Depressing jobs advice

By | July 10, 2010, 12:15am PDT

Summary: If you assume the worst part of the recession is yet to come and you’re an IT manager what should you do? Go into survival mode with project freezes, lay-offs, and promotions for the technically brilliant but politically incorrect on your staff.

In the past my advice to people looking at the effect world economic events have on their responsibilities as IT or other managers in businesses and agencies has been more optimistic than otherwise. Thus during the eight years of the Bush administration I told people to ignore media attempts to talk down the economy because jobs were being created and world trade markets were growing - and therefore that managers should invest in R&D, while treating savings oportunities created by technology as re-investment and retraining opportunities for growing the business.

Since the democrats took over the American Congress in 2006 and Executive constraint disappeared in 2008, I’ve been saying something different in detail but similar in perception: that people should ignore media attempts to talk up a failing economy as unemployment rose and world markets weakened, while cutting checks written to third parties and making every possible effort to save employee jobs.

Two weeks ago I started saying something else entirely: that it’s time for employment triage in hopes that the accumulating misery will push political change forward while the expense reductions enable your business or agency to survive long enough to rehire people when the next growth phase arrives.

In particular we have to recognize that world trade depends mostly on markets in the United States and Western Europe with the latter having intractable demographic and political problems and only the Americans having the near term opportunity, in November, of affecting sufficient political change to start the world economy on the path to recovery.

So how do you triage jobs and who’s most affected? In an American context the who is easy: nearly everyone’s affected, but it’s county, municipal, school board, and state employees who are most affected right now because those levels of government are hitting their debt ceilings and can neither print money nor extract it from unemployed taxpayers - while in western Europe the loss of high value jobs to regulators, green policies, and government funded competitors in Asia continues to drive rapid erosion in the continent’s manufacturing, distribution, and energy infrastructure.

The how part is simple but terrible: in rough terms triage means laying off the one third of your staff you’re most likely to lose anyway as the depression deepens, re-assigning some survivors to force positive change, and relying on the remainder to keep things going in the short term.

Thus in the IT context you freeze evolutionary change, drop unproductive but politically correct projects, lay-off everyone working in change support (i.e. many of your help desk people) including planning and acquisition, take yet another look at what you can do without in third party support, and look carefully at what’s left to see who you can usefully assign to tiger teams empowered to find and implement better ways to serve users while cutting total organizational costs.

The hardest thing here isn’t the layoffs or the workload survivors will face: it’s putting people you don’t like or approve of in control, and then giving them a mandate to force disruptive change.

In thinking about this, remember that your surviving crew can do the job with the tools they have for a little while, but that if you can’t learn how do more with a lot less, external change will eventually overwhelm them. The model for this is Winston Churchill and a host of lesser wartime leaders nearly all of whom were widely reviled for views nobody wanted to hear -until the horrendous losses incurred by the politically correct forced their promotion.

We’re not there yet and the sky’s not quite falling, but the odds don’t look good - and while nobody wants to slaughter a bunch of sacred cows, you’re probably going to need to do it, and because that’s what war time promotees do best you’re usually much better off reaching for them early rather than late.

Look for three things in choosing these people:

  1. they’re usually not liked within their own management heirarchies;

  2. user management sees them as people they can trust to get results but has learnt not to mention them in meetings with you or your middle management team; and,
  3. in their own work they consistently produce good results, but are often attacked for it by those who couldn’t get the job done on process or personal grounds.

Understand, particularly if you work in education or local government, that these people will want to consider things like replacing the entire Wintel infrastructure with some mix of more modern devices like Sun Rays, iPads, and large SMP servers. Thus their ideas, like this one, are usually things you and your line managers wouldn’t be caught dead considering - but, like this one which could dramatically reduce IT costs while enhancing both security and user productivity, are among the choices you have to consider if your employer is to meet payroll next year.

The bottom line on this is simple: if survival means cutting off two arms and leg, you cut them off - and if it means laying off a third of your staff while promoting and empowering people advocating disruptive change, than that’s what you do.

Besides, there is a hidden silver lining: because your user side colleagues are facing similar pressures and similar decisions, it’s a gimme that they’re listening to anyone promising to cut their IT overheads - and will listen to you if you first take action in your own sphere and then come back to them on those good ideas of yours they wouldn’t listen to last year.

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Topics

Paul Murphy (a pseudonym) is an IT consultant specializing in Unix and related technologies.

Disclosure

Paul Murphy

I do not work for, or otherwise receive anything from, any of the companies I write about. I have some money in a number of funds that bet on the markets, including the technology market, but have no direct control over how these funds are administered or what investments are made. I use Sun and Apple technology both at home and at work.

Biography

Paul Murphy

Originally a Math/Physics graduate who couldn't cut it in his own field, Paul Murphy (a pseudonym) became an IT consultant specializing in Unix and related technologies after a stint working for a DARPA contractor programming in Fortran and APL. Since then he's worked in both systems management and consulting for a range of employers including KPMG, the government of Alberta, and his own firm. In those roles he's "been there and done that" for just about every aspect of systems management and operation.

Talkback Most Recent of 26 Talkback(s)

  • I don't agree
    IT has largely been spared the purging that all other forms of employment have been subjected to. Companies have sat too long without replacing IT workers, and now they are doing it with a vengeance. In fact, I just got hired into a new job (start on the 19th). Companies will sacrifice everyone else BEFORE they go after their IT staff.

    As for your dementia of the Bush years, I understand (quickly calling the white coats to come take you away). Starting 2 disastrous (in terms of cost) wars and continuing another (the "War on Drugs") that is making our southern border into Afghanistan 2. When you flush so much cash down the toilet, it just doesn't matter what Congress does with the (tiny) "other" portion.

    I believe in the economists that say we are in for a "double dip" recession. 2011 will be brutal - especially for unskilled labor. But you didn't have to write such a long intro for your standard idea set of DumbRays. It can save costs, but it is just too hard to demonstrate that fact. Add to that the unwillingness of the listeners and you end up . . . here.
    ZDNet Gravatar
    Roger Ramjet
    10th Jul 2010
  • ZDNet Gravatar
    murph_z
    10th Jul 2010
  • RE: Depressing jobs advice
    @murph_z
    So why should we believe you Murph. Certainly Sun equipment doesn't seem to have stood the test of time... They went from being #1 in computer hardware equipment sales to #4 and going downward, as Sun went in a fire sale. You were wrong over and over again.. on the SCO lawsuits verdicts.... Your 'believe'(sic) certainly is not the reality that 'works'.

    Look at what Oracle did... they cut R&D on Sparc, like I said that Sun should .. and poof... they return to profitability... imagine that.

    Roger is correct that for the most part IT jobs have been not feeling the effects of the recession that started in december 2007, compared to other industries. The experts in computer trends... IDC and Gartner, don't share your pessimistic viewpoint. They forecast growth in the later half of 2010 and 2011 for the IT sector. Also, the other hardware vendors are looking optimistically, with many various new hardware launches slated for later this year.

    Don't worry though... the nightmare that Sun experienced in 2000-2010 is now going to another hardware vendor.
    The dawn of a new era of computing is about to launch in the next month.

    To paraphrase Tolkien, "the one computer to rule them all,one computer to find them, one computer to bring them all and in the darkness bind them".

    If you thought virtualization/consolidation was a nightmare for Sun, just wait and see what happens next.
    ZDNet Gravatar
    scotth_z
    11th Jul 2010
  • And now the straight up facts
    Here's a recent story from Any Grove entitled "How to Make an American Job Before it's Too Late":

    http://www.bloomberg.com/news/2010-07-01/how-to-make-an-american-job-before-it-s-too-late-andy-grove.html

    Read the facts and send a copy of the link to Andy Grove's story to your Family and Friends and as many people as you know.

    It is important to get out the word on what I believe is the most important central issue to America in 50 years:

    Job Creation
    ZDNet Gravatar
    Dietrich T. Schmitz, ~ Your Linux Advocate
    10th Jul 2010
  • Agreed
    @Dietrich T. Schmitz, Your Linux Advocate
    ZDNet Gravatar
    murph_z
    10th Jul 2010
  • Andy Grove got his. Everyone else can get screwed.
    @murph_z Did you just agree with Andy Grove's plan for creating jobs? I am shocked. I am shocked that a young man who fled communist Hungary in 1956 writes about tanks in Washington DC in 1932 driving unemployed protesters away from the White House. What about the tanks in Budapest in 1956? They were shooting to kill. Andy Grove had a lot of nerve fleeing a communist country, where everyone has a job, then complaining today about our economy. Andy Grove got his. He off-shored hundreds of thousands of jobs, built factories across the globe, jacked up profits for Intel, and pocketed hundreds of millions of dollars. He has a lot of nerve telling the rest of us that
    someone else should have a hand in our business decisions.

    I'll concede that Andy Grove has a good idea with the U.S. Scaling Bank. Put
    a special tax on products made with off-shore labor. Keep that money separate, like social security. Give it to Barak Obama, Barney Frank, and Christopher Dodd. Delegate even more responsibility to them so that they can make wise decisions on future winners that will guarantee full employment.
    ZDNet Gravatar
    dc.martin@...
    10th Jul 2010
  • You agree with Andy Grove?
    @murph_z Then you must be having one hell of an argument with yourself. It's kind of a librulbigguvment thing he's proposing, you know.
    ZDNet Gravatar
    Lester Young
    11th Jul 2010
  • RE: Depressing jobs advice
    @Dietrich T. Schmitz, Your Linux Advocate
    Good read, thanks for the link! Makes so much sense it will never happen. Unfortunately corporate lobbyists would kill any measures trying to be passed by congress that would eat into their profits. Bringing factory jobs back to USA would certainly do that.
    ZDNet Gravatar
    AboveAverageJoe
    10th Jul 2010
  • RE: Depressing jobs advice
    @AboveAverageJoe

    Farmers get paid subsidies don't they?
    Oh, it'll happen.
    ZDNet Gravatar
    Dietrich T. Schmitz, ~ Your Linux Advocate
    10th Jul 2010
  • Two Sides
    @Dietrich T. Schmitz, Your Linux Advocate
    I'll see your Andy Grove article against startups based on a few anecdotal observations and raise you a researched, data backed article for startups:
    http://globaleconomicanalysis.blogspot.com/2010/07/bleak-outlook-for-small-businesses-and.html
    Regardless of these two views, the article on this page seems to have no connection with reality. I generally share the political leanings of Murphy but can't fathom how comes to the conclusions he does - SunRays? iPads? Really? Somehow this sounds like: stop spending money on low cost support labor so you can spend big money on high cost consultants and migration teams... and hope you have no cost in retraining your user base. There is a lot of fantasy here that seems to be driven by ideology. Fair enough, it's about page views and not anybody actually acting on what you say so I can appreciate that. Probably more page views with a headline like "With Obama and Microsoft - Cut Jobs to Survive".
    ZDNet Gravatar
    hawks5999
    12th Jul 2010
  • Go back to Canada Murph...
    ...and leave US politics alone.

    We're dealing with an environmental catastrophe which is surely influenced by the deluded belief that corporations are best at policing themselves.

    Now if you had a system in place to effectively deal with the administrative nightmare of regulation, and a requirement for subcontractors or other interested parties to report environmentally risky decisions (as it was know beforehand that the engineering was not sound) then maybe things in the gulf could be different. That is what IT is for you know, to deal with administrative complexity.

    One more thing Murph. Reagonomics was just a way to get out of stagflation and create jobs by investing in factories and whatnot. Today though, any investment will be in the 3rd world due to labor incentive. The policies of yesterday will not build jobs today while simultaneously we need to deal with the fiscal reality the Reagan left us with.

    OK so your plan again is too cut taxes on the rich so they can invest in China. OK got it. Deregulate more so we can role the dice on companies doing the right thing or not (which we know they won't when looking at profit potential).

    Let's see. Tell me again how growing the wealth of the top 1% is going to result in jobs for IT workers. It's a pipe dream. Put the pipe down Murph for the love of humanity.
    ZDNet Gravatar
    javajunkie@...
    10th Jul 2010
  • huh?
    @javajunkie@...

    Say what? Shouldn't you read the article before commenting on it?
    ZDNet Gravatar
    murph_z
    11th Jul 2010
  • ZDNet Gravatar
    toadlife
    13th Jul 2010
  • RE: Depressing jobs advice
    these people will want to consider things like replacing the entire Wintel infrastructure with some mix of more modern devices like Sun Rays, iPads, and large SMP servers.
    -------------------------------------------

    I think that my bull meter just broke.
    ZDNet Gravatar
    aaaa123354
    12th Jul 2010
  • RE: Depressing jobs advice
    I feel that IT gets the boot first. IT department at our company cut half staff, reduced our budget greatly...A lot of companies look at IT as just an expense, not something they can't do without (which they can't)...
    ZDNet Gravatar
    skelden
    12th Jul 2010

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