Spreadsheet applications fall into this category. If you were to assess how that application meets a set of requirements, it is far easier to do so a menu item at a time than trying to look for features across all items. This thought process is not rocket science; we need to consider that adding items adds complexity and expands focus. This challenge is no different than discussing a single decision as opposed to a series of them. There are flow and side effects that come into play far more often in an extensive system than those milestones. These can make it harder for all parties to do their respective jobs.

    Managing Changes

    Change requests are always a challenge as the project progresses. There are bugs, requirements changes, and scope changes that can fall into this category. Typically, bugs are part of the fixed amount while the other two may require a fixed addition. I have found it helps to start with a bid and expectations that includes some minor changes. When you take this approach you get to avoid “nickel and dime” issues where large amounts of time are spent haggling through each item. When this happens, a project can slow to a crawl. There is always the option of pushing changes off until a project completes. However, there are times when that is not realistic. Of course, adding in some “buffer” for changes can make it hard to do an apple to apple comparison of project bids.

    Changes are more of a challenge when they are done in a granular matter. The better your ability (on both sides) to group these tasks into a bundle, the less the headache. When you avoid minute details of tasks, you avoid long conversations with little benefit. This also allows for “buffer” required per job to be rolled into a total buffer amount that will often be far less than the sum of the individual items. There is a form of averaging of risk that can be applied. Think of it as being able to make fewer estimations and risk assessments. It is not much different than an insurance company assessing risk across a large number of customers rather than having to spend time on each individual.

    The Bottom Line

    When you think about an hourly rate or time and materials, it is similar to milestones of an hour (or the time block paid). However, there are not always going to be a deliverable for those milestones other than time spent. Ideally, we have two goals. The first is to complete the overall project. The second is to complete the steps required to reach the primary objective. We can use milestones to bundle together hours of work into a deliverable and reduce risk on both sides. Each party just needs to stay open to the idea of adjustments along the way.

  • Thank You For Your Business – Customer Appreciation Tips

    Thank You For Your Business – Customer Appreciation Tips

    Each year we enter a season of giving and thankfulness as it winds down.  One of the things that come out of this is a sort of season of customer appreciation.  The challenge in this attitude is finding the best way to show our appreciation without coming off too sappy.  We want to thank our customers and build loyalty, not overwhelm them with more selling.

    To Brand or Not To Brand

    The first decision to make with this customer appreciation “gifts” is whether we slap a logo or other brand label on them.  Do we give our customers a notebook with our logo on it? A nice drinking glass with our motto? Or some other knick-knack that is a glaring reminder of who gave it?  I think the answer to this question can be found in our other seasonal gifts.

    Do you buy your relatives a gift stamped with your name?  Do those gifts you give, scream the source of them?  No, you often give something that is about the recipient instead.  Now, there is a consideration of how to handle gift-giving from a company.  When you stamp your label on an item, it can be filed under marketing.  I think this is understood by most people, so it is not seen negatively.  Therefore, if you want to put a logo on an item, try to make it subtle.  There are good examples of this all over where a typical logo is replaced with one for marketing purposes.  You can fall back on the golden rule (sort of) in this situation.  Ask yourself if the emblem is unobtrusive or subtle enough that you would use the gift in public without feeling “odd.”

    Does Size Matter?

    The size or value of the gifts is always part of the consideration as well.  There are industries where limits are placed on gifts, and that makes it easy.  However, I find it far more common to be in a sort of Wild West of gift valuation.  In these situations, I think it is a heart decision.  How generous do you want to be?

    It is easy to use some sort of percentage of profits from a customer as a rule of thumb.  For example, take five percent of the profits earned and use that as a measure of what to give.  That feels a bit cold and calculated though.  I think you will find a better response when you focus on utility first and then find a value that fits.  A personal example was a gift of laptop bags for customers.  It started with the idea of those backpacks being desirable.  Heck, I even got one for myself that I use daily.  Then I looked at options that fit my rough budget.  The focus was the gift, not the sales appeal or monetary valuation of it.  This approach helps build a rapport as it shows thoughtfulness instead of simply a business relationship.  Customers like to be appreciated for more than just their wallet.

    The Moment of Truth

    The last facet of gift-giving I want to visit is the delivery.  I think we all agree that hand-delivering the gifts is always best.  It is a personal touch and a chance to show our sincerity.  You might also see it as a chance to sell to your customers.  I have seen this a lot from consulting companies.  The gift then becomes an excuse to get a few minutes of time from decision makers.  I recommend you avoid this at all costs.  You will get a lot more loyalty out of giving a gift with no strings (or sales) attached than one more shot at a sale.

    Business and personal life often coincide in the modern world.  The season of giving is no different.  Just make sure you come at it with the right attitude.