Technical Decision Making for Non-Technical Managers

1. Technical Decision Making for Non-Technical Managers Presented by: Kathleen Sherwin Director, Programs & External Affairs TechFoundation & John Cooper Senior Consultant-Technology Services Georgia Center for Nonprofits . TechConnect Curriculum 2004-2005

2. Abstract • Nonprofit managers are ever more often called on to make decisions about technology, but few have any background or training in information systems. • Lack of confidence and, in some cases, skill often lead to slow and ineffective decision-making as well as flawed decisions and, in some cases, no decisions at all. • A combination of increased literacy, good decision making processes, and effective use of technical resources and peers leads to better, faster decisions, even for non-technical managers. TechConnect Curriculum 2004-2005

3. Purpose of presentation • The purpose of this presentation is to provide a roadmap for nonprofit managers faced with making decisions about technology, explaining the factors that need to be considered in such decisions, how to avoid common pitfalls, ways to judge the value of proposed technology, and resources for validating decisions. • The presentation will also explain some of the reasons that decisions about technology are particularly difficult and risky for nonprofit organizations. TechConnect Curriculum 2004-2005

4. Goals/Objectives Attendees will: • Learn how to apply good decision-making skills to technology • Understand how to factor long-term costs and benefits into technology decisions • Know where to turn for advice and assistance • Find out how to avoid the most typical problems nonprofits have with technology decisions TechConnect Curriculum 2004-2005

5. Why technology decisions are hard • Complex, unfamiliar material • Benefits are hard to quantify • Costs often run well beyond estimates • The people explaining the choices are not good at explaining • It’s never been done before TechConnect Curriculum 2004-2005

6. The struggle in nonprofits • Fewer economies of scale • Every tech dollar seems a dollar not spent on clients • Small capital budgets • Consensus-based decisions are slow TechConnect Curriculum 2004-2005

7. Elements of a good decision • Need is clear • Solution is realistic • Vendor or staff is credible and capable • Other people reach the same conclusion • Basis for decision is articulated, even if it’s irrational • Criteria for measuring success are stated TechConnect Curriculum 2004-2005

8. A good technology decision • NEED: What problem are you trying to solve? What is the desired outcome? What will happen if you don’t? • OPTIONS: What are the potential solutions and approaches? • CRITERIA: On what basis do you define success? Is the option achievable? • DEFINE COSTS AND BENEFITS: How does each option stack up to the criteria? TechConnect Curriculum 2004-2005

9. A few pointers • Be clear about the reasons why you are pursuing a piece of technology • Check with peers who have made similar decisions • Write down your decision and analysis – even if you decide not to move forward TechConnect Curriculum 2004-2005

10. IT Life Cycle • Assess • Acquire • Implement • Support • Decommission TechConnect Curriculum 2004-2005

11. Total Cost of Ownership • Factors in all of the cost: • people • support • time, etc.. • Important to consider, but easy to manipulate • Most useful for assessing overall capacity to adopt technology TechConnect Curriculum 2004-2005

12. Evaluating Machinery • Always get “recommended” or better • Spend as little time on specs as possible – let software dictate the specs • Consider vendor service and quality • Get next to top of the line performance • Buy generic TechConnect Curriculum 2004-2005

13. Evaluating bids for services • Work must be broken into phases with visible milestones • Contractors often have NO IDEA how much to charge • Get more than one bid, and don’t run for the lowest price • Evaluate credibility and reliability first TechConnect Curriculum 2004-2005

14. Evaluating vendors • Ask the vendor how she/he makes sure clients are satisfied • Ask references about both initial project and follow-up / support • Create some conflict to see how the vendor handles it • Ask vendor what she/he expects you to do • Have all vendors describe how they have handled multi-vendor projects TechConnect Curriculum 2004-2005

15. Glossary: Terms you need to know • You need to be conversant with some buzzwords to be effective • You don’t need to know these things in depth • www.whatis.com • http://pcbuyersguide.com/PCbuyersguide-Glossary.htm • http://ifaq.wap.org/computers/computerglossary.html - for a smile TechConnect Curriculum 2004-2005

16. Getting a second opinion • Compare vendors and bids • Ask your peers • For very large projects, hire a 3rd party to help make the decision • Always compare the cost of doing nothing to the cost of doing whatever you propose – you give your own best second opinion TechConnect Curriculum 2004-2005

17. IT Project Management • Propose • Evaluate • Implement • Maintain / Support • Evaluate TechConnect Curriculum 2004-2005

18. Caveats on networks • Don’t cut corners on wiring • Backup, support, and reliability are more important than performance • No such thing as set and forget with a network – you need in-house skills • Don’t overbuy your server – most nonprofits need moderate performance TechConnect Curriculum 2004-2005

19. Caveats on web development • Websites are works in progress – don’t plan on a finished product • Build only as much as you can keep updated • Think first about WHO will view your site, then about WHAT they will want to see • Plan review of site every 6 months TechConnect Curriculum 2004-2005

20. Caveats on custom programming • If you didn’t get sticker shock, the price is probably too low • Budget 30% of development per year for updates and support • Stick with commonly used languages and applications • You’ll use 60% of what you ask for – buy only that TechConnect Curriculum 2004-2005

21. Caveats on service contracts • What does “next day” mean • How much will service recover – hardware? Operating system? Programs? Data? • Is response or solution guaranteed? • Self-insurance is cheaper for workstations and most printers TechConnect Curriculum 2004-2005

22. Key questions to ask • Do you understand what you’re buying? • Does the vendor understand what you’re buying? • What’s the value proposition? • Can you afford the downstream costs of owning? • Have your peers validated your thinking? TechConnect Curriculum 2004-2005

23. Measuring your success • Schedule 3, 6 and 12 month reviews for all major IT projects • Document your milestones and progress • Be honest and clear about items that do not do what you wanted • Ask the vendor and users to make the same evaluation TechConnect Curriculum 2004-2005

24. Backing out of mistakes • The hardest decision to make is to cut your losses • If outcomes are not achieved you MUST ask whether to continue • Avoid blame and move on – proving fault is very difficult in IT TechConnect Curriculum 2004-2005

25. Conclusion • Making good IT decisions is really just making good decisions. Follow your head and your heart, and be honest with yourself, and you’ll do very well. • Remember to call your peers for assistance, and to call on other nonprofit resources TechConnect Curriculum 2004-2005

26. Contact Information Kathleen Sherwin Director, Programs & External Affairs TechFoundation 617 354 7595 ksherwin@techfoundation.org John Cooper Senior Consultant - Technology Services Georgia Center for Nonprofits 678-916-3013 jc@gcn.org TechConnect Curriculum 2004-2005