CONTEXT: THE CASE AND PLACE FOR SMART DATA STRATEGY in .NET framework

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CONTEXT: THE CASE AND PLACE FOR SMART DATA STRATEGY
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Resources are allocated People are the central focus Finally, every training course is aligned with the business it serves and education is customized for each person to maximize potential Each of the propositions is supported by the case However, analysis of the data revealed more depth than what is currently in the literature This study can be extended by modifying or rethinking the propositions based on what was uncovered by the case The rst proposition states that a systematic methodology will facilitate change efforts Fannie Mae uses the University Model to develop people, align classes to business objectives on the job, and enable equitable evaluation based on training The model is also used to keep technical training exible A natural extension of this study is to explore the impact of these human and technical factors on change management People development concentrates on two dimensions human and technical Human development encompasses behaviors, personality traits, and attitudes Technical development encompasses skills, knowledge, and competencies For real change to occur, Fannie Mae has surmised that people must understand why change is important to the business Hence, IT training is not limited to basic C or SYBASE A curriculum is designed with a Fannie Mae slant; that is, it re ects what people will do back on the job It also includes con ict resolution, creativity, communication, and teamwork training to develop the soft side of its technical people Personality tests are given to people to help customize training to the individual Fannie Mae also believes that behavior can be shaped if it hires people with the right attitude Technical development focuses on skills, knowledge, and competencies Skill and knowledge development is pretty straightforward because the model helps match training with business The second proposition states that top management support is critical to successful change The case supports this proposition The CIO is the champion and visionary of training transformation at Fannie Mae He hired Gus to help him implement his vision The president is supportive of the University Model and budgets generously for IT training (approximately $7 million per year) Two other important factors are risk-taking and mistakes Top management is happy if training hits the mark 20% of the time because of dramatic increases in people productivity This means that 80% of the time mistakes are made Allowing mistakes as a natural part of the learning process encourages risk-taking and innovation Researchers can augment this study by gathering more data about each factor The third proposition states that a strategy-driven approach will facilitate transformation Transformation at Fannie Mae focuses on its training paradigm because it believes that people are the key to success The idea is to train information system (IS) professionals so that they can deliver whatever work, services, and products the business needs Training works with business managers to develop a curriculum that is strategically aligned with the business needs of the enterprise Exploration of training business partnerships and strategic alignment of the curriculum can further transformation research
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The fourth proposition states that holistic management will facilitate change The case brings out three factors that make up holistic management equitable assessment, customized training, and adoption of a holistic approach Holistic assessment is when everyone is evaluated based on the contribution to the enterprise It is not subjective or trivial It is performance based Evaluation at Fannie Mae is based on the customized training a person receives, how- the person uses it to deliver what the business needs, and best practices A group of managers and peers decide on what the best practices are for each job Evaluation forms are uniform (except for management evaluation), which helps people perceive them as fair Training is customized to the individual and what he/she must perform back on the job Finally, Fannie Mae embraces a holistic management approach to IT training The philosophy is top down Top management communicates to people that business value and understanding is important for everyone People are rewarded for enterprise thinking, innovation, and creativity The University Model guides the design of an aligned curriculum with business needs across functional areas and the enterprise Human development is at the center of the philosophy People do the work and can therefore make or break a holistic approach The fth proposition states that knowledge is created and retained by people Fannie Mae is betting the farm on this philosophy Top management invests millions of dollars in people development The goal is to create an environment that rewards value and encourages risk-taking It is based on the notion that people are the conduit of information sharing They create information and knowledge, pass it on to others, and retain what they believe is useful to them Knowledge is a tricky thing It is not tangible The inferential engine inside [a person s] head generates what we want We don t know how it works, but we know that as we develop and challenge our people, information sharing and knowledge creation dramatically increase (G Crosetto, personal communication, October 29, 1999) Even though Fannie Mae is totally committed to the idea that people retention translates into knowledge creation and retention, it puts a lot of pressure on management It is much harder to manage autonomy than merely telling someone what to do We have to allow people the freedom to be creative, but we have to make sure that what they create is valuable (E McWilliams, personal communication, October 29, 1999) We are really managing chaos Controls are minimal as compared to an autocracy The time and effort we put into developing the people system is daunting, but the bene ts are amazing (G Crosetto, personal communication, October 29, 1999) Failure to adapt to a changing nancial climate and complacency toward adopting a SOE model led Fannie Mae down the road to destruction and placed it among one of the major contributors to the 2008 Wall Street collapse asco Surveying government and commercial enterprise customers for a number of years, and from having been directly engaged in related topics for more than 15 years, the authors have observed the following tendencies, in companies such as Fannie Mae, which have contributed to their downfall First, these companies have de ciencies and omissions from a government and commercial data strategy Second, the companies make advances in commercial enabling technology with gaps in application and implementation Third, while there is continuous investment in information technology on a large scale, the
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