The only constant regarding the IT labor market today and tomorrow is that it will be defined by change. Consider just a few of the shockwaves that have impacted IT workers and companies in the last few years—the creation of entirely new job categories and industries made possible by the Internet, the rise and fall of many dot-coms, the proliferation of offshore outsourcing and global workforces, and the significant shifts in supply versus demand levels for domestic IT professional talent.
One principle that has retained relevance in this era of change and turmoil, however, is the IT industry Core Group Strategy. First introduced in the early nineties by MATRIX Resources co-founder Bill Gower, the Core Group Strategy concept began as a response to how technology developments and initiatives become integrated into organizational structures based on the ever-changing dynamics of IT staffing requirements.
In an effort to meet the skills demand posed by challenges in platform selection, application development, tools selection, legacy support, and other factors, many clients built IT strategies around hiring new fulltime employees, supplementing them with contract consultants, and/or training and retraining existing staff to build additional skill sets as required. This blending of resources is critical to the strategy and comprises the essence of the Core Group Strategy.
Two Types of Staff
The Core Group Strategy advocates building and staffing IT organizations with two types of professionals: The first type (Core Group) has generalist technical abilities, strong interpersonal and judgmental abilities, and a desire to excel into advanced technical areas or leadership and management. They comprise key roles as business analysts, project leaders, architects, and resource managers, and often fill niche technical leadership positions. These people merit investment with training, job enrichment efforts, and mentoring. They usually are upwardly promotable, adaptable, and mobile (from one role to another). Over time, their internal company knowledge becomes invaluable to the organization, and their probabilities of leaving will continually decrease.
The “resources” to supplement the Core Group come via contract consultants. These professionals provide expertise in an exact skill, and are often utilized only for a specified period of time that is required for a project. Afterwards, these individuals will ultimately roll off the project or move to another project, if appropriate, based on the reputation they have established and the results they have achieved within the organization. On occasion, a contractor may convert to a fulltime employee and join the Core Group, when it makes sense for the organization and the individual consultant.
In the last decade, the Core Group Strategy dynamic has become an integral part of corporate staffing strategies. No longer looked at as outsiders ill-suited for permanent positions, contract consultants today are more often associated with a high degree of skill and professionalism. It is not uncommon for clients to claim —“ some of my most valuable contributors are my contractor resources.”
The “Wheres” of Core Group Strategy
“Where” to use a contract consultant or Core Group member for a project depends on the nature of the assignment. The talents of contract staff might be best utilized for “technology-based” projects that don’t require extensive business practices knowledge. For example, getting an e-commerce server up and running is pretty much the same task regardless of the server model or the company. The knowledge to accomplish this job comes from product experience, training, and research. But when it comes to analyzing and implementing enterprise business applications, Core Group staff, with an insider’s understanding of the organization’s culture and practices, will most likely be the better choice.
The Outsource Option
Project outsourcing, both onshore and offshore, generally should follow a similar staffing philosophy. While applications development, legacy support, call centers, and other non-mission critical projects can move offshore for cost-savings reasons, many IT departments have learned that keeping business analysis skills and project management expertise in-house are key elements for ensuring successful job completion, as well as retaining critical corporate “ knowledge assets.” An optimum talent mix might utilize in-house resources to determine the business need, translate that to requirements definition and design, and then hand over and manage the relationship with the lower cost outsourcer.
The “ Whens” of Core Group Strategy
“When” to employ contract resources has evolved over the years. As technology change has stabilized across the industry, some of the urgency to differentiate has dissipated, rendering the need for a quick hit “skills transfer” less of a business imperative than previously. The frenzied, reactionary moves of a few years ago—“Our competitors have a Web site. We don’t. Go hire a contractor immediately,”— has been replaced with a more measured response to implementing change that better takes into account how technology fits into the larger business framework.
Today, one of the biggest drivers for Core Group Strategy is smoothing out the variations in workflow. The economic cycle of many businesses today is defined by peaks of very intensive project work, followed by valleys characterized by ongoing support and planning. What’s the best strategy for handling the peak workload? Many companies have become very lean, and middle level managers are either gone or very strapped in terms of resources. Some managers simply do not have infrastructure in place to quickly mobilize and manage a project team. Should they try to extract more work with fewer people and risk burnout? Or should they staff up with Core Group to get the work done, and then be staffed with idle resources when the project crunch-time has abated?
More ROI From IT Dollars
CFOs and CEOs today demand more ROI from their IT dollars, and CIOs are not given a blank check to accomplish projects. They are tasked with being prudent managers of their IT spending. These decisions, which can cost a company thousands of dollars in terms of lost productivity, now undergo a higher level of financial scrutiny.
More often than not, the positive preference is to start with contract consultants to handle this fluctuating workload model. When the workloads decrease, so do their consultant rosters—not the Core Group resources. The negative effect on employee morale is minimized. The Core Group remains intact and has some comfort factor related to job security. The flexible, contract staffing resources come into a project knowing what kind of longevity to expect and are better prepared to migrate to a new assignment.
Smart Business
Core Group Strategy is smart business that will increase profitability and help IT organizations adapt well to new technologies and changing economic conditions. In fact, as many companies begin to look offshore to reduce costs and balance risks, the importance of having the right strategy with the right blend of resources and skill sets—offshore/onshore, contract, and Core Group staff, becomes even more critical to the ultimate success of the project and the ROI achieved. And, because it provides an optimum match for individuals as well as companies, Core Group Strategy serves well the interests of all parties.
 About the Author
As Vice President of Field Operations at MATRIX Resources, Inc., Don Palmer works with MATRIX clients to help maximize their investment in IT human capital and IT services. Prior to joining MATRIX in 1990, Don worked with IBM in technical programming and sales roles. Don can be reached at Don_Palmer@MatrixResources.com. |