December 2008

With world events and business environments changing swiftly, anticipating skills and staff requirements for the future isn't easy. Here are 10 key Takeaway points from our recent coverage, as well as updates and new resources that will help IT executives recruit and retain staff and also help them keep a firm grip on the corporate ladder for themselves.

1. Lay the groundwork for tomorrow's teams. Toyota, GE Money, and Procter & Gamble all have sound strategies for keeping IT in sync with business requirements. Among these practices: Forge a close alignment between IT and the business units, have concrete programs for career advancement and leadership development, advocate for a more challenging and interesting IT work environment, and take a hard look at how you transfer knowledge among employees and train the next generation of IT staff. October Practices

2. Keep developing your internal staff. Internal staff development and robust career paths will keep the pool of next-generation IT leaders flowing, says Peter Cappelli. Cappelli is a Wharton School, University of Pennsylvania, professor and author of the recent book, Talent on Demand: Managing Talent in an Age of Uncertainty (Harvard Business Press, 2008). He says businesses should share the expense of training with the staff to maximize the returns on their talent investments. And to ensure retention, he recommends creating attractive IT career paths in-house and fostering cross-functional collaboration.September Insights

3. Think globally. A Global Talent Index research study conducted by HR firm Heidrick & Struggles and the Economist Intelligence Unit analyzed data from 30 countries and identified where talent is located in the world today and where it will be located five years from now. According to the results, the U.S., U.K., Canada, Sweden and the Netherlands take the lead today, but that will shift five years from now toward China, Australia, France, India and South Korea. To download an electronic version of the report, click here, or view the home page. November Resources

4. Be open to new ideas. In an interview, "Managing Generation Y," Tammy Erickson, President of NGenera Innovation Network, says that managers can learn a lot from the strong communication and technology skills that 20-somethings have, as well as their desire to share their ideas. Erickson also writes a blog, "Across the Ages," where she discusses Gen Y management, among other topics. November Resources

5. Hire boldly. "Hire with fire" and get the people on your team that really want the job the most, writes Rene Carayol, broadcaster, business adviser and author. He admits that finding those people is difficult, so he suggests discarding old recruiting methods and adopting some new ways "to spot the people with the right drive to really make a difference." His top advice? Look for those who are passionate about becoming part of your team. Also, remember that "the most successful organizations challenge, question and don't fall into comfortable routines." Read the article.

6. Make adjustments for virtual teams. As organizations become more collaborative and virtual, IT will have to ensure corporate governance compliance and adjust IT infrastructures to match workforce patterns, says John Halamka, CIO of CareGroup Health System and Dean for Technology at Harvard Medical School. Although that will require effort, it is worthwhile, he concludes. At CareGroup, virtual teams have "significantly improved" business processes in just a few months. Read the blog. November Resources

7. Focus on retention strategies. Many companies are facing challenges in retaining their valued employees during difficult economic conditions. These companies are searching for ways to help their employees feel valued and motivated while still adhering to their existing compensation philosophies and to recent belt-tightening policies.

Deloitte Consulting LLP's survey of 151 businesses in September found that 40 percent have already implemented a retention program; one-third are taking a "wait-and-see" approach; and 27 percent have no plans to adopt a retention program. Regarding incentive plans, 78 percent of respondents do not plan to change their current plan, but 53 percent are planning to adjust next year's annual incentive plans because of current economic conditions.

8. Reconsider retirement. New research from the McKinsey Global Institute will help IT executives to better plan for their own retirement and also for their workforce needs. The report concludes that the "only realistic way to prevent aging baby boomers from experiencing a significant decline in their living standards and becoming a multi-decade drag on U.S. and world economic growth" is for them to continue working beyond the traditional retirement age. However, that will require important changes in public policy, business practices and personal behavior, McKinsey says. Read the abstract.

9. Invest in key talent now. Although it may seem counterintuitive, there is no better time than now, when business conditions are difficult, to make highly strategic investments in talent, writes German Herrera, Analyst with Egon Zehnder International, in Miami. In fact, he says, "leading companies are still very much in the market for great talent. They know that difficult economic times offer a unique opportunity" to find superior people for the long term "while less farsighted companies hunker down." To persuade top executives to hire now, Herrera says, leaders should make the business case for a strategic hire, understand the current state of the talent market, and distinguish merely good talent from truly great talent. Check out the article.

10. Expect to see CIO shortages by 2010. Many forces are driving up the demand for CIOs, including the need for more IT execs at the business-unit level. A discussion about these trends was held in November by the CIO Club in London. Even firms that outsource large portions of their IT retain an executive function. And at some firms, particularly those with under $1 billion in sales, first-time CIOs are being appointed. "Finally, there is increased demand for individuals with CIO-like capabilities among IT service vendors, where business is growing very rapidly, as well as within non-IT functions like supply chain, shared services or various IT-enabled operations," according to the club.