代写留学生论文MSc IT Management in Construction
Module: IT Management
IT Management Formulating Strategy (BS, IS and IT) Dr Jack Goulding University of Salford © Salford University, Salford 2007
MSc IT Management in Construction
Module: IT Management
Table of Contents
1.0 Preamble .................................................................................................................................................... 1
1.1 Learning Package Information 1
2.0 Introduction to Business Strategy ............................................................................................................ 1
2.1 Business Strategy 2
2.2 Information System Strategy 8
2.3 Strategic Planning 13
2.4 Business Performance Techniques 15
3.0 Use of IT in Construction ......................................................................................................................... 20
3.1 IT in Construction 20
3.2 Strategic Use of IT 23
3.3 The IT Strategy 23
4.0 IT Training ................................................................................................................................................ 26
4.1 IT Training and the Business Strategy 27
4.2 IT Training Resource Requirements 29
4.3 IT Training Needs Analysis 30
4.3 Barriers to Success 36
4.4 IT Training Strategy 38
4.5 Performance Gap Analysis 40
4.5 IT Training Strategy Development 44
4.6 Monitoring Performance 45
5.0 Conclusion ............................................................................................................................................... 46
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1.0 Preamble
1.1 Learning Package Information
This module requires learners to participate in three core areas of activity – see Figure 1.1
Figure 1.1 Study Activities
Where:
Reading – acquires knowledge and understanding the key issues
Case Studies – develops further understanding (context)
Problem Solving – demonstrates understanding
2.0 Introduction to Business Strategy
Construction companies are increasingly being bombarded by a stream of business pressures which
have the potential, both directly and indirectly, to fundamentally affect their current and future
competitiveness. These pressures constitute increasing pervasive and rapid drivers of change which,
unless due managerial vigilance and business improvement is taken, might render companies‟ past
modes of operation inappropriate for their prevailing business environments. This relentless onslaught
of obsolescence prescribes that companies needs to create and manage mechanisms which
effectively scan and filter the business environment for pressures which impact upon the company and
to interpret, translate and internalise their implications in order to direct and generate appropriate
business improvement responses.
Senior managers within organisations are increasingly concerned with the processes involved in
providing strategic direction (Morgan, 1990). This direction is often channelled through a structured
framework often described by the term „Business Strategy‟ (BS), the framework of which defines all
business goals and objectives – most notably typified in findings by Ansoff (1968) and Porter (1985).
However, research on BS formulation tends to embrace a wide range of theories and perceptions, the
nuances of which often invite ambiguity and misinterpretation (especially from a taxonomy
perspective). To limit any possible confusion therefore, any reference to the term „BS‟ should be
interpreted in the context defined by Porter (1985), as this viewpoint in particular identifies the link
between competitive opportunities and high-level processes (Davenport, 1993).
This module reviews the available literature concerning the issues and concepts surrounding the
development of organisational business strategies. Specifically, the remit of this literature review
extends to include all peripheral areas deemed influential or supportive of this aim, which therefore
includes; inter-industry theories and perspectives, organisational and management theory, and the
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social sciences (as appropriate). In this context, it also embraces: corporate strategy; information systems strategy; strategic planning; and business performance techniques.
2.1 Business Strategy
Organisational resources and energies should be directed through the BS to achieve the corporate vision (or mission) of stakeholders. In this context, it is imperative that key drivers and enablers affecting success are fully understood – especially concerning BS formulation, implementation, and subsequent evaluation. The term „strategy‟ is derived from the word strategos (Greek), meaning “the art of the general”, the denotation of which refers to the science of deploying military, economic and political resources to achieve the objectives of war. It first gained recognition at the end of the 18th Century, as military tactics were becoming increasingly more important. However, strategy is now used to describe or define a range of actions to accomplish goals, the remit of which extends to include numerous areas, including sport, politics, business etc. Within the business context, business strategy (or corporate strategy as it is often called) is the pattern of decisions made within a company to determine organisational goals and objectives. The precise definition of strategy in this remit is however more difficult to determine, evidenced by perceptions and methodological approaches taken by a range of authors (Ansoff, 1968; Porter, 1985; Mintzberg and Quinn, 1991; Robson, 1997; Ward and Griffiths, 1997). However, fundamental acceptance of the terminology of strategy does not inhibit consensus regarding the establishment of policies and plans to achieve strategy; the process of which embraces all human and economic issues, and in most cases the consideration of shareholders, customers and the wider community. The fundamental details of the BS should therefore focus on how a company competes and positions itself in the marketplace, in particular, how it focuses resources to convert competence into strategic advantage. The range and variety of strategies companies can implement is almost infinite, from desires to gain a high return on equity, through to aspirations of market dominance or continued growth. The driving force of these strategies is normally focussed through a „mission statement‟, „company vision‟ or „statement of intent‟. These terms can be considered ostensibly as meaning the same (Robson, 1997), as they are all designed to articulate a desire to achieve corporate goals and objectives. Business Strategy – Principles The term „Business Strategy‟ is often interchanged with the concepts and notions associated with „corporate strategy‟. To remove ambiguity therefore, the tenet of discussion will focus exclusively on the BS definition, except where any discreet nuances require separate clarification. The BS is ostensibly concerned with the creation of a long-term policy to satisfy the needs of business imperatives (and not short-term operational issues). The principles and notions therefore, deal with the structuring of decision patterns needed to perform and excel in the business environment. This requires considerable business acumen, as these decisions often shape the way in which the business evolves and the way it is perceived in the wider community – therefore affecting the character and image of the company. In essence, strategic decisions help to position the company in the operating environment, allowing it the capacity to mobilise its strengths to fulfil corporate goals. The central functions within the company must therefore be aligned to these needs, which include: systems and procedures; sales and marketing; manufacturing and production; and all resources (human and physical) to support these processes. The BS should therefore be forward looking, and wherever possible, include the following key attributes: Include Non-Financial Aspects: Focussing purely on financial issues can often ostracise a number of key stakeholders, the organisational personnel being a prime example.
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Be Measurable: Strategies that can not be measured or quantified are relatively meaningless – goals must therefore be set, and subsequently measured (and evaluated).
Be Focussed and Distinctive: Specific aspects of the strategy must be targeted, as a broad-range approach can often stifle corporate advancement.
Be Innovative, Inspirational and Flexible: A clear strategy can help direct energies in a positive direction, often leading to advancement in niche areas. Flexible strategies are more able to respond to change whilst maintaining business focus.
The process involved in creating the BS and strategic plans are normally kept confidential for commercial reasons, as these initiatives often contain sensitive information that could be useful to competitors. In addition, some strategists often withhold information from internal employees, either to deliberately mislead them, or to avoid internal resistance from those directly affected by strategy implications (Andrews, 1987). Business Strategy – Developments Developments in BS have evolved from the strategy formulation side of the process, through to concentrating on the implementation aspects. This has allowed the psychological, sociological and political domains to be better integrated into the strategic management arena, and allowed a greater amount of synthesis to occur (Robson, 1997). From a historical perspective, the School of Organisational Theory (circa 1900) emphasised the importance of labour in business; whereas, the Scientific Management and Classical School (during 1910-1920) focussed on duties and coordination. However, the concept of corporate strategy and the need to forecast future business direction was not made until the arrival of the Group Dynamics and Bureaucracy Schools of thought (circa 1940‟s). During this period, Fayol (1949) was one of the first main proponents of this cause, out of which long-term strategy started to evolve and develop. Advancements in strategy from this period up to the 1960‟s then tended to converge on forecasting trends (Leadership, Decision Theory and Sociotechnical School), with numerous researchers citing evidence of a predictive nature. In the 1970‟s, the arrival of Systems Theory replaced the term „long-term strategy planning‟ with „strategic planning‟, the concept of which attempted to focus more closely on the elements of competition and the expanding markets. The arrival of Contingency Theory in the 1980‟s led to research in organisational structures and processes; and Porter (1985) was one of the main pioneers of strategic decision-making in competitive environments during this period – the generic strategies of which are still widely accepted today. The current vogue in BS development is however centred on understanding the concepts and principles that govern competition. In this guise, issues involving „systems thinking‟, „chaos theory‟ and the „learning organisation‟ are being progressed (Stacey, 1993; Huber, 1991). In addition, these improvements are increasingly using IT as a core tool and enabler of strategy (Ward and Griffiths, 1997; Robson, 1997; Rockart et al, 1996); and issues surrounding the impact and value of organisational learning on strategy is also being given greater importance (Gratton et al, 1996; Joia, 2000; Raghuram, 1994; Barlow and Jashapara, 1998; Kim, 1993).
Two schools of thought have been primarily concerned with strategy development, specifically – the Analytical School, and the Pattern School. The Analytical School assumes the notion that strategists can be trained, and that strategy can be applied using models based on empirical evidence. However, there have been some concerns over the use of these models, predominantly because these are based on the assumption that the environment is predictable. Furthermore, these models ignore the behavioural aspects of strategy, and fail to recognise the interdependence of activities. The Pattern School however, believes that strategic decisions are rarely the result of planned actions, but more the result of channelling resources and energies into areas on a trial and error basis (Robson, 1997).
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Thus, the value of a process-based approach is derived from understanding how resources are
committed, specifically through the adjustment of pattern decisions to influence outcomes.
Business Strategy – Formulation Issues
The formulation of the BS envelops many issues, not least, identifying opportunities and threats facing
the company. These factors should also consider the company‟s strengths and weaknesses (and the
resources available to service any perceived needs). This process is often referred to as the SWOT
Analysis (Strengths, Weakness, Opportunities and Threats), the details of which are discussed later in
this module.
Strategy therefore has to balance processes and perceptions, with aspirations, ethics, and
organisational competence. Andrews (1987), classified these issues into four key areas, specifically:
Market Opportunity; Corporate Competence and Resources; Personal Values and Aspirations; and
Acknowledged Obligations to Society, the relationship of these BS issues in the formulation process is
shown in Figure 2.1.
CORPORATE
STRATEGY:
Pattern of purposes
and policies defining
the company and its
businesses
FORMULATION
(Deciding what to do)
IMPLEMENTATION
(Achieving results)
1. Identification of
opportunity and risk
2. Determining the company's
material, technical, and
human resources
3. Personal values and
aspirations
4. Acknowledgement of
noneconomic responsibility
1. Organization structure and
relationships
Division of work
Coordination of divided
responsibility
Information systems
2. Organizational processes
and behavior
Standards and
measurement
Motivation and incentive
systems
Control systems
Recruitment and
development of managers
3. Top leadership
Strategic
Organizational
Personal
Figure 2.1 Strategy Decisions (Andrews, 1987)
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Strategy formulation should also consider the company‟s capacity to meet the needs of the market, to
match opportunity with corporate capability (Andrews, 1987), and Porter‟s (1979) Five Forces Model
provides insight into how this may be achieved. The extent in which the notion of risk is addressed at
the formation stage depends primarily upon the identified market opportunity and the perception of
corporate ability to compete in this sector. The formulation of the BS must therefore critically examine
many factors, not least: organisational strategic plans and initiatives, business processes, technology
issues, and corporate resources.
These factors were later expanded by Ward and Griffiths (1997), the work of which emphasised the
importance of analysing the economic environment in context with the internal resources and
prevailing level of competence (skills). These concepts, identified in Figure 2.2, distinguish how
changes in strategy can often directly/indirectly affect working practices, which influences the business
process and/or level of subsequent technology deployed to support it. Furthermore, internally and
externally driven activities should strive to balance these identified variables. Emphasis must therefore
be placed on ensuring that BS deliverables are strategically focussed and weighted appropriately to
facilitate success (Ward and Griffiths, 1997).
INTERNALLY
DRIVEN
EXTERNALLY
DRIVEN
Economic
Environment
Market
Requirements
Competitors
Stakeholder
Demands
Resources
Competences
BUSINESS STRATEGY
1. Operational Excellence
2. Customer Intimacy?
3. Product Leadership?
Figure 2.2 Forces Which Shape Strategy (Ward and Griffiths, 1997)
In summary, the stages involved in forming the BS embraces many issues, not least, competitor
analysis and the prevailing economic climate. The investigation into these processes should invite
critical analysis of the company‟s present position to its desired position. Furthermore, strategy
objectives should be focussed and measured in context to company capability and organisational
capacity.
Stakeholder Considerations
Many factors can affect the formulation of the BS, most notably the influence of stakeholders (Ward
and Griffiths, 1997). The precise definition of the term „stakeholder‟ can however be very subjective,
having many meanings, ranging from shareholders, parent companies, and clients; through to
employees, government bodies and external pressure groups. Stakeholder influence can however
affect the endeavours of organisations by exerting pressure, often encompassing management
direction, leadership, and organisational aspirations – the main issues of which are identified in Figure
2.3.
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Technological
Legal
Ecological
Social
Political
Economic
Construction
Organisation
Government
Bodies
Unions
Clients
General Public
Financial
Institutions
Sub-
Contractors
Shareholders
Competitors
Figure 2.3 Stakeholders and Key Influencing Pressure Areas
The development of the BS should therefore try to ameliorate or minimise any negative pressure
areas wherever possible. For example, in a construction context, the economic climate identified in
Figure 2.3 can often influence the profits and pricing structure of organisations; this is also affected by
the level of taxation and prevailing interest rates. Whereas, the economic and social issues tend to
affect the level of clients‟ disposable income, and the political factors frequently influences the
availability of labour to service needs. Other external pressure areas sometimes influence changes in
legislation, which may cause organisations to radically alter their current thinking and/or working
practices, leading to an additional call on financial resources. Ecological (environmental) factors and
„green‟ issues also frequently affects the marketability of products and services, which can directly
influence demand. Furthermore, changes in technology tends to shape the way in which projects are
procured and managed, which can often mean new skills are needed to meet these challenges.
The BS is therefore directly affected by stakeholder influence, the effects of which manipulate the
scope and direction of a company‟s aspirations. However, internal stakeholders can be particularly
beneficial to the contribution and delivery of the BS, and the Human Resource Management (HRM)
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issues frequently contribute to the success or failure of strategies (Damodaran, 1998). Strategy formulation should therefore involve all stakeholders in the decision-making process (wherever practicable), an added benefit of which can also help minimise difficulties with subsequent implementation. In summary, the impact of stakeholder analysis on the BS should be taken seriously to achieve a balanced view of outcomes and perspectives (Walker, 2000). Managers must therefore be aware of all resource implications and needs regarding stakeholder pressures and influences, and be able to conceptualise the impact these may have on the BS. Business Strategy – Implementation Issues The implementation of the BS requires a series of activities to be undertaken to direct corporate resources and energies more effectively. This procedure requires the organisational information systems and structures to be coordinated and aligned with the BS to achieve the desired outcomes. The strategy of decisions identified in Figure 2.1 outlines the procedures required for successful implementation. These matters must therefore embrace the organisational structure and processes, leadership, and personal issues (Andrews, 1987). The organisational structure and processes includes the relationship, coordination and division of work through appropriate control systems and leadership. This also incorporates the standards and incentives needed to ensure the pattern of purposes defined by the BS are achieved. In this context, implementation issues therefore naturally embrace the significance of technological, economic, social and political trends. However, these effects are often subject to change throughout the implementation process, and can subsequently influence business direction. It is therefore important to invoke a series of surveillance measures and checks to assess the potential influences these factors could have on the BS. Consequently, the BS should thus be able to accommodate changes by matching opportunities with competence and core capabilities (Mintzberg and Quinn, 1991). Implementation of strategy therefore requires effectual leadership to ensure the pattern of purposes and policies are delivered in accordance with the desires and aspirations of the company. This process requires attention to the organisational structure and interrelationships that exist, including: the division and allocation of work issues; the direction and coordination of responsibility; and the mobilisation and implementation of company information systems. Organisational leadership is also required to ensure processes and procedures are followed regarding the implementation (and application) of measurement and control systems. This is especially important for controlling process issues, as subsequent evaluation is fundamental to the identification and acknowledgement of process improvement issues that could have an impact on the BS. Business Strategy – Evaluation Issues The factors and issues previously identified in Figure 2.1 require a formal mechanism to assess (and evaluate) their effectiveness in the BS. The BS must therefore be able to accommodate these evaluation mechanisms, the feedback of which can enable future strategies to be amended accordingly. The evaluation process should not however just focus exclusively on the strategy‟s ability to deliver the stated objectives; it should also extend to embrace other factors and issues – especially the following areas (Andrews, 1987; Mintzberg and Quinn, 1991): the ability to exploit corporate competence and resources (which should be matched to core capability).
to ensure clarity of purpose and consistency of message (unclear strategies can often diffuse objectives and lead to ambiguous findings).
to deliver overall effectiveness (focussing on BS uniqueness, and the ability to strategically target niche areas).
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to identify risk (the effectiveness and ability to offset the effects of risk on predicted outcomes).
to encompass organisational aspirations (the efficacy of meeting the needs and desires of the company).
to contribute to society (the ability to encompass ethical, social and political issues).
to interface with organisation systems (the alignment of strategy with the internal systems and procedures).
The evaluation process should therefore specifically target areas of particular significance, especially those that directly contribute to the strategic objectives of the company. However, care must be taken not to misinterpret results or extol complacency, as either of these factors can often attract financial repercussions. Furthermore, too much emphasis placed on fiscal analysis can also have a detrimental impact on the holistic strategic process (Andrews, 1987). In summary, the evaluation process is used to assess whether the objectives and policies of the company are appropriate to the overall needs and aspirations of stakeholders. A particular area of concern noted by Mintzberg and Quinn, (1991), identified that failure to motivate and challenge corporate staff through the BS could influence the achievement of the desired outcomes, and possibly compromise the company‟s competitive position. In this context, the formulation of the BS should perhaps be better refined to accurately reflect the aspirations of organisational personnel (Mintzberg and Quinn, 1991).
2.2 Information System Strategy
The information system strategy (ISS) is a structured information support mechanism designed specifically for delivering the information needs of the company. It therefore encompasses all the information requirements of the business, and is the main vehicle by which information is communicated and directed through the organisation. The infrastructure of the ISS should be formulated and directly aligned to the information system (IS) needs identified by the BS. In this context, the alignment of the ISS should be used to directly underpin, address and deliver the key operational, support, and strategic information requirements. Introduction and Definition Information systems should be targeted towards the critical core needs of the business. In this context, understanding these needs and how they can be delivered by the organisational IS to add value to the business is an essential part of this process (Remenyi and Sherwood-Smith, 1999). The ISS must therefore be flexible, accessible, easy to understand, and be capable of being communicated to the intended audience. It should also be able to accommodate and address the following issues (Ward and Griffiths, 1997): what information is needed to support the business needs – including the type, format and structure of information.
be capable of being aligned to the business goals – the IS support structures should be matched to these needs.
how it can add value to the business – areas and priorities should be targeted to improving the productivity of all staff (operational, support, strategic and high potential areas).
how it can exploit information to create strategic advantage.
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how it can improve the effectiveness of processes – this should incorporate ways in which information can be used to assist the decision-making process.
be capable of exploiting IS resources – emphasis should be placed on ensuring core IS resources are appropriately exploited to maximise business opportunities.
The ISS can be developed in a number of ways (Robson, 1997; Ward and Griffiths, 1997; Porter and Millar, 1985; Burn, 1996). The rationale of these approaches thus aims to assess the existing IS situation (together with the pressures, trends and competitive forces that exist in the business environment), to develop an appropriate IS strategy that ameliorates and satisfies the business needs. Information Systems – Principles and Developments Documentation associated with the development and evolution of information systems is not particularly well recorded, perhaps reflecting its relatively new prevalence and acceptance as a scientific tool in the business arena. However, from a historical perspective, information systems started to make their impact in the 1950‟s with the arrival of the first business mainframe computers. The format and structure of the IS systems at this point tended to focus ostensibly on trying to address operational needs. In the 1960‟s, IS systems started to address transactional issues to improve overall productivity. At this point, Anthony (1965) developed an IS model that defined the support structure for strategic planning and operational/managerial control. In the 1970‟s and early 1980‟s, the formulation of IS strategies started to be established, the remit of which evolved from transactional and support issues, through to decision support methodologies (to improve effectiveness). Developments by Nolan (1979), identified a six stage model highlighting the stages of IS and IT evolution (albeit later widely criticised for its lack of empirical data and inconsistencies). During the late 1980‟s (and up to the present date), IS strategy developments have concentrated on providing business with a key strategic support mechanism, to procure competitive advantage. The most influential models produced during this time were developed by Porter and Millar (1985), and Ward and Griffiths (1997). In particular, Porter and Millar (1985) were strong proponents of the need to focus on using IS systems to promote and deliver business objectives. They produced a „Five Forces‟ model that was specifically designed to focus on IS issues – the details of which are shown in Figure 2.4. Porter and Millar‟s (1985) model, identified five forces concerning the IS support mechanism that could affect and determine the overall profitability of a business. The principles and concepts behind Porter and Millar‟s Five Forces model, are still often referred to by current research in IS strategy development. However, later developments in IS thinking is now trying to determine (and assess) the real „value‟ of IS systems to the business. This is especially important, as the costs associated with developing and applying IS strategies to business can often consume a considerable amount of resources.
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Can IS change
the basis of
competition?
Can IS build
barriers to entry?
Can IS change
the balance of
power with
suppliers?
Can IS build in
switching
costs?
Can IS generate
new products or
services?
Figure 2.4 Five Forces Model (Porter and Millar, 1985)
Research into ISS developments by Ward and Griffiths (1997) tried to address the problem of
determining the true value of IS systems to the business. Numerous IS initiatives and concepts were
explored, and one of the most influential models from this genre attempted to identify „value‟, in terms
of operational; support; strategic; and potential to the business – the details of which are indicated in
Figure 2.5.
Strategic High Potential
Key Operational Support
Critical to business
and of greatest
potential value
Potential value to
business may be
high, but not
confirmed
Needed for
supporting
business, but little
strategic value
Essential for primary
purposes and value
enhanced by
horizontal
integration
High Low
Low
High
Value of
Information
to Future
Strategy
Value of Information to Current Strategy
Figure 2.5 Value of Information to Current Strategy (Ward and Griffiths, 1997)
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This model identifies the ISS into four key areas (depending upon the classification and perceived
value to the business). It therefore allows users to categorise and determine the value of information
from a key operational or support perspective, through to strategic and high potential areas. In this
context, IS support can be thus be assessed at the same time as the BS is being developed, the
process of which enables resources to be prioritised (and aligned) to the most effective process areas
to deliver the BS objectives.
To summarise, advancements in ISS developments have continued to evolve from the transactional
and data processing remits, through to the stage where they now offer ever-increasing levels of
strategic importance. The use and application of the ISS is therefore now seen as a fundamental
process driver and enabler of strategy; offering unprecedented levels of business support, which can
be a unique source of competitive advantage.
Interface with the Business Strategy
The ISS should embody all key business processes, and act as a conduit for channelling and driving
company IS resources effectively. Moreover, its principal function should focus on ensuring the
company remains in business and sustains long-term growth and success. It must therefore
encompass the organisational workforce (and their inherent culture) and be able to empower them to
succeed through strategic vision. These issues were identified by Rockart and Scott-Morton (1984),
who explored the relationship between the organisation, technology, people, management processes,
and organisational strategy (in the form of a conceptual model). This model, indicated in Figure 2.6,
highlights the significant influence of management as the central core process, and identifies that
organisational strategy and technological capability is greatly affected by the external environment –
which is a good starting point for analysing how organisations operate.
Organization Structure
and the Corporate Culture
The Organization's
Strategy
Management
Processes
Individuals and Roles
Technology
Figure 2.6 Conceptual Model - Technology Impact (Rockart and Scott-Morton, 1984)
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Problem Exercise
Why is it important to link the Information System Strategy to the Business Strategy?
Discuss your thoughts about this exercise with your co-students and the module tutor using
the online discussion board and weekly tutorials.
Understanding the interrelationships that exist between all these processes (and how they relate to the
BS and ISS) is essential for supporting the delivery of any business objectives. The ISS for example is
the main vehicle used to underpin, support and deliver the BS objectives, the relationship of which is
identified in Figure 2.7.
Supportive Infrastructure
Business
Strategy
Figure 2.7 The BS and Supportive Infrastructure
Figure 2.7 depicts a pyramid in two segments; the top section of which identifies the BS information
needs; and the bottom section identifies the supportive infrastructure needed to deliver these needs.
The arrows designate the flow of information required between these two segments. In this context,
the lower section of the pyramid can be considered as the ISS and its associated infrastructure. This
relationship identifies the importance of engaging a coherent supportive ISS infrastructure that is
optimally geared (and aligned) to the BS deliverables. This formal representation can be further
disaggregated into the ISS and the Information Technology Strategy (ITS), or (in general terms); the
ISS is the procedures and mechanisms needed to support the BS; whereas the ITS is the technology
used to deliver the ISS (Robson, 1997).
In summary, the IS support mechanism can be used to exploit and maximise business benefits
(Remenyi and Sherwood-Smith, 1998), but the process of aligning the IS strategy to BS critical
success factors (CSFs) can often be difficult to achieve (Burn, 1996), especially in environments that
are continually changing (and are not in a steady state).
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2.3 Strategic Planning
Strategic Planning (SP) is a management process derived from the BS to deliver the vision (or mission) of the company. This process is the main vehicle by which companies channel their corporate energies and resources; to address business deficiencies and deliver value-adding benefits to the organisation (from a strategic perspective). The mechanics of SP must however reflect the constraints imposed by the BS; which includes implementation timeframes, organisational capability, and level of resources available. Introduction and Definition SP should be directly integrated with the ISS, IT strategy, and the internal/external business environment (Ward and Griffiths, 1997). In this context, the conception of the strategic plan should be undertaken at the same time as the development of the BS; and wherever possible, commenced in-line with any strategic change or re-engineering initiatives. This co-development can allow these strategies to be better aligned to all key identifiable deliverables. The main aim of SP is to develop and maintain overall consistency, specifically by defining the strategic approach needed for directing corporate resources effectively. This approach is well documented (Ward and Griffiths, 1997; Noorderhaven, 1995; Robson, 1997), and is a fundamental part of the business process. SP therefore requires managers to translate and detail all implementation plans needed to facilitate the appropriate course of action to implement strategy (Venegas and Alarcón, 1997). This requires a series of activities to take place, the procedural aspects of which are dependent on company needs. These needs reflect the prevailing market conditions, level of planned change, and the stage of organisational maturation (level of maturity). These factors therefore determine the nature, need, and frequency the SP cycle has to be undertaken. Strategic Planning – Principles and Developments The development, evolution and concepts of SP can be found in the works of Chandler (1962); Ansoff (1968); Porter (1979, 1985); Andrews (1987); Minzberg and Quinn, (1991). These authors formed the basic tenets of SP as it is known today. Chandler (1962) identified (and focussed on) the organisational issues of SP, along with Ansoff (1968) and Andrews (1987). Porter (1979, 1985) however, tried to frame the planning process into generic strategies, whereas Mintzberg and Quinn (1991) used the Five P‟s (plan, ploy, pattern, position, perspective) to identify and coordinate the planning principles. Recent developments in SP are now increasingly focusing on the use of IT in this process. Advancements in this area have been made by many researchers, most notably Hammer and Champy (1993); Ward and Peppard (1996); Robson, 1997; Ward and Griffiths (1997). The principles and tenet of the SP process should be flexible by nature, reflecting the business need to be able to respond to change. Change in the context of SP envelops many areas, not least BS goals, timelines and budget constraints. Thus, SP can use performance indicators (or goals to measure against), to allow a course of action to be followed (to change the company‟s present position to the desired position). Gaps between the desired levels of achievement and the current position are thus analysed, and subsequently addressed by a series of SP strategies. These strategies appraise the type of activity undertaken; determine the level and suitability of expertise available; assess the appropriateness and effectiveness of the business process; embrace financial considerations and level of associated risk; and incorporate the prevailing culture within the organisation. These procedures are of major significance and importance to the business undertaking (Warszawski, 1996; Ward and Griffiths, 1997), yet are rarely shared with all the stakeholders involved (Rapert et al, 1996). From an organisational perspective, the vision (or mission) of the company can be directly delivered through the SP process. SP therefore has to encompass strategic analysis (mission and goals), strategic choice (options), and strategic implementation (policies, decisions, actions). This relationship was defined by Robson (1997), the details of which are identified in Figure 2.8.
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Mission
Goals
Strategies
Policies
Decisions
Actions
Strategic
Analysis
Strategic
Implementation
What should we be doing?
Where are we going?
What routes have we selected?
How do we guide our collective
decisions to get there?
What choices do we have?
Shall we do it?
Planning
Element
Plan
Component
Key
Question
Figure 2.8 Model of the Strategic Planning Process (Robson, 1997)
The strategic planning process model identified in Figure 2.8 highlights the interrelationships that exist
between strategic analysis and strategic implementation. This model also identifies how the mission
encompasses the main purpose of the company, the details of which should be clear and
unambiguous (which can be used to define target outcomes, express strong values, and provide
guidance for action). Goals are derived from the mission, and are used to define the future position of
the company (using tangible and measurable objectives). Strategy therefore, provides the means for
defining the direction the company must follow to meet these goals and achieve the mission (which
includes resource issues, capabilities, structure, leadership, culture etc) Finally, the policy component
is used for implementing change issues derived from the strategy (to measure and judge strategy
success).
Process Management Issues
A process view of business allows activities to be viewed as a series of structured events, with inputs
and outputs, and a mechanism for action. Using a process view can allow relationships to be more
readily identified, and often leads to improvements in performance (Davenport, 1993).
Process issues have developmental links with systems thinking, industrial engineering and the quality
movement. Historically however, perhaps the origins of process as a discipline should be attributed to
Taylor (1911), as this work focussed on process improvements using the science of work-study.
Process related improvements are also evident in the works by Mayo (1933), and Fayol (1949). More
recently however, and particularly with the advent of Business Process Reengineering (BPR),
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business improvements have been cited as achieving many benefits using process as the focus of attention (Hammer, 1990; Davenport, 1993; Valiris and Glykas, 1999). The concept of process management can therefore be used with SP to identify how effective processes are in meeting business objectives. This approach enables areas contributing to the delivery of these objectives to be more readily identified, the procedure of which: identifies core processes that contribute to performance
assesses the current effectiveness of these processes
examines the urgency and need to improve these areas
develops and applies changes as needed (using benchmarking and best practice if appropriate)
assesses the effectiveness of these changes (to evaluate the overall effect on performance)
Process management is increasingly being used to support business needs, particularly in production and technology-driven environments. In this context, it has the capacity to integrate process issues with: technology, systems and procedures, organisational structures, change initiatives, and organisational learning. As the rate and pace of change in the construction industry is ever increasing, and IT capability continues to expand, the use of SP with a process management approach appears to continue to offer many business benefits.
2.4 Business Performance Techniques
Business performance is often adversely influenced by a number of factors, the majority of which tend to embrace sociological, technological and managerial issues relating to corporate structures, and the interrelationship of people to processes. The term „performance‟ however can often have different connotations, and to aid clarity the following definitions are offered: • Performance Objective – a critical success factor for achieving the mission • Performance Goal – a target level or objective • Performance Measure – a qualitative or quantitative performance measure • Performance Measurement – a process of measuring/assessing progress • Performance Management – the use of performance measurement From a commercial perspective however, business performance almost invariably tends to refer to financial performance. In this context, financial performance measures are often undertaken for a number of reasons, not least, to ensure resources are deployed appropriately and effectively. These measures often include metrics associated with ratio analysis – derived from company balance sheets and profit and loss accounts. However, the use of financial measures alone does not necessarily create a balanced view of performance (Andrews, 1987; Mintzberg and Quinn, 1991; Lee and Sai On Ko, 2000). Balanced Scorecard System The Balanced Scorecard (BSC) is a conceptual framework developed by Kaplan and Norton (1992) to assess the impact of decisions on the business. It is used to translate the corporate mission and strategic objectives into a set of performance indicators. These performance indicators are identified in four perspectives, which include:
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Financial – targets, profit turnover etc.
Customer – quality, service, stakeholder needs etc.
Internal Business Processes – processes, performance, objectives etc.
Learning and Growth – skills, capabilities, change issues, alignment etc.
The BSC‟s methodology enables users to set targets and measure progress for each of these four perspectives, in an attempt to overview and determine the company‟s position. This process identifies areas for improvement, and places „value‟ on results. All targets have milestones, the structure of which establishes the strategic direction. The BSC can also be used to accommodate generic performance measures matched to corporate goals. Later refinements to this framework focussed on using the BSC as a strategic management system (Kaplan and Norton, 1996). These developments invited mangers to concentrate on improving, or reengineering those processes deemed critical to organisational strategic success. It also enabled the BS to be aligned to predetermined „action‟ criteria. In summary, whilst the BSC may help some managers understand and implement BS more effectively, not all measures can however be fully quantified using this approach (Roest, 1997). Furthermore, this framework may not necessarily be suited to all organisations (Letza, 1996), as it often fails to recognise the importance of organisational culture and the influence of corporate maturation. Benchmarking Benchmarking is a process that attempts to measure the performance of one company (or activity) against the performance of another. It is thought to have originated in the 1970‟s with the Xerox Corporation in the United States of America (USA), the benefits of which helped the company improve competitiveness and stay in business. Benchmarking is normally undertaken with competitors in a similar environment and market sector („best in class‟ or world-leaders if possible), which therefore enables cognate comparisons to be made, to help facilitate continuous improvement (Davenport, 1993). In addition, there is a field of thought that suggests that benchmarking should also be applied across other industry sectors irrespective of discipline (Clark et al, 1999; Atkin, 2000), the procedure of which could offer complimentary insight (and corresponding business benefits), especially where generic processes exist. Users of benchmarking must however be aware of its limitations, as the exact factors that influence success are not always readily discernable. Furthermore, the choice of company to benchmark against, can also provide a further set of difficulties, as insular differences can often lead to misinterpretation of findings. This can also be adversely influenced by ethical and legal issues (Spendolini, 1992), or through insufficient knowledge of the exact processes being benchmarked against. Notwithstanding these limitations, benchmarking can be used as a catalyst for change (Pickrell and Garnett, 1996), and if used appropriately, can help organisations manage the transition of change more effectively. The main rationale of benchmarking is however to establish and measure „best practice‟ in processes deemed critical to the delivery of BS objectives. This undertaking therefore identifies areas considered interoperable and capable of improving process. It is a dynamic and evolving process, the results from which can enable organisations to continuously develop and evolve – to generally perform better in the marketplace. In addition, it also allows performance gaps to be identified (Karim et al, 1997; Mohamed and Tilley, 1997). However, the actual procedure of benchmarking can only be undertaken if the processes to be benchmarked are fully understood (and are capable of being measured against).
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Performance Analysis (Gap Analysis)
Performance analysis is a tool used for applying and measuring performance targets, the procedure of
which is normally undertaken on mission-critical activities. The main objective of this tool is to measure
performance achievement against predetermined targets, the purpose of which is to analyse any gaps
in performance. The difference between the current level of achievement and the desired target is
known as the performance gap (or opportunity gap) – the details of which are indicated in Figure 2.9.
This procedure can also be known as gap analysis, variance analysis, and numerous derivatives
thereof.
Achievement
Optimal Performance Level
Area
'X'
Area
'Y'
Area
'Z'
Current Performance Level
LOW
HIGH
Opportunity
Gap
Target
Figure 2.9 Performance Analysis Chart
The details identified in Figure 2.9, highlight three main areas for performance analysis, specifically:
Area „X‟, Area „Y‟ and Area „Z‟. The performance target achievement levels for each of these areas
are represented by the dashed line. From this representation, it can be seen that the greatest area for
improvement rests with Area „Z‟. In this context, if this activity was classed as critical to the delivery of
the BS objectives, then resources should be prioritised accordingly to this area – to address
performance deficiencies and close the identified performance gap.
Gap analysis is widely used in the construction, manufacturing, and financial sectors. It is a valuable
tool used for controlling resource driven activities over time (to predict trends), the mechanics of which
can often be applied to a variety of different process areas. Whilst these areas usually embrace
production-related activities, it can however also extend to include skills development (Van Daal et al,
1998); intellectual capital (Joia, 2000); gaps in IS and IT (Ward and Griffiths, 1997); gaps in culture
(Ward and Griffiths, 1997) and even Human Resource Management (HRM) issues. Furthermore, from
a strategic perspective, it can also be used to identify gaps in capabilities in relation to the
opportunities and threats associated with the external environment (Harrison and Pelletier, 2000).
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Problem Exercise
Why is it important to be able to know your current performance levels before setting targets?
How can you determine which of the areas will have the greatest impact on the business strategy (to
create competitive advantage)?
Discuss your thoughts about this exercise with your co-students and the module tutor using
the online discussion board and weekly tutorials.
360 Degree Feedback System
Whilst not directly related to business performance per se, the 360-degree feedback system is a
mechanism used for evaluating employee performance. Employee performance can however be
linked to business performance, and it is in this context this tool is discussed.
The 360-degree feedback system can not be directly attributable to one originating author. It is
however, widely recognised (and used) as a major source of feedback for evaluating the effectiveness
of training. It is also known as full-circle feedback, upward appraisal, multi-perspective rating, multisource
assessment, and multi-rater feedback.
The operational mechanics of the 360-degree approach are designed to elicit performance information
from peers; the rationale of which aims to „pool‟ this information to provide constructive feedback
(hence 360 degree). It therefore encompasses all employees, from subordinates to line-managers.
However, peer evaluation is not used exclusively, as this system can also accommodate selfassessment
as part of the feedback process. This feedback provides employees with important
information, highlighting what skills (and behaviour) are important to the organisation – and how these
can be matched to the corporate needs. Managers can therefore target and reinforce any desired
corporate core skills in context to the BS needs. Furthermore, the 360-degree system can also be
used in performance appraisal and to establish personal development plans.
Feedback is therefore a fundamental component of the learning process, and as such, it can be used
to form (and update) training and development plans. This helps foster change initiatives, and can
often help to facilitate continuous learning and improvement initiatives (Edwards, 1996). The 360-
degree approach is therefore a powerful tool of empowerment; the use of which can also often lead to
a change in organisational culture (London and Beatty, 1993). However, this approach will only
succeed where the core values of the organisation are supportive of training and development, and
where personnel are committed to this process as a means of enhancing overall competitiveness
(Garavan et al, 1997).
SWOT Analysis
The SWOT analysis is an analytical tool used to form (and shape) the BS, the procedure of which is
also known as „situation analysis‟. Its main purpose is to identify strategic pointers, to focus resources
and capabilities effectively (Robson, 1997). In this context, it should therefore consider the following
issues:
Resources – financial health of the company etc.
Products offered – appropriateness etc.
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People – skills, competence, leadership, motivation etc.
Assets and liabilities
Organisational structure – corporate strategy, level of culture etc.
Market influences – present and future
Competitors – effect on company
These issues are normally condensed into the SWOT (strengths, weaknesses, opportunities, threats) analysis, allowing the company to “… use its strengths to exploit opportunities… address weaknesses… and defend against threats” (Ward and Griffiths, 1997). Strengths, include issues that the company is good at, which includes items like core capabilities, or having a distinct product. Weaknesses however, include items that the company needs to address – covering resources issues, skill levels, inability to respond to change etc. Opportunities, are areas that the company could exploit, which often includes new markets, mergers etc. Whereas threats, are the immediate dangers facing the company – which tends to include any immediate and pressing issues, such as competitors (but can also embraces technical, economic, physical, political and social factors). In summary, the SWOT analysis can provide organisations with a structured and systematic method for clarifying purpose (to achieve business focus and direction). Furthermore, additional benefits from this approach can be derived by co-joining this technique with other business performance measures (Lee and Sai On Ko, 2000). However, managers should be aware that, whilst core capabilities and resources should be coordinated to support and underpin the BS, this must be tempered by balancing opportunity with competence (Andrews, 1987). Summary Providing strategic direction is increasingly important (Morgan, 1990), the procedure of which can be delivered using the BS. In this context, organisations are increasingly focussing their energies, resources, and aspirations into the development of strategy, and IT is now seen as a core tool and enabler of this process (Ward and Griffiths, 1997; Robson, 1997; Rockart et al, 1996). However, construction professionals still need to appreciate some important issues, particularly concerning strategic analysis, knowledge management, and new emerging technologies (Goodman and Chinowsky, 1997). Issues surrounding the impact and value of organisational learning are now increasingly becoming more important (Gratton et al, 1996; Joia, 2000; Raghuram, 1994; Barlow and Jashapara, 1998; Kim, 1993). Organisations should therefore try to match opportunity with corporate capability (Andrews, 1987), and in this context, the development of skills through training is particularly important (Raghuram, 1994; Ahmad et al, 1995; Cooper and Markus, 1995; Rockart et al 1996). Furthermore, organisations are progressively using process to improve business performance (Soares and Anderson, 1997; Chan and Land, 1999), and the remit of process management is also continuing to provide enhanced business opportunities (Davenport, 1993; Al-Mashari and Zairi, 2000; Aouad1 et al, 1999; Chan and Land, 1999). This chapter highlighted the importance of linking the BS with the ISS and SP initiatives. However, organisations are still striving to develop an all-encompassing strategic framework that can accommodate the external environment, stakeholders, and internal business planning arrangements to gain competitive advantage (Ward and Griffiths, 1997). In this context, the use of technology is increasingly being cited as a primary input to strategy, particularly in terms of its potential to change or „open up‟ new potential strategies for exploitation. This requires an in-depth understanding into the use and application of IT, and how this can be used to support and deliver the key business requirements.
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3.0 Use of IT in Construction
IT in construction is continually being used to support and deliver the BS (Betts et al, 1991; Betts, 1992; Ahmad et al, 1995; Venegas and Alarcón, 1997; Andresen, 2000). In this context, IT capability can be a valuable tool for meeting business goals (Rockart et al, 1996), but this requires appropriately trained and skilled workforce to deliver this capability (Samler, 1993; Heng1, 1996; Moreton and Chester, 1997; Kumaraswamy, 1997; Ward and Griffiths, 1997; Goulding1 and Alshawi, 1999). Organisations should therefore ensure they have the appropriate skills (Maloney, 1997; Reiblein and Symons 1997; Gratton et al, 1996) to meet their IT requirements. This section reviews the available literature concerning the concepts and issues associated with using IT in a business environment. It uses construction industry research material as the main source of reference information, supplemented by cross-industry data as appropriate. It embraces: investment in IT; IT strategy; IT training in construction; IT training needs analysis; organisational learning; training plans; and training evaluation techniques. The main aim of this section is therefore to identify the principal requirements and drivers of IT in the business environment, specifically to determine the priorities and impact of IT on the BS. This undertaking is important to help appreciate and understand the relationship of IT training on the procurement and delivery of strategy.
3.1 IT in Construction
The construction industry has witnessed unprecedented levels of technological change, the dynamism and rate of which is growing at an ever-increasing pace (Betts et al, 1991; Betts and Wood-Harper, 1994; Hinks et al, 1997; Aouad2 et al, 1999). This situation is still evolving, especially concerning developments in web technology with electronic commerce (E-Commerce), through to advanced communication capabilities associated with mobile phones and the advent of wireless application protocol (WAP) technology e.g. Bluetooth and WiFi. In this context, there is a much greater need to manage this technology, especially where these developments can be proven to fundamentally support the core business process (Ward and Griffiths, 1997). Two major issues need to be considered concerning the use of IT in construction. The first of these issues relates to the technology itself, specifically how this can be used (and evaluated) to support the business. This should consider all aspects of this technology, from the initial acquisition costs, through to an assessment of expected benefits and impact on the BS. The second of these issues concerns the implementation factors associated with this technology, which should take into account all aspects (and consequences) of introducing technology into the business environment – including matters relating to time constraints, through to training requirements and effects of organisational culture. Relationship of IT to Corporate Effectiveness Within the construction industry, many organisations are increasingly using IT to support their BS, evidenced by Andresen (2000); Ahmad et al (1995); Betts et al (1991); Betts (1992); Jarrett et al (1997); Venegas and Alarcón (1997); Tan (1996). This support often extends to include a number of areas, ranging from its functional role in delivering operational needs, through its supportive role in furnishing management needs (or its ability to deliver strategic advantage opportunities at an executive level). It is therefore fundamentally important to decide upon an „acceptable‟ ratio of IT to deliver these needs, conscious of the BS requirements and overall corporate vision. This process should therefore try to assess and balance a range of critical issues needed to ensure a stasis of equilibrium is achieved between the corporate efforts required to ensure IT benefits are realised (against the factors of IT that often hinder or limit success). This balance often includes many issues, including: capital expenditure; resource requirements; prevailing organisational culture; company vision; and IT training requirements – the representation of which is shown in Figure 3.1.
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Information Technology
(Investment, Resources,
Culture, Vision,
IT Training)
Effectiveness
Corporate Energy
(Time & Effort)
Figure 3.1 Relationship and Balance of Corporate Energy to IT Effectiveness
Managers must therefore try to determine the exact nature, scope and influence these variables might
have on success. For example, organisational culture is a variable that often consumes a considerable
amount of corporate time and effort to ensure attitudes and opinions are in accordance with the
aspirations of the business. If insufficient energy is not placed in this area, this may alter the balance
of equilibrium, the resultant of which could influence the effectiveness of any IT initiative. The same
can be said for all other areas, including IT training – as failure to invest corporate energy in securing
appropriate training for employees can also influence overall effectiveness (Ahmad et al, 1995).
It is therefore important, that the scope and purpose of any IT investment is fully justified (in business
terms) and that all issues are carefully assessed and evaluated before any resources are expended.
This analysis should not only include the provision for operational, managerial and executive needs,
but should also include appropriate consideration of other factors – most notably the impact and
influence of change, as this driver can often affect the direction and focus of future business activities.
Investment Benefits of IT
Organisations invest in IT for a variety of different reasons, some of which include the aspiration to
improve competitiveness or to maintain market share (Tan, 1996); others strive to create strategic
advantage (Betts et al, 1991; Betts, 1992); or deliver IT capability (Rockart et al, 1996). Investment
therefore, not only includes the fiscal aspects, it also embraces the corporate time and energy
(identified in Figure 3.1) needed to ensure the anticipated benefits are realised. However, the current
rate and pace of change associated with IT developments often make it difficult to budget capital
expenditure against current and future needs. In this context, some companies often try and attempt to
control these costs by outsourcing their IT requirements (Lacity et al, 1995). Whilst this may prove
advantageous in some instances, this approach requires careful consideration, as this may not always
be a panacea solution for all organisations (Ward and Griffiths, 1997).
Investment in IT can often attract risk, most notably with technological uncertainty and/or market
uncertainty (Mata et al, 1995). Technological uncertainty encompasses the paradigm that investment
may not meet the anticipated performance targets, whereas market uncertainty, includes the risks
associated with changing market conditions. Organisations should therefore make provisions to plan
and manage this risk. This dilemma has always been a primary concern of budget holders, particularly
from a performance perspective (King and McAulay, 1997). Performance however is only one aspect
of the investment equation, and many other factors need to be considered to determine overall „value‟.
Numerous attempts have been made to ascertain the true „value‟ of IT, but no all-encompassing
solution seems to exist that can be used to determine, quantify or measure this (Glazer, 1993).
Notwithstanding this difficulty, any investment in IT must be fully justifiable, the process of which
should embrace all resource requirements – from disruption of the work process (Kröll, 1997), through
to costs associated with managing cultural aversion, and expenditure requirements for training and
implementation matters.
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Allocating resources to IT can therefore be very difficult to justify (Heng1, 1996; Giaglis et al, 1999), especially where benefits or improvements are intangible and unable to be measured. In this situation, a range of formal/informal capital investment appraisal techniques (CIAT) or return on investment (ROI) models are available to evaluate IT investment. These procedures are able to incorporate many issues (Andresen, 2000; Wateridge, 1998), but a note of caution needs to be exercised, as in some cases benefits can often be overstated to gain investment approval (Ward et al, 1995). The use of these techniques for the process of determining and measuring business performance (from strictly an IT perspective) can also prove contentious (Venkatraman and Ramanujian, 1986), especially if the financial aspects of IT are analysed exclusively, and not with any other „value-adding‟ merits. There is however, some concern regarding the use and application of CIATs in a business context, the main area of difficulty concerns their overall practicality and suitability to the task. Some of these techniques are often inappropriate, expensive, and/or difficult to understand and implement; requiring a trade-off between complexity and practicability – to derive any meaningful results (Farbey et al, 1992). Furthermore, Tan (1996), noted that empirical results generated by some of these models tended to be insignificant and inconclusive, perhaps being influenced by the time lag between the initial IT investment and obtaining the results. In summary, there are certain difficulties associated with CIATs regarding IT investments, which is often exacerbated by a general lack of consensus and consistency of approach (Ward and Griffiths, 1997). This is echoed in the construction industry (Andresen, 2000), but as evaluation is such an important process, it should not therefore be overlooked (Ballantine and Stray, 1998). Resources should however be justified, the process of which needs to accommodate all costs associated with IT, from the initial acquisition costs, through to the provision of IT training (Sakaguchi and Dibrell, 1998). Determination of Priorities and Impact of Change The increased use of IT in the construction industry places even greater demand on corporate resources. Resources are often finite, and have to be managed and prioritised to areas deemed to have the greatest impact on the business. Therefore, the process of allocating resources (and setting priorities) is an important part of BS formulation; but getting the right balance of expenditure to IT can often be difficult to achieve (Broadbent and Weill, 1997). As a starting point for discussion, Nolan (1979), offered a model that identified the evolving role of IS/IT and link to expenditure, but this does not provide sufficient insight into the precise areas for targeting resources to gain maximum „value‟ (Ward and Griffiths, 1997). The process of determining priorities for resource allocation normally takes place at boardroom level, the main goal of which aims to target corporate resources to key BS objectives and deliverables. One of the key discussion points in determining priorities is to ascertain the exact impact these resources are expected to deliver. This requires an in-depth investigation into the precise nature of the business needs (from an IS/IT perspective), which should therefore focus on the company‟s present position to its desired position. This analysis should clearly identify the critical timescales involved, associated risks, and implications of any change initiatives (planned or expected).
The impact of change can often embrace many areas of a business, the remit of which naturally encompasses both the internal and external environment. It is important therefore that organisations have the ability and capacity to manage (and respond to) change to prevent these issues compromising the BS. The degree of change needed should therefore consider the pressing internal and external needs and their relative importance to delivering BS goals. Furthermore, Alshawi (2000) noted that change could be managed on a gradual or continuous basis (which is relatively low-risk), or through a quantum leap approach (which attracts a much higher degree of risk). Strategies for managing this transition must therefore not only contemplate the level of immediate risk, but also the effects change can have on the organisation. For example, the efficiency and capability of core business processes might be compromised if change is not appropriately managed, as the degree (and rate) of change is inextricably linked to organisational capacity. This capacity naturally embraces
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the organisational infrastructure, its business processes and corresponding skill base. HRM issues are therefore fundamentally important to the success of any change initiative, the process of which particularly concerns the management of culture and the provision of training to meet BS needs.
3.2 Strategic Use of IT
IT is widely used in the construction industry, but very few companies use this technology strategically (or to its full potential). This is possibly influenced by a general lack of knowledge in IS and IT developments at management level, as only at this level of seniority are strategic and resource issues discussed in any detail. The definition of the term „strategic‟ however, can be considered as “the exploitation and alignment of IS/IT capability …to deliver the maximum possible benefit to the business” (Ward and Griffiths, 1997). Betts et al (1991), noted that managers should be made aware of all issues concerning the use and application of IT, before strategic exploitation can occur. This position was echoed by Drejer (1996), who additionally noted that managers should also consider the integration of technology into the strategic management process. The use of IT on its own is not a source of competitive advantage, but the strategic use of IT can allow companies to stay competitive (Glazer, 1993; Bryson and Currie, 1995). The process of securing strategic advantage however, requires many major management initiatives to be implemented (Rockart et al, 1996), not least the process of assessing current capability of services, to determine the IT and business maxims needed to facilitate this process (Broadbent and Weill, 1997). Technology should therefore focus on aspects of strategic significance (Rockart and Scott-Morton, 1984), as systems and technology that do not support the business could constrain organisational development (Betts, 1992). This mandate requires organisations to have the appropriate management processes in place to deliver these benefits (Ward et al, 1995). The process of identifying the strategic potential of IT in a construction environment must (as a precursor) consider all internal and external factors and drivers that could influence success. This deliberation should include the implications and effects IT implementation could have on the current and future organisational systems, procedures and processes – which naturally embraces the HRM infrastructure. Therefore, to maximise the strategic potential of IT, organisations must try to re-focus and/or reengineer some/all of their business processes to meet CSF imperatives (Ward and Griffiths, 1997). These measures might however change the way companies conduct their business, and could influence process maturation (the details of which are discussed in Chapter Four). In summary, research by Betts et al, (1991); Betts, (1992); Barrett et al, 1995; Venegas and Alarcón, (1997); Tan, (1996); Rockart et al, (1996); Sarshar1 et al, (1999), all indicate that IT can offer many strategic advantages, facilitate new ways of managing work, and develop new business opportunities. Whilst these strategic issues are important considerations, it is equally important to consider the key operational and support issues of the ITS (Ward and Griffiths, 1997).
3.3 The IT Strategy
The ITS is a highly detailed and structured framework designed to deliver the IS needs of an organisation using IT as the primary enabler. The composition and structure of the ITS is therefore predominantly activity based, supply oriented, and technology driven. Leavitt and Whistler (1958), were the main pioneers instrumental in the acknowledgement of a need to develop strategies to manage IT. Their seminal work predicted computer-based systems would centralise information and decision-making power, and have a significant impact on organisational structure and performance. They were the first researchers to identify and describe „information technology‟ in the following context: “… the combination of computer processing… mathematical programming, … operations research… and the mechanized simulation of thought processes”. Later developments in ITS formulation mirrored the advancement of technology and movements in strategic planning. ITS development issues have been discussed by many authors, most notably by Porter (1979; 1985), through to Hammer and Champy (1993) and Ward and Griffiths (1997).
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Relationship between the IT Strategy and the Business Strategy Managing technology is crucial, particularly its relationship with the BS (Drejer, 1996). It is therefore fundamentally important to be able to understand the relationships between the BS, ISS and ITS (Earl et al, 1988, Ward et al, 1995, Ward and Griffiths, 1997) for optimisation, integration and alignment purposes. This was further emphasised by Samler (1993), who noted that senior managers and IT directors often needed to „bridge the gap‟ between their IS and core business imperatives, the findings of which were reinforced by Lee et al, (1995), stressing the importance of organisational integration in this process. Within the construction environment, the ITS is therefore used to deliver a range of strategic, operational and support needs, ranging from simple data handling, through to complex decision-making functions. Success therefore depends on good access and control of this information (Abudayyeh and Rasdorf, 1991), the result of which can enable IT capabilities to be better focussed and integrated with the BS needs (Betts, 1991) and provide enhanced opportunities for integration (Ahmad et al, 1995). In this context, understanding the exact nature and composition of these needs can affect how the IT strategy is shaped, understood and accepted by the organisation (Mockler and Dologite, 1995). Strategies for implementing IT solutions into the workplace need careful consideration (Korac-Boisvert and Kouzmin, 1995), the procedure of which can often be managed through the ITS. The ITS is therefore used to support and deliver the strategic, operational and support needs identified from the BS. In this context, the ITS must have an appropriate infrastructure to facilitate and deliver all current (and future) IS needs, which can be derived from a „needs analysis‟ exercise (Bowmar et al, 2000; Ward and Griffiths, 1997). The ITS must however be linked and aligned to the BS to deliver these outcomes (Rockart et al, 1996; Burn, 1996; Ward and Griffiths, 1997). Alignment Issues Mangers often prepare their BS not knowing the true value and capability of the ISS and ITS, and how this relationship can be maximised to improve performance (Robson, 1997). The BS should therefore be underpinned by the ISS, which in turn should be supported by the ITS. This procedure requires the alignment of needs to meet these demands (Ward and Griffiths, 1997), the relationship of which is shown in Figure 3.2. This alignment process can be used to improve organisational efficiency by directly integrating with the corporate, strategic and operational needs – to ensure IT resources are „in line‟ with business imperatives (Galliers and Sutherland, 1991). This can be further enhanced by developing the ISS and ITS in unison (to maximise these alignment opportunities). The alignment process identified in Figure 3.2 was extended by Ward and Griffiths (1997) to identify (in more detail) the interrelationships and needs of the BS, ISS and ITS, the representation of which is shown in Figure 3.3. This model demonstrates the importance of making the ISS business-based (geared to BS deliverables), and supported by the ITS. Thus, the impact of the ISS and ITS can be directly assessed from a BS perspective to identify the infrastructure and services needed to deliver the key business process enablers. From strictly an ITS perspective, Ward and Griffiths‟ model identifies the importance of delivering the needs of the ISS through the ITS support infrastructure.
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IS Strategy
IT Strategy
Demands
Business Strategy
Alignment
Alignment
Demands
Alignment
Alignment
Figure 3.2 Alignment of the IS and IT Strategy to the Business Strategy
Managers should therefore endeavour to assess the capability of their current services to determine
the IT and business maxims needed; and either clarify the gaps between what exists and what is
desired, or find a reasonable match between the actual and desired capabilities (Broadbent and Weill,
1997). This often requires the adoption of new management strategies to achieve this (Korac-Boisvert
and Kouzmin, 1995) or could mean radically changing the company‟s BS, IT platforms, or
arrangements to deliver IS services (Feeny and Willcocks, 1998).
The main issue however, is to consider the precise impact of the ITS on the business; particularly, how
it is shaped, understood and accepted by the organisation (Mockler and Dologite, 1995), and how it
can be supported by IT training.
Problem Exercise
Why is it important to align the BS with the ISS and ITS?
Discuss your thoughts about this exercise with your co-students and the module tutor using
the online discussion board and weekly tutorials.
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IS Strategy
Business Based
Demand Oriented
Application Focused
IT Strategy
Activity Based
Supply Oriented
Technology Focused
Supports
Business
Direction of the
Business
Business Strategy
Business Decisions
Objectives and
Direction
Change
Infrastructure
and Services
Needs and
Priorities
IS/IT
Impact
and
Potential
Where the
Business is
Going and Why
What is
Required
How it Can be
Delivered
Figure 3.3 Business, IS and IT Relationship Model (Ward and Griffiths, 1997)
Problem Exercise
What would happen if the BS, ISS and ITS were out of alignment?
Discuss your thoughts about this exercise with your co-students and the module tutor using
the online discussion board and weekly tutorials.
4.0 IT Training
The construction industry has witnessed a steady increase in the scope and complexity of IT systems
and applications, attracting interest from numerous parties – possibly encouraged by its strategic
capabilities (Ahmad et al, 1995; Betts and Wood-Harper, 1994; Goodman and Chinowsky, 1997;
Heng2, 1996). Furthermore, the use of IT is increasingly being discussed in construction boardroom
strategy meetings, the acknowledgement of which is testament to the level of importance placed on
delivering operational, managerial and strategic goals. Managers now appreciate that understanding
IT capability can help to deliver core capability (Feeny and Willcocks, 1998).
Implementing IS and IT strategies into an organisation often involves change, which frequently
requires end-user training to provide the appropriate skills needed to deliver these changes (Moreton
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and Chester, 1997). This should also include the emergent HRM strategies in this process (Maloney, 1997), in this way, the appropriateness of the corporate skill base can be adjusted through the HRM policy either directly (by recruiting the skills externally) or indirectly (by training the existing personnel to acquire new skills). Managers must therefore appreciate the importance of training, and its relationship with the BS, as: “…without change in human knowledge, skills and behavior…changes in technology, processes and structures are unlikely to yield long-term benefits” (Cooper and Markus, 1995). In a construction environment therefore, it is essential that IT skills and competence are developed to use this technology appropriately and effectively (Ahmad et al, 1995). Training is a management tool and instrument for addressing skill deficiencies. It therefore aims to adapt employee qualifications to job requirements (Krogt and Warmerdam, 1997), and can also act as a conduit for linking organisational strategies and goals (Sleezer, 1993). This procedure should however be integrated with the long-term needs of the company (Kumaraswamy, 1997). Within the construction industry, training has often been linked to improved levels of performance (Chang and Cox, 1995; Naoum and Hackman, 1996; Kumaraswamy, 1997), but more fundamentally, it can also be used to address critical weaknesses, improve the transfer of skills and knowledge, and help develop a common culture within the organisation. Furthermore, it can facilitate and provide a change in organisational behaviour, which can often enhance an organisation‟s capability to survive (Kessels and Harrison, 1998). IT Training is therefore a fundamental part of the business decision-making process, the infrastructure of which requires integrating and aligning to the BS needs. This requires the IT training strategy to be structured and tailored to meet specific objectives, and therefore embraces a number of issues – from a desire to improve overall skill levels (to increase efficiency), through to gaining specialist IT skills (to gain strategic advantage). In this context, “…companies need to spend more resources to train employees in the use of individual IT applications, but they also have to develop a longer-term plan to educate users and managers about the capabilities and opportunities of this technology” (Breuer and Fischer, 1994). It is therefore imperative that construction organisations “…reformulate their recruitment policies, performance appraisal procedures and education and training activities to benefit from these IT capabilities” (Ahmad et al, 1995). This requires a deep understanding into how IT training can contribute to the successful delivery of the BS needs.
4.1 IT Training and the Business Strategy
The BS should not only be used to provide strategic direction (Morgan, 1990), it should also try to match opportunity with corporate capability (Andrews, 1987). Therefore, corporate energies and resources are increasingly being focussed on the concepts and principles of „learning‟ and the „learning organisation‟ to help deliver the BS (Huber, 1991; Kim, 1993; Stacey, 1993). More specifically, as IT has continually demonstrated its role as a core tool and enabler of strategy (Ward and Griffiths, 1997; Robson, 1997; Rockart et al, 1996), the impact and value of IT training with the concepts of organisational learning promises additional opportunities. However, before the relationship of IT training to the BS can be discussed, it is important to identify some of the main factors that often influence the performance of organisations. The BS can be adversely affected by many factors, the three main issues of which tend to encompass resources (availability, appropriateness etc.), organisational culture, and skills (matched to the needs of the BS), the relationship of which is shown in Figure 4.1. In reality however, many other factors influence organisational success – from corporate leadership, through to knowledge of market forces and level of process understanding.
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Figure 4.1 Key Issues Contributing to the Success of the BS Managers should therefore endeavour to acknowledge (and understand) how these issues affect the organisation – to examine the exact role and contribution each of these factors can have on the BS, as optimal performance can be influenced by how well these issues are understood. For example, should resources and corporate energy be spent improving organisational culture and commitment?, or should they be directed towards the provision of training?, or perhaps buying some new equipment?. Depending upon the organisation, these needs will vary quite considerably, but the overall rationale should aim to prioritise these needs commensurate to their expected contribution to securing BS success. From a skills perspective, understanding how skills contribute to the successful delivery of the BS is also fundamentally important, as corporate skills are needed to deliver the BS; and in this context, training can greatly influence the operation of the core business – often leading to improved business performance (Raghuram, 1994; Mata et al, 1995). However, within the construction industry, advances in IT have continued to place considerable demands on personnel (Heng1, 1996; Warszawski, 1996), but the needs of which have not been given the appropriate level of support (Atkin, 1987). This may be due to imposed financial constraints, or could be influenced by the organisation‟s inability to perceive the criticality of IT training to the BS (Philip et al, 1995; Ward and Griffiths, 1997). IT training can however contribute to (and support) the business process (Rockart et al 1996; Barua and Ravindran, 1996). Training should therefore be prioritised to IT tasks deemed critical to the support (and delivery) of the BS objectives (Robson, 1997; Ward and Griffiths, 1997). This requires an in-depth understanding into the precise nature of all IT needs required to deliver the BS. For simplicity, these can be categorised into three main areas, specifically: operational, managerial and strategic needs (Goulding and Alshawi, 1997; 2002) – the relationship of which is shown in Figure 4.2.
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Business Strategy
Executive
Needs
Skills Assessment & Prioritisation
IT Training Strategy
Company
Log (All
Training
Needs)
Trained Personnel
Trained Personnel
Managerial
Needs
Operational
Needs
Figure 4.2 Relationship of the Business Strategy to the IT Training Strategy
These needs should therefore be assessed and prioritised according to their perceived level of
importance to the delivery of the BS, the details of which are entered into a company log for
subsequent delivery through the IT Training Strategy (ITTS). At this point however, it is necessary to
determine the generic IT training needs (common to all users) and specific IT training needs (required
by the specialist users).
In conclusion, IT training can provide the appropriate skills needed to support and deliver the BS
needs. However, this requires an in-depth understanding into the precise nature of skills needed, and
the factors that can often influence (or hinder) success.
Problem Exercise
Why are IT skills needed in construction?
Discuss your thoughts about this exercise with your co-students and the module tutor using
the online discussion board and weekly tutorials.
4.2 IT Training Resource Requirements
Training should not be undertaken on an ad hoc or piecemeal basis, it requires a carefully considered
and structured approach to map all needs (executive, managerial and operational) into a coherent and
flexible training policy linked to key BS deliverables and process enablers. Therefore, the procedure of
providing training can often consume a considerable amount of organisational resources; from the
outline conceptualisation of the need, through to the efforts extended to designing, implementing and
evaluating training outcomes.
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Construction organisations should decide on the most appropriate and effective way of providing training to address deficiencies in their IT skill base. This is normally achieved by one of three options – namely: buying in new skills, training existing staff, or a combination of both these options. All have relative merits and demerits, but the amount of resources they consume will depend upon a number of issues, ranging from the availability on in-house training expertise, through to factors associated with the rate of technology transfer, and degree of cultural aversion (Geber, 1994; Ingram and Baum, 1997; Subramanian and Lacity, 1997). However, most organisations do not have sufficient resources to address all their training needs (Sleezer, 1993), and if this situation prevails, it is necessary to assess and prioritise training into „essential‟ needs (core strategic and support needs) and „desirable‟ needs (those that add benefit, but may not directly contribute to the BS CSFs). In contrast, there is a school of thought that suggests that training should not only be used to address skills gaps, it can also be used to manage social and moral obligations (Scarborough, 1997); as the importance of social relations, and the expertise needed to empower the adoption of new concepts, rely heavily upon the distribution of knowledge to employees. However, securing resources for IT training is not always easy (Philip et al, 1995), the difficulty of which is often exacerbated by the fact that the total costs involved with IT training are very difficult to quantify and almost always underestimated (Robson, 1997). This parody not only includes the initial physical training costs, but also extends to include the time „lost‟ whilst employees are being trained. It is therefore fundamentally important to try and determine the exact nature, scope and magnitude of all resources needed, as it often becomes necessary to prioritise these to areas perceived to have the greatest impact on business performance. These priorities can be determined using a needs analysis approach.
4.3 IT Training Needs Analysis
The IT needs analysis exercise is a procedure used for determining the exact skills and competence needed to deliver the BS objectives. This process is undertaken primarily using a skills audit to identify the organisational training requirements, the details of which are then assessed, prioritised, and placed in a company log (or skills database). This log acts as a repository of knowledge, and is used specifically to determine the type and level of skills held in the company; which can be later matched against the skills needed (the skills gap) to identify the type, level and amount of training required. Furthermore, the skills log can also be linked to the HRM strategy, to ensure that the balance of skills to business need is optimally aligned. The process of determining the exact nature and scope of IT training needs is however often complicated by the diversity, structure and dynamics of organisations. For example, within the construction industry, large organisations are often subdivided into smaller groups or subsidiaries (and these may also be even further subdivided into sections or divisions). The rationale of which is often adopted to focus on specialist core operations, or to penetrate niche markets; for example: Design and Build operations, Engineering Services, Civil Engineering, Contracting; Housing etc. This arrangement is shown in Figure 4.3. The internal structure of an organisation can therefore make it difficult for assessors to gain an overall holistic understanding of the corporate skills held; especially where a high prevalence of organisational subcultures exist, or where large numbers of employees are present.
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G
G
G
S
S
S
S
S
Group
(or Subsidiary)
Section
(or Division)
within Group
Parent
(or Holding)
Company
Figure 4.3 Large Construction Organisational Infrastructure
The representation identified in Figure 4.3 distinguishes an organisation containing three discreet
groups, each one of which contains a series of sections (or divisions). From an IT training needs
analysis perspective, the skills audit must therefore include all these areas. However, the dilemma
facing managers is that in some cases, groups may be allowed to operate independently from the
holding company, which can affect the way in which training resources are allocated. Notwithstanding
this difficulty, the process of determining IT training needs should enable managers to assess (and
prioritise) skills to BS needs; and in this context, corporate strengths can be capitalised upon, but
more importantly, weaknesses can be addressed.
The needs assessment exercise is therefore used to categorise the explicit IT skills required at the
corporate, group, and section level. This is achieved by identifying the executive, managerial and
operational needs in each of these areas, shown in Figure 4.4. For example, the executive needs
normally embraces the strategic use of IT; whereas the managerial requirements tends to focus on the
coordination and delivery of key objectives; and the operational often concentrates on the functional
task-dependent IT requirements.
S
G
C
Section
Needs
Group
Needs
Corporate
Needs
Executive
Managerial
Operational
Figure 4.4 Determination of IT Skills - Elicitation of Needs
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At this point however, it is important to differentiate between the terms „education‟ and „training‟, as
from a skills development perspective, these have often been a source of some confusion between
practitioners. For clarity therefore, a succinct definition is offered by Peel (1984), who noted that;
“education improves knowledge, whereas training improves skill”. The process of providing training is
thus a method of improving the skills needed to satisfy the BS needs. The needs analysis process
should therefore reconcile all individual, task and organisational goals (Leat and Lovell, 1997; Mata et
al, 1995), balanced against the corporate requirements and personal needs (McCuen, 1998; Griggs,
1997; Hamel, 1991). Awareness of these issues is essential for control (Jones and Robinson, 1997),
and it is therefore fundamentally important that all these issues are ameliorated into one coherent
ITTS. The composition of the ITTS should consequently include all the IT training needs – from a
corporate and group perspective, through to the individual and personal needs.
Corporate and Group Needs
Many large construction organisations are often divided (and subdivided) into groups or subsidiaries
for logistical or operational reasons. The majority of which however tend to operate under the overall
control of one parent (or holding) company. In some cases, companies are given complete autonomy
from the holding company, the procedure of which enables them to set group-specific business
strategies independent of the parent company‟s BS. This provision can allow a greater degree of
flexibility to exploit niche markets, without the necessary burden of being tied into the parent
company‟s BS and corporate infrastructure. In most cases however, the parent company will have a
corporate BS that will need to be satisfied by the collective actions of the separate groups‟ activities,
as shown in Figure 4.5.
Parent Company's BS
Group 'C'
Group's BS
Group 'A'
Group 'B'
Area of the BS
which is
common to all
Groups
[GENERIC]
Area of the Group's
BS which is outside
the Company's BS
[SPECIFIC]
WHERE:
Figure 4.5 Parent and Group BS Interrelationship
Figure 4.5 identifies three separate groups, specifically: Group „A‟, Group ‟B‟ and Group „C‟. Each of
these groups has a separate BS, the remit and extent of which is represented by a solid-line circle,
and the parent company‟s BS is represented by a dashed-line circle. In this representation, the
collective BS‟s of each of these three groups can be seen to fulfil the parent company‟s BS, and some
degree of overlap with strategies exist.
It is also evident from Figure 4.5 that an area of commonality is present in the central core, where all
three of the group‟s BS strategies overlap. In this area, the remits of each of the respective group‟s BS
can be considered similar to each other (or identical), and can be thus termed „generic‟ (common to
all). The skills needed in this middle core therefore, presupposes (and assumes) a high degree of
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commonality exists regarding the skills needed to perform each BS. Furthermore, it also follows that if
these skills are similar, then the IT training needs would also be of a very similar nature. Conversely
however, the section of a group‟s BS that does not overlap with any of the other groups‟ BS, can be
said to be unique to that group (and therefore specific). This means that this portion of the BS can be
termed „specific‟, as little (or no) commonality exists in the BS (or subsequent training requirements).
The advantages of using generic IS and IT strategies have been well documented (Ward and Griffiths,
1997; Robson, 1997), the approach of which can equally be applied to IT training – leading to
improved integration and communication of core activities. From a corporate ITTS perspective
therefore, overlaps in business strategies (with the prevalence of a high degree of commonality), can
mean that all duplicated efforts could be rationalised into one corporate generic ITTS (with the specific
IT training needs being delivered separately), an example of which is shown in Figure 4.6. The
representation of which however, presupposes the skills needed in each of the identified groups are
ostensibly of a similar nature (and level).
Group 'A' Group 'B' Group 'C'
Additional Group
IT Training Needs
[SPECIFIC]
Corporate IT
Training
Provision
[GENERIC]
Generic IT Training
Provided at
Corporate Level
Training Required
Figure 4.6 Specific and Generic IT Training Provision
From a corporate perspective, the first step in creating a generic ITTS requires executives to fully
appreciate the scope and nature of operations at group level. This can be achieved using a simple
function-responsibility matrix, an example of which is shown in Table 4.1.
This matrix enables the key (core) IS needs to be determined for all groups within the parent
company; the data from which can then be supplemented by a full skills audit, to determine the precise
type and level of training needs required.
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Bidding Strategy Formulation
Marketing
Tender Adjudication
Estimating
Planning
Purchasing
Quantity Surveying
Contracts Management
Personnel Management
Accounting
Administration
Managing Director
Group Managers
Estimators
Planners
Buyers
Quantity Surveyors
Contracts Manager
Project Managers
Personnel Officer
Accountants
Company Secretaries
Clerk/Typists
RESPONSIBILITY
FUNCTION
Table 4.1 Function-Responsibility Matrix
Executive, Managerial and Operational Needs
Organisations often have to balance a range of skills and competence to meet business needs
(Andrews, 1987; Mintzberg and Quinn, 1991). These requirements tend to be fulfilled by roles, the
denotation and classification of which generally incorporates levels of seniority and responsibility. For
simplicity, there are three main role categories used in a business environment, referred to as
executive, managerial and operational.
From an IT training perspective, executive needs often tend to focus on strategic issues, which usually
encompass developments in IT capability. This type of training usually includes issues concerning
strategic information (management information systems; decision support systems; executive
information systems; strategic management information systems etc.), including finance (E-commerce;
account portfolio packages etc.). From a management perspective, the IT training needs also tends to
reflect some of the executive needs, but these are often more general in nature, focussing on controlrelated
activities. Typical needs for example encompass developments in project management (and
planning software), the world-wide-web (WWW), and electronic data interchange (EDI). Operational IT
training needs however are often more functional by nature, and tend to focus on mainstream IS
requirements. Conventional needs therefore, often converge on data processing (DP) issues
regarding application specific software, such as word processing, spreadsheets, and electronic mail
(E-mail). Whilst there will be some obvious differences in the type and level of IT training required for
each of these categories, there is also usually some area of commonality, most notably in the use of
mainstream packages – such as word processing and E-mail applications. It is therefore important to
determine the exact nature, level and type of skills needed for each of these categories in context to
the corporate deliverables. These should be assessed, co-ordinated, and prioritised according to their
level of operational and strategic importance, the process of which can be achieved using a simple
needs audit (an example of which is shown in Table 4.2).
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Manager 1 (Group A)
Manager 2 (Group A)
Manager 3 (Group A)
Manager 1 (Group B)
Manager 2 (Group B)
Manager 3 (Group B)
Manager 1 (Group C)
Manager 2 (Group C)
Manager 3 (Group C)
EIS/MIS Software
Accounting Software
Bidding Software
Bespoke Software
Word Processing Software
Spreadsheet Software
Internet/E-mail
IT Training Need
Manager & Group
Cluster
of
needs
Table 4.2 Managerial IT Needs Matrix
The needs analysis process is normally undertaken using a simple questionnaire, or a series of short
tests to determine the prevailing skills levels and corresponding level of training required. Clusters of
needs can therefore be readily identified from this matrix, enabling resources to be more effectively
targeted to meet the IT skills most in demand (albeit conscious of the BS needs and allocated
priorities).
Individual Needs
Individual IT training needs are usually quite fundamentally different from the mainstream generic and
specific training provision required at corporate and group level. These needs are generally highly
personal, and therefore difficult to justify from a business perspective (Krogt and Warmerdam 1997).
However, whilst these needs may not directly benefit the organisation, line managers should
contemplate whether these issues could be incorporated into the wider context of the company‟s HRM
development plans, as this approach can often help secure commitment, which could improve
employee motivation (Feeny and Willcocks, 1998; McCuen, 1998; Neary and Yeomans, 1996).
Problem Exercise
Using your company as an example, identify the different types of IT skills needed in each section,
and how they contribute to the business strategy.
Discuss your thoughts about this exercise with your co-students and the module tutor using
the online discussion board and weekly tutorials.
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4.3 Barriers to Success
Training is a very powerful medium and a primary vehicle through which organisational change can be
delivered. From a skills perspective however, employees often find it difficult to accept they do not
have the skills required to perform their jobs because of change (Wijeyesekera, 1997), which can
cause organisational friction (Neary and Yeomans, 1996). Consequently, the introduction of new
technology in the workplace can often cause numerous problems if it is not carefully managed (Bohn,
1994), particularly where training is required (Heng1, 1996). Whilst it is generally accepted that
employees will often need to be trained (or re-trained) when new IS/IT strategies are deployed, this
may also mean that new roles and/or responsibilities are needed (Ross et al, 1996). These issues can
tend to cause barriers (and tension), which can have an impact on the overall success of training.
The effectiveness of training can often be influenced by three main factors, specifically: the
organisation, participants, and the training session. The organisational influence tends to embrace
issues of culture, support, commitment etc; whereas the participants‟ perspective embraces motivation
and relevance; and the training session can influence the type and quality of training provided (which
includes the proficiency and competence of the training providers and the teaching and learning
delivery methods used). This relationship is shown in Figure 4.7.
Training
Effectiveness
Organisation
Motivation
Support
Relevance
Skill/Competence
Type of Training
Quality of
Trainers
Level of Support
Physical Facilities
Culture
Attitude of Senior Staff
Business Objectives
Level of Support
Training
Participants
IT Training
Session
Figure 4.7 Factors Affecting Training Effectiveness
Figure 4.7 highlights the importance of securing commitment in all these areas. However, one of the
major factors that should be taken into consideration is that of organisational culture, as the subtleties
of which can embrace many issues, not least empowerment (which can affect employees‟ commitment
to training). Cultural aversion can engender mistrust, the intransigence of which often inhibits the
acceptance of technology and training. Managers must therefore try to ameliorate the diverse needs
and requirements of all parties, by extolling the benefits of change through training.
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Resource and Management Barriers IT Training can often consume a considerable amount of organisational resources, from the initial development of the ITTS, through to the costs involved in the subsequent implementation and evaluation process. These costs are almost always underestimated, as managers often fail to appreciate the full resource implications of designing and implementing IT training initiatives (Robson, 1997). From a resource perspective, resources are not always financial by nature, as these can also include other issues such as „time‟ and corporate „energy‟. Managers should therefore recognise the myriad of complexities that exist with training initiatives (Miles and Neale, 1997), and the subsequent impact they can have on resource allocation. Investment in training (financial or otherwise) often means that something else in the organisation has to be sacrificed (especially with limited resources); and in this context, it is generally seen as a marginal activity and one of the first things to be cut in difficult times (Harrison, 1996). One of the major barriers to the successful design and implementation of any ITTS is the organisation‟s prevailing management awareness and vision. Managers‟ decisions often directly (or indirectly) affect employees, and implementing change (through training) can cause many difficulties; not because people are resistant to change per se, but because of the way in which this change management process is managed. Furthermore, “… even the best intentions fail, not because of the ideas themselves, but as a result of way in which those ideas are shared with individuals” (Griggs, 1997). However, without change in human knowledge, skills and behaviour; change in technology, processes, and structures are unlikely to yield long-term benefits (Cooper and Markus, 1995). Managers should therefore appreciate that users often have a resistance to the implementation of IT in the workplace (Martinko et al, 1996; Earl et al, 1988), and that in some cases employees may never fully accept IT (Grindley, 1992). Therefore, the decision to implement IT-based solutions into an organisation, must evaluate the precise nature of the organisational environment in order to minimise risk (Dhillon and Backhouse, 1996). This deliberation should also encompass all human issues and the socio-political factors that could influence success (Powell and Dent-Micallef, 1997). Success therefore, requires managers to fully appreciate „change‟, the concept of which should embrace the appropriate motivational strategies needed to satisfy the distinct needs of all personnel (Hall, 1997). If managerial attitudes remain defiant and reluctant to embrace change, barriers will develop that could detrimentally affect the success of any organisational training initiative. Corporate Environment and Culture Culture often encompasses many different notions and meanings (Young, 1989), ranging from beliefs, language and ceremonial acts (Meyer, 1982), through to stories and perceptions. From an organisational perspective, it tends to encompass the internal and external environment, and therefore embodies the whole essence and driving force of an organisation. Corporate culture is thus often ingrained and very difficult to influence and change. It is affected by employees‟ deep-rooted values and beliefs, the nature and causes of which, can often have far reaching consequences (Johnson, 1992; Mockler and Dologite, 1995; Geletkanycz, 1997). The term „culture gap‟, is the difference between the values and perceptions held by one person, group, or subset; against the perceptions held by others (individuals, groups, or subsets). An example of which is to consider the views of management against operatives; each have different perceptions of culture, and of each other; but neither are able to identify why this gap exists, how wide it is, or how this gap can be closed. These fundamental differences therefore can often instil mistrust and create communication problems, particularly where no common agreement has been reached concerning social rules and protocol. Therefore, key cultural milestones or barriers must be addressed to maximise shared beliefs, and minimise any negative effects associated with misunderstanding. The process of resolving differences requires an in-depth understanding into the root causes of all preconceptions (Mockler and Dologite, 1995), which may also require organisational subcultures to be integrated, before any attempt is made to bridge the culture gap (Grindley, 1992; Peppard, 1995).
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From an IT perspective, culture can affect the success of any IT initiative (Grindley, 1992; Davis, 1993;
Taylor-Cummings, 1998), and cultural equilibrium (where all share the same perception) can only be
restored when IT becomes part of organisational culture (Earl et al, 1988). This can be achieved
through effective management intervention, but this requires acknowledgement that people by their
very nature are averse to change, and feel uncomfortable with issues that affect their social standing
and working practices (Johnson, 1992). Socialisation issues should therefore encompass the sharing
of norms – knowledge; skills and competence; continuous learning related to IT needs; cooperative
relationships with IT professionals; and commitment (Taylor-Cummings, 1998). Managers should
therefore look carefully how they recruit, manage, train and reward their staff to minimise these
difficulties (Tonks and Wan, 1991; Samler, 1993; Luoma, 2000).
Communication and training issues are therefore fundamentally important to organisational success
(Mockler and Dologite, 1995; Ward and Peppard, 1996), and whilst managers may not be able to
control culture, they can influence its evolution (Walsham, 1993). A congruence of shared values
should therefore be sought (Ward and Griffiths, 1997), which links all organisational personnel
together – forming a set of shared beliefs, perceptions and goals, directed towards one corporate
philosophy and vision (Gunning, 1996).
Problem Exercise
Identify the main issues of INDIVIDUAL culture within your organisation which you believe could
affect the performance of IT training.
Discuss your thoughts about this exercise with your co-students and the module tutor using
the online discussion board and weekly tutorials.
4.4 IT Training Strategy
Developing skills through training is fundamentally important for delivering business benefits (Ahmad
et al, 1995; Cooper and Markus, 1995; Rockart et al 1996). This process can help companies adapt to
changing environments by adjusting and aligning their skill base accordingly (Zucchi and Edwards,
1999; Gratton et al, 1999). This can be achieved through training, and (if linked to the core business
activity) can be used to create competitive advantage (Maloney, 1997). From an IT training
perspective, this requires organisations to have the appropriate skills and competence (Ward and
Griffiths, 1997) needed to deliver capability (Andrews, 1987); which within construction, requires
appropriate recruitment, education and training policies to be implemented (Ahmad et al, 1995).
Organisations should therefore endeavour to obtain and deploy highly skilled IS/IT resources to meet
BS objectives, the process of which requires the development of skills and competences to meet
these needs; which, according to Ward and Griffiths (1997) can be achieved in the following ways:
Training new recruits from school or university
Recruiting experienced staff from other organisations
Training non-IS personnel in application skills
Using external resources (on a long/short-term basis)
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These issues are expanded in Ward and Griffiths‟ (1997) matrix, which details four key quadrants, and
is shown in Figure 4.8. These quadrants highlight four areas where resources can be directed to
satisfy organisational needs, specifically: Key Operational, Support, Strategic, and High Potential.
Managers can use this matrix to determine the most appropriate use of resources. For example, one
option might be to „buy-in‟ specialist IT skills (in the high potential quadrant) to transfer this knowledge
through training into the strategic quadrant. Other options could include trying to secure long-term
capability by moving operational and support resources to the strategic and high potential quadrants.
STRATEGIC HIGH POTENTIAL
KEY OPERATIONAL SUPPORT
Train users in
application
based skills (use
own resources)
IS/IT
professionals
Buy in expert
help and transfer
knowledge
Train users in
exploitation of
package software
to displace IT
professionals
Technology
specialists
Users
Outsource to
release resources
Recruit and/or
train specialists
Users
Bureaus
Facilities Management
Contractors
Software development
Figure 4.8 Use of Resources (Ward and Griffiths, 1997)
The process of providing training should therefore be seen as a continuous process (Gilgeous, 1997),
the investment of which prepares organisations to adapt to the changing business environment
(O‟Connell, 1996). From an IT training perspective, the remit of the ITTS should thus focus explicitly
on the IT training requirements (which have been derived from the main training strategy). In this
context, the ITTS can be used to satisfy the core IS needs and deliver IT capability (Ward and
Griffiths, 1997). This however, requires the ITTS to be aligned with the ISS, ITS, BS and
organisational learning systems (Robson, 1997); and also requires gaps in skills (or performance) to
be identified and subsequently matched by the appropriate training required.
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4.5 Performance Gap Analysis
Skills can often take a long time to nurture (Klein et al, 1991), the development of which should thus be considered as a strategic issue (Doherty, 1997). Skills can help deliver the BS (Raghuram, 1994; Mata et al, 1995), and IT training can contribute to this process (Rockart et al 1996; Barua and Ravindran, 1996). From a performance perspective, understanding how IT skills contribute to the successful delivery of the BS is fundamentally important. This process should determine what IT skills or capabilities are required to bridge the gap between what is needed, against the present skill base (Van Daal et al, 1998; Goulding1 and Alshawi, 1999; Goulding2 and Alshawi, 1999). Consequently, the difference between the required performance level and the actual level is termed the „performance gap‟, as shown in Figure 4.9. Figure 4.9 Performance Gap Analysis (Goulding1 and Alshawi, 1999) The performance gap identified in Figure 4.9 identifies three skill categories, reflecting the operational, managerial, and executive levels. The dotted line indicates the current performance level for area „A‟, and the dashed line identifies the target level (to be achieved after training). Therefore, area „A‟ represents a skill level (or level of proficiency). Two performance gaps are identified – specifically, the „opportunity‟ gap, and the „optimal‟ gap. The opportunity gap represents the immediate shortfall in skills needed to meet performance expectations, whereas the optimal gap is the highest achievable skill level for that category. Target levels are set by the training manager for the operational, managerial, and executive levels, regarding the perceived impact and importance these skills could have on the BS; which in this representation indicates that the executives have the greatest opportunity gap to address. Performance analysis can therefore be used to help mangers analyse the scale and importance of performance gaps on the BS, the procedure of which can also be used to assess process effectiveness (Ward and Griffiths, 1997). Decisions can then be made to rectify performance deficiencies (or further improve skill levels) to maximise performance (Reiblein and Symons, 1997). The design, development, and implementation of the ITTS must therefore focus on the planned management of change, using gap analysis to measure performance achievement. In this context, corporate skills can then be „matched‟, „measured‟ and „evaluated‟ to targets – especially the contribution the ITTS makes to the delivery of BS CSFs.
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Skill and Competence Issues
The term „competence‟ can be used to define a particular level of skill, knowledge or observable
characteristic (Prahalad and Hamel, 1990), whereas skills are essentially an amalgamation of human
expertise and facilities, blended together by the organisation, processes, systems and culture (Klein et
al, 1998). Skill and competence levels are therefore crucial for delivering organisational success
(Drejer, 1996).
From a skills perspective, it is important to understand how skills are nurtured, developed and
influenced. Klein et al, (1998) noted that the development of skills was often affected by the
organisation, facilities and employees, and this relationship is shown in Figure 4.10. Deficiencies in
any of these three primary areas can therefore have the potential of affecting the development of skills
(which can affect overall performance).
SKILL
Organisation
(Processes, Culture & Systems)
Employees
(Expertise)
Facilities
(Technical Capabilities)
Figure 4.10 Corporate Skill Development Influences (Klein et al, 1998)
From a competence viewpoint, organisations should aim to build inventories of competence to meet
business requirements (Klein et al, 1991; Levinthal and March, 1993), as these can be used to create
product advantage (Hamel, 1991; Klein et al, 1998), especially when aligned to the BS (Ulrich, 1998).
The development of competence within organisations can also often provide access to a variety of
markets; contribute significantly to the perceived customer benefits; and be difficult for competitors to
imitate (Prahalad and Hamel, 1990). Organisations should therefore endeavour to match skill and
competence levels to corporate capability (Heng1, 1996; Moreton and Chester, 1997; Horwitz, 1999),
which from an IT skills perspective is fundamentally important (Maloney, 1997; Reiblein and Symons
1997; Ward and Griffiths, 1997).
Skills and competence levels can be elicited using a skills audit questionnaire, an example of which is
indicated in Table 4.3. In this example, four categories are presented (A1, A2, A3 and A4), and a
rating of 1 to 4 can be scored in each of these remits. This type of questionnaire can allow users (or
assessors) to determine the type and level of training needed for the skill categories identified. These
questionnaires should be completed by all organisational personnel, the results from which can then
be collated by the training manager for subsequent analysis.
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Please select values between 1 and 4 on the form below regarding your training requirements (1 = No Training: 2 = Some Training: 3 = Intermediate Training: 4 = Full Training) Category Description (Spreadsheets) 1 2 3 4
A1
Sort and categorise cost data
A2
Produce a graph from data
A3
Create external references to files
A4
Produce simple macros for manipulating data
Table 4.3 Skills Audit Questionnaire The skills audit questionnaires can be used to identify training needs and targets more effectively. Moreover, they can be used to highlight specific areas of need from a corporate perspective (where clusters of need are identified). These clusters are however better represented in the form of a histogram, an example of which is shown in Figure 4.11. This histogram identifies that the majority of personnel have chosen category „A3‟ as a particular area of weakness (which indicates that training should be provided). However, if this category was not considered „essential‟ to the delivery of the BS (or if training resources were limited), then training resources should be diverted to those areas deemed to have a greater impact on the BS (irrespective of the perceived need highlighted by the skill histogram). Figure 4.11 Histogram of Skill Requirements In summary, corporate skills should be aligned to meet the specific requirements of the BS (May, 1999), and the skills audit can be used to determine the current level of skills (and needs) of the company. This type of audit could also be used to identify and differentiate between generic and specific IT training needs; and Shirazi et al (1996) noted this demarcation was useful for providing core training (where generic needs exist) and specialist training (where specific needs exist).
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Problem Exercise
Identify the process of finding out what IT skills you have in your organisation, and whether you have
the „right‟ IT skills to compete in the market sector.
Discuss your thoughts about this exercise with your co-students and the module tutor using
the online discussion board and weekly tutorials.
Generic and Specific IT Training Needs
From an ITTS perspective, the executive, managerial, and operational needs should be addressed
using generic and specific IT training. This provision provides an opportunity to help direct resources
more effectively (Shirazi et al, 1996). For example, generic training sessions could be used to deliver
core IT training issues, such as the use of E-mail and Internet communication, basic software
packages, general awareness of IT capabilities etc; whereas specific training could be used to
address specialist needs, which could include EDI, specialist software etc. In large construction
organisations therefore, this approach could enable generic IT training to be provided by the holding
(parent) company, and any specific training needs could then be addressed at group level – an
arrangement of which is shown in Figure 4.12.
Figure 4.12 Generic and Specific IT Training Requirements
The generic and specific IT training arrangement indicated in Figure 4.12, identifies three groups for
discussion, specifically: Group „A‟, Group „B‟, Group „C‟, and Group „D‟. These groups all have a
particular need for IT training to support their BS, the level of which is identified by height of the
histogram. The shaded area highlights the level of generic training provided by the parent company.
By default therefore, any training requirements above this line can be classed as a „specific need‟.
Consequently, any group or subsidiary that relied heavily upon IT (or had the majority of its IT training
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classified as specific), would therefore need a higher proportion of group resources to fund their
training needs (as can be seen with group „D‟).
4.5 IT Training Strategy Development
The ITTS is derived from the main training strategy, the remit of which should focus on delivering the
appropriate IT skills and competence required to meet the business need. The formation of the ITTS
must therefore recognise that:
construction organisations operate in a rapidly changing environment (Betts et al, 1991), and the
ITTS will therefore have to accommodate change.
knowledge, skills and competence form the basis of organisational intellectual capital (Joia, 2000;
Mayo, 2000), and that IT training should be geared to meet current and future IT business
imperatives.
training needs are often variable, and the ITTS must therefore be capable of being amended to
accommodate fluctuations.
training (and learning) can be achieved in a variety of different ways, and the effectiveness of each
approach should be evaluated in context with the business need.
An important aspect of the ITTS is trying to understand how people learn – particularly, what issues
influence success. A significant part of this process should therefore focus on training (or learning)
outcomes. In this context, learning outcomes have been investigated by many researches, most
notably by Bloom (1956), and Kolb (1984). However, detailed research into „learning‟ and learning
strategies have provided many conflicting theories (Tonks and Armitage, 1997; Wilson, 2000), the
nuances of which can be influenced by many separate issues (Kim, 1993).
Developing an organisational ITTS to meet the business need, normally requires six main stages to be
undertaken. These range from the initial training definition process, through to the feedback and
evaluation stage – the details of which are shown in Figure 4.13. This process enables training
managers to assess and review their procedural issues regarding the precise role and scope of the
ITTS. The first stage (defining) identifies the parameters and issues that need to be addressed
(including the metrics required). The second stage (designing) requires managers to design the
boundaries of the training initiative (which is often governed by stakeholders, resources, or strict
implementation timescales). The next three stages (developing, documenting, delivering), are
concerned with determining the most appropriate teaching and learning strategies; documenting
decisions and processes; and delivering training in accordance with these requirements. The final
stage (feedback) focuses on the evaluation process, where the impact of decisions are measured and
assessed against the learning outcomes achieved.
Defining Designing Developing Documenting Delivering
Feedback
Figure 4.13 The ITTS Development Process
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In conclusion, the ITTS should incorporate strategies for measuring change in knowledge, to evaluate the cost-effectiveness and impact of training (Goulding and Alshawi, 1997). This requires formal targets to be identified and defined, and a demonstrable process (in the form of a training plan) through which this can be achieved. Training Plans and Training Targets A training plan (TP) is an organisation‟s formal statement of intent to develop its skill base (Kumaraswamy, 1997; Wateridge, 1997). It is derived from the BS, and is a structured mechanism for delivering specific training objectives – using identifiable targets and timeframes linked to an appropriate evaluation tool. From an IT training perspective, the TP should therefore incorporate all factors that could influence success; from the types of learning (procedural, conceptual, factual), through to the different types of cognitive learning styles, and the most effective methods of delivery. Understanding these issues can therefore often contribute new insights into the relationships between work and learning (Krogt and Warmerdam, 1997). Training plans should incorporate predetermined and prioritised targets or deliverables (outcomes). These are often in the form of performance attainment levels for corporate and group remits, but they can also be determined on an individual basis (for individuals to achieve). The process of setting targets requires a considerable amount of strategic awareness (Jones and Robinson, 1997), especially where targets are linked to specific BS needs. Targets may however also be subject to constraints, for example: „x‟ skills needed by „y‟ date, to undertake „z‟ project/task. Targets (and constraints) should therefore be established and agreed during the formation of the BS, the process of which not only helps with the alignment of needs, but can also help establish strategic, managerial and operational IT outcomes. Training outcomes should be in a readily identifiable and „measurable‟ format, so that the exact contribution each outcome makes on the performance gap can be assessed on an individual basis. It is therefore important to define the exact criteria for establishing targets, and the methodology for assessing outcomes. This is particularly important, as “…intended learning outcomes may not always match actual learning outcomes” (Tonks and Wan, 1991). Training Delivery Considerations Training delivery decisions often have a direct impact on training success, the deliberations of which warrants considerable attention (McDougall and Beattie, 1997; Subramanian and Lacity, 1997). The ITTS must therefore consider how training is going to be delivered, contemplating: how the teaching and learning strategy can be optimally geared to the needs of the organisation.
the prevailing time constraints and level of resources available to deliver training.
the scope and complexity of training (short/medium/long-term needs).
the choice (and/or mix) of training provider.
Consequently, the determination of the delivery strategy should consider the appropriate mix of training, as the different types of training delivery mechanisms can often affect performance (Horwitz, 1999). This procedure should also incorporate the key factors and concepts that affect learning (Kim, 1993), in order to ensure (and optimise) the skills delivery process (Jackson, 1999).
4.6 Monitoring Performance
The allocation of physical and financial resources to IT training often has to be justified to ensure resources are deployed appropriately (Michalski and Cousins, 2000). This justification may not always
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be financial, but the precepts of which should unequivocally prove that benefits have accrued from training. One of the main vehicles by which this can be achieved, is by demonstrating improvements in organisational performance. This process should therefore highlight how skills link to (and deliver) the BS CSFs to close the performance gap. Training evaluation is normally undertaken in two stages, specifically, at an interim stage (whilst training is being conducted) and post-training (after the training has been completed). The interim evaluation stage assesses whether training is being delivered in accordance with the TP, and covers such issues as progression, appropriateness, and satisfaction with the training providers. The post-training stage however, determines whether the expected skills have been delivered, and the precise contribution they have made to the performance gap. Before any monitoring or evaluation techniques can be considered, it is important to determine whether it is actually possible to set knowledge and skill attainment targets to measure benefits?. Knowledge is much more than an abstraction of facts and information; it contains the fundamental links and empirical connections associated within the learning process (Kolb, 1984). The construction of links and connections can form 'meaning', but meaning can not be achieved by remembering facts in isolation (Goulding and Alshawi, 1995). Skills however are far easier to measure and assess. In this context, the precise mechanism for measuring outcomes should be critically evaluated to ensure the metrics will produce meaningful results. Evaluating training results can often be difficult to discern, as problems tend to ensue regarding areas of perception and subjectivity – ranging from expenditure levied, the number of people trained, or outcomes achieved (Wong et al, 1997). Furthermore, qualitative forms of development can also be difficult to measure, as these often include issues associated with improvements in performance (or capacity) to undertake tasks after training (the metrics of which can thus be prone to misinterpretation).
5.0 Conclusion
The rate and pace of change in the construction industry is ever increasing (Betts et al, 1991; Aouad2 et al, 1999), and technological advances in IT are continuing to improve the core business process (Earl et al, 1988; Mata et al, 1995; Powell and Dent-Micallef, 1997). In this context, IT capability can be a valuable tool for meeting business goals and improving process (Hammer, 1990; Rockart et al, 1996); but this investment should be appraised (Ballantine and Stray, 1998) and extended to include IT training (Sakaguchi and Dibrell, 1998; Ahmad et al, 1995; Shen et al, 2000). However, the process of implementing new IS/IT initiatives into organisations must therefore include some provision for informing employees how their role using IT can help facilitate and deliver the core BS (Moreton and Chester, 1997). Whilst training can often lead to improved organisational performance (Naoum and Hackman, 1996; Chang and Cox, 1995; and Kumaraswamy, 1996), and be used to develop new skills and competence for changed roles (Warszawski, 1996; Clegg et al, 1997; Ulrich, 1998; Love and Li, 1998). Within the construction industry however, this provision has seemingly been somewhat neglected (Breuer and Fischer, 1994; Scott et al, 1997). Organisations should therefore endeavour to balance skills and competence to meet business goals (Andrews, 1987; Mintzberg and Quinn, 1991), and the identification of generic and specific IT training needs can help in this process (Shirazi et al 1996; Goulding1 and Alshawi, 1999). Furthermore, the metrics associated with evaluation should also be identified, as these issues are important to assess the effectiveness of training on the performance gap (Van Daal et al, 1998; Goulding2 and Alshawi, 1999). Relationship Between the BS, ISS, ITS and ITTS
The business strategy must be supported by the information systems strategy in order to deliver the prescribed goals. In this context, the IT strategy is therefore used to deliver the IS needs. Thus, the IT training strategy is needed to support the users‟ needs, in order to gain the prerequisite skills needed to perform within the organisation – see Figure 5.1. However, it must be noted at this juncture that the IT skills needed will of course have to satisfy not only the present needs, but also any future needs (in
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accordance with any changes in the IT strategy) – especially if these skills are to be used to gain a
competitive advantage.
Current IT
Strategy Information Systems Strategy
Business Strategy
Current IT
Training Strategy
Future IT
Strategy
Future IT
Training Strategy
Figure 5.1 Relationship Between the BS, ISS, ITS and ITTS
Problem Exercise
One of the key challenges facing the industry is finding resources (money) to allocate to IT training,
as managers often fail to see real tangible benefits. Identify the IT training challenges facing your
organisation, and propose a method of alleviating this difficulty.
Discuss your thoughts about this exercise with your co-students and the module tutor using
the online discussion board and weekly tutorials.
Conclusion
This workbook highlighted the importance of IT and the ITS in the delivery of business goals.
Organisations should therefore consider the importance of training personnel to use this technology,
especially where it contributes to (and supports) the business process (Rockart et al 1996; Barua and
Ravindran, 1996). IT training must therefore be prioritised to areas perceived to have the greatest
impact on the BS. In this context, it is important to identify the impact and relationship of process and
process modelling with the BS and IT training.