IT STRATEGIC ADVANTAGE
          August, 2005

  IN THIS ISSUE:
  1.  Thanks!
  2.  Why doesn't IT get better?
  3.  Help is on the way
  4.  Catch us in public

       THANKS!
     Thanks for making the launch of IT Strategic Advantage a success.  We had great feedback and more new folks are signing up every day. Scott Adams asked 'Dilbert' readers to send in their real life stories and his cartoon strip often resonates with readers who wonder, "how did he know that's exactly what happens here?"  My readers want to hear your stories...successes or frustrations...great results or disasters...Each of us has some hard-earned Wisdom. Send me your 'story' and share what you learned (anonymously)...Use this special e-mail address: DoctorRebeccaSR@cs.com.

        WHY DOESN'T IT GET BETTER?
     In 1994 a Standish Group study found only 17% of US IT projects met their objectives and one third were actually canceled at a loss of $80 BILLION.  In 2001, canceled projects cost US companies $140 BILLION.  Worldwide that year, the losses due to failed projects were $175 BILLION.  A reader sent me a white paper* recently quoting a Gartner Research report showing that 20% of IT initiatives "don't achieve their objectives.  That means $500 BILLION in bad investments."
     FIVE HUNDRED BILLION...that sounds like real money to me!
     Customer Relationship Management (CRM) efforts have cost $10 Billion in the US, "but analysts estimate that more than half of CRM projects fail."
     Another major IT investment today is in Enterprise Resource Planning (ERP) where "more than 90% of companies are dissatisfied with the results."
     So why do IT results continue to get worse despite a whopping worldwide investment of "$2.5 TRILLION -- 50% of total corporate capital spending?"  You don't have to be a financial genius to figure out we've got a big problem and it's not getting any better by itself...in fact as all the different studies show, the story is getting worse...What's going on?
     According to James Blythe, Chairman of Diageo, a leading premium drink company, it boils down to two things...both of which have been with us since the beginning of 'IT' over 50 years ago:
        *  IT strategic advantage is hard to sustain -- everyone scrambles to adopt the new changes whether they need them or not.  For example, when I bought a new tri-band phone earlier this year, I could NOT get it without a built-in camera.
        *  Companies "lack the management discipline they need when evaluating technology proposals."
     It's this last root cause that has been my focus for over 20 years.  I agree with Blythe completely when he points out the need to make investments "not for their own sake but to bring about real business change."
     There's the rub...that process stuff again!  This is where we in the IT world continue to stumble.  Companies invest in 'infrastructure' but fail to design new robust processes that will maximize and leverage the new technology.
     McKinsey, another IT research company, and the London Business School looked at 100 companies in Europe and the US to determine "the impact of management practices and technology on the financial performance."
     The results were as predictable as they were depressing:
     *  The companies with the top IT ratings showed a 2% productivity increase for their technology investments
     *  The companies with the top management practices ratings showed an 8% productivity increase for their technology investments
     *  Companies that successfully combined good management practices with good IT increased productivity by 20%.

     James Blythe commented on these findings, "It's obvious that companies should focus on their strategic direction and on enhancing management practices.  Technology is one of the tools that can help deliver the strategy."
      Yes, it seems obvious...yet year in and year out I observe (and the data support the observation) that strategic focus and process orientation, which are necessary for aligning IT with the business (today's big buzz) and for improving both effectiveness and efficiency, are lacking.
     CRM and ERP initiatives are everywhere and a major topic in CIO-oriented journals and conferences...ads tout fabulous results...while the data tell a different story when so many of these efforts fail.
     What's the solution?  You already know the answer...IT leaders need to embrace a strategic approach and stick to it. They must really calculate and understand the Total Cost of Ownership (TCO) of all technology solutions and initiatives.  They must adopt the great, well documented management practices and breakthrough leadership that requires both vision AND execution.  Until they do these things...until WE do these things...whether we're CIO, managing the help desk or testing software...annual reports from McKinsey, Standish, Gartner and others will continue to document hemorrhaging IT budgets with worldwide economic impact.
     *(Quotes and Gartner/McKinsey data came from Global Executive Education: "Big IT Investments Do So Little for Shareholder Value.")

      Want to know more about leading IT (or your part of IT) strategically?
      We work with you to improve ROI and the bottom line by managing and leading strategically.
    
     Not ready to bring us in and want to learn more about this strategic approach?
       Attend our public seminar, Managing the IT Department 
         December 19 - 21, 2005 at Management Centre Europe in Brussels.
         http://www.mce.be/events/listcomp.php?area=15&subcat=120
    
     Still not ready to make a big investment and want to know more about strategic planning and execution?
         You're in luck!  The printer goofed and we have a limited number of copies of our highly praised book with slightly damaged covers...same great content...ready to ship to you, while the supply lasts (and it's going fast.)  Instead of $27, you get Success Planning: a 'How-To' Guide for Strategic Planning with all of the same proven techniques, templates and approaches, for only $20.  We'll cover shipping within the North America and Western Europe (Florida buyers, we'll pay the sales tax so you save another 7%.) 
    
     You can:
  *  Order directly from our website www.AdvantageLeadership.com/book.html  or

  *  Call us at 305-652-3466 (US) or fax your order to 305-652-3866
  *  Mail your check or money order to Advantage Leadership, Inc., 633 NE 167th Street, Suite 1015, North Miami Beach, Florida 33162, USA.   
    
     Still not ready to invest in your strategic abilities? 
       Visit our website and read more about the book, including a sample chapter
       www.AdvantageLeadership.com/book.html
     Take advantage of this chance to improve your effectiveness...your results...your ROI

        HELP IS ON THE WAY
  *  Are you confident about your Software Asset Management program?
  *  Will your processes stand up to a SOX audit or meet CMM, CMMI maturity requirements or ISO 9000:2000 standards?
  *  Are your management and customers delighted with the IT/Software solutions you deliver?
     Our new IT Quality, Productivity and Compliance Center will serve you with a wide variety of new resources including consulting, assessments, white papers, published articles, tools, templates and training.
     Our official opening is mid-September but we'll soon be offering special resources to visitors...Start visiting us in the latter part of August for specials prior to the Grand Opening. www.AdvantageLeadership.com/productivity.html
     What will we offer?
  *  Software Asset Management -- consulting, tools, assessments
  *  Metrics -- consulting, templates
  *  Balanced Scorecard -- consulting, tools
  *  IT and Software Improvement -- consulting, training
  *  Readiness and Maturity of IT Processes -- Assessments, Consulting
  *  Access to experts...and much more

     Check out www.AdvantageLeadership.com/Productivity.html during the dog days of August for some cool and refreshing resources.

     ...MORE HELP
     Setting up an IT or Software quality function has always been a dicey job...whether the focus was testing, standards or actual process improvement...the bad news is, it's still tough...That's why I'm delivering some good news...Our newest resource will be launched with the IT Quality, Productivity and Compliance Center in September...
     The Hard Job of Making Software Work: Establishing Quality Assurance Step By Step
     This new resource is based on many years of experience setting up and managing QA functions and working with IT departments to establish or revitalize these functions.  Like all our resources, it's full of practical, 'how-to' information, templates and techniques. 
     I learned the hard way...you can have an easier time and get better results faster...
    
  Order now during this pre-publication period and receive three resources:
  *  E-book: (100+ pages) The Hard Job of Making Software Work: Establishing Quality Assurance Step By Step  
     How to set up Quality Assurance, Quality Control and Quality Improvement, no matter what your technology environment or economic sector to get bottom line results and demonstrate ROI...and much more
  *  Uncut Keynote Address: Deming Deja Vu -- What Today's Quality Professionals Can Learn from the Quality Pioneers 
     Basic principles you need to build successful solutions
  *  30 Day E-mail Mini-Course: 30 Days to Building the QA Function Management and Customers Really Want  
     More tips, techniques and templates for successful quality initiatives
    
     You get all three resources for only $47 if you ACT NOW...Take advantage of this opportunity before the official publication in the fall when the offer will be withdrawn and prices go up. (You'll receive your resources after September 15.) 
     www.AdvantageLeadership.com/Quality.html

     CATCH US IN PUBLIC
'Dr. Rebecca' is returning to the public seminar platform...after a respite to produce new resources for you!
     *  Project Management for QA Professionals, August 25, Boston
        http://www.testinginstitute.com/stpw/Boston05/
     *  Formal Inspections, August 26, Boston
        http://www.testinginstitute.com/stpw/Boston05/
     *  Conference: Practical Software Quality Techniques, Minneapolis, MN, September, 2005                 
      http://www.psqtconference.com/2005north/program.php
        *  Eight Best Practices of Requirements Gathering, Featured Presentation, September 12
        *  What Testers Need to Know about Inspections, Concurrent session, September 13
        *  Management Skills for Technical, Project and Testing Managers, Tutorial, September 14
        *  Formal Inspections, Tutorial, September 16
     *  Conference: QAI International Testing Conference, Orlando, October, 2005                     
     http://www.qaiworldwide.org/conferences/oct_2005/p_monday.html
        *  No More Bugs! How to Spawn 'Terminator' Processes, Tutorial with Tom Staab, October 17
         Case Study, installing a full life cycle and more, client participation
        *  Visit us at the Vendor Showcase October 18 - 19 
        *  Unleash Inpections for Testers, Concurrent session, October 20    

      Want more personalized training?
     We can tailor these programs and others to your needs and enable you to get results with your team...Our full catalogue will appear in our new IT Quality, Productivity and Compliance Center. www.AdvantageLeadership.com/productivity.html

    Or check out our current IT/software quality training and consulting resouces
         www.AdvantageLeadership.com/it.html  or Call us: 305-652-3466

     Are you still struggling with Requirements Gathering? 
     You're not alone...over half of all defects arise in this crucial process for any initiative.  Remember that $500 BILLION in failed projects discussed earlier?  This is where most of it starts...Requirements Gathering...Maybe we should change the name to Defect Generating!
     *  Are you ready to reverse the trend? 
     *  Delight customers by delivering what they need? 
     *  Reduce costs by eliminating costly defects? 
     Our resource, GET GREAT REQUIREMENTS, hits a triple with an e-Book, Keynote Address and 30 Day E-mail mini-course...read all about it and order today...
     http://AdvantageLeadership.com/book.html#requirements

          Remember to write us with your success stories, lessons learned and outrageous observations of IT...
                 DoctorRebeccaSR@cs.com

   Advantage Leadership, Inc.
   633 NE 167th Street, Suite 1015
   North Miami Beach, Florida 33162 USA
   Phone: 305-652-3466  Fax: 305-652-3866
   www.AdvantageLeadership.com
   Rebecca@AdvantageLeadership.com