Virtual lunches feed IT needs

By VICKI JAYNE

Managing a virtual company which exists to spin new-value webs out of existing technologies for its alliance partners could be called a structured seat-of-the-pants approach.

Esolutions was set up 18 months ago as an alliance between Telecom, EDS and Microsoft.

It functions like a knowledge broker, using the technology base and skills of its main partners, plus other suppliers or channels where relevant, to create packaged e-commerce capability.

It's a kind of cut-lunch approach to feeding IT needs.

General manager Sue McCarty goes for a food analogy and a bit of inflationary maths to describe what esolutions (ES) does.

"The best description I have heard is that we source the ingredients, our channel supplies the chef and a recipe, and the result is a new meal for customers."

Such alliances are becoming increasingly common in an IT world where technology convergence and increased specialisation make collaboration a commercial necessity.

It is a case of one plus one equals three and for Sue McCarty that adds up to an exciting environment in which to work.

"There is a framework, but it's very flexible.

"We are breaking new ground all the time here - creating markets as we go, creating ways of doing things as we go.

"And the secret of being successful is being fleet of foot and open-minded."

The ability to capture value by building a series of interlinked knowledge webs calls for a management approach that is rich in "soft" and "hard" skills.

Negotiating ability, relationship skills and gut instinct must be based on business acumen and a keen sense of purpose.

While esolutions doesn't have, or need, a legal entity, it must have a strong sense of self-identity - to know why it exists, its values, its culture, and its goals, says McCarty.

"When you put together something new like this, there is no pre-set understanding of what can be achieved or where you're going.

"So you have to make sure you create a goal and vision that, regardless of what needs to change to get there, will always be relevant."

That means having a lot of different irons in the fire and running regular checks on their heat levels.

ES has weekly meetings in which each employer ticks off progress toward a specific goal, and the company's strategic road map is re-visited every three months.

"You need a very tightly focused approach to achieving goals, but with a huge amount of flexibility built in," says McCarty.

Getting maximum leverage out of the alliances means having a good understanding of partners' business goals and a good eye for new opportunities.

Entrepreneurial skills, the ability to see the big picture and to think laterally are all key skills, says McCarty.

"The executive team's job is to look at the bigger picture for partner organisations, see where the opportunities are, and then pull together the skills and expertise to create something better."

Whether links are internal - for example, different Telecom units - or external -Telecom plus Microsoft - those heading the projects need good relationship skills.

"We have about 65 people here, but managers look after a much larger team than they have direct control over because they are reaching back out into alliance organisations.

"So you need people skilled in managing virtual teams and influencing an outcome where they don't necessarily have the power or delegated authority."

Pragmatism is important, too. "You could get lost in the politics if you wanted to.

"It is critical to remain pragmatic, to negotiate to a realistic end point, because speed to market is important.

"So you want people who can be expedient in the way they achieve quality outcomes."

A fair amount of intuition and gut instinct is involved, but it is backed by robust business processes, says McCarty.

Despite a difficult market, esolutions has been able to meet all its performance targets.

It has grown from a three-person establishment team into a 65-strong company in 18 months.

And it has scotched a few myths about how alliances work.

For instance, building trust is not a prerequisite.

"Upfront, it's all about what value you can derive together.

"Trust is what happens over time if the alliance lasts. So spending time on trying to develop it first is a waste."

Nor are good alliances built on good contracts.

Stopping to dot the i just slows speed to market and may constrain possibilities, says McCarty.

"You need to be fleet of foot and be able to change your mind - so the alliance should be based on general principles rather than being tied down."

It's important not to get stuck in behaviour patterns characteristic of a particular partner, but to evolve new ways of behaving to go with the new alliance.

"Your behaviour has to be collaborative and can't be prescribed by the environment you came from. If you don't change your behaviour, then you won't succeed - I feel strongly about that."

Another myth is that you can't expect good results straight away.

"You absolutely can, and if you don't, then you'll lose the interest both of your partner organisation and your own staff pretty quickly."

Nor, says McCarty, is there a "right" way to manage an alliance.

"You need to understand the value you can derive right from the beginning and out of that you will create a way forward.

"But you have to adopt a flexible approach and work it through as you go.

"There is no way forward already created for you."

* vjayne@iconz.co.nz