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Technology Traps and Mishaps —
A Ten-Part Series
Editor’s Note: Following is the introduction of our ten part series called “Technology Traps and Mishaps,” by Fred Ode, CEO,
chairman and founder of Foundation Software. The first part in the series follows this introduction.
BY FRED ODE
Implementing new technology
and staying current with
technological trends is a great
way to boost productivity and
profits and keep your company
competitive. The trick to success,
however, also involves understanding
common pitfalls and potential problems
so that your “perfect technology
solution” does not become your greatest
technology mistake.
Over the years, having talked to
thousands of construction owners
and managers, the first thing I
usually learn from people is what
is not working for them. From their
frustrations and difficulties, I have
come to understand the many reasons
why technologies fail, including
those technologies that appear to be
superior in every comparable way.
Problems have as much to do with
expectations, perceptions and decision-making as they do with concrete
product performance.
Top 10 Tech Traps to Avoid:
1) Technology is always the
answer. Don’t make the mistake
of thinking that no matter what
the problem, there must be a new
technology solution out there. Bill
Gates understood this trap well
when he said, “The first rule of
any technology used in a business
is that automation applied to an
efficient operation will magnify
the efficiency. The second is that
automation applied to an inefficient
operation will magnify
the inefficiency.” Before looking
to technology to solve problems,
therefore, construction owners
and managers need to look at
the processes in place, the people
using them and the capabilities
of current technologies.
2) New is always better. Some
folks want to have the latest
and greatest, no matter what the
cost. But not all shiny new toys
are right for your business. New
can be better, but not always…
and at what point is it no longer
cost-effective?
3) There is no reason to change. On
the opposite end of the spectrum,
low-tech types cling to their old,
yet comfortable technology. Lots
of people resist change because:
They fear the unknown, they are incapable of learning something
new or they are too busy to waste
time with new technology implementations.
Chances are, the “old” technologies are costing
them a great deal more in inefficiencies
and wasted resources.
4) The research is thorough. A few
hours were spent researching the
product everyone believes will
improve efficiency and quadruple
profits. The next step is selecting
the short list of products,
right? Wrong. That’s because the
research phase, which began
with assumptions, is biased and
flawed. If the goal is to choose
technology products best suited
for your company, you must start
with a clean slate and skip no
steps in the process.
5) Enough time and resources
have been allocated. No matter
how simple a technology product
appears, the biggest mistake is
to underestimate the time and
resources it will take to select,
narrow down the choices and
implement the product. Remember
the last time you made a major
hardware/software purchase and
promised everyone it would be
up and running in just a “few”
weeks? Enough said.
6) Selecting products based solely
on price. It’s a mistake to go into
any technology selection process
with a set price in mind. Thinking
that you must spend top dollar to
get the best product available is
not always true. Companies often
buy applications with all the bells
and whistles when all they will
ever use is the horn. On the other
hand, setting the budget too low
could eliminate the products that
will serve you now and well into
the future.
7) Trusting everything you hear.
Everything you read in print
and every comment made by
competing vendors or others
should never be taken as absolute
truths. Do that and you risk
eliminating the one product that
your company could truly benefit
from, or you could end up with
a “lemon” instead of lemonade?
The best way to find what’s best
for your company is to investigate
yourself.
8) Not getting all users to “buy in” to the concept. You
spent the time doing lots of background research. You pinpointed
problem areas and identified
the technology product
that will bridge the gap. The
investment has been made and
implementation has begun. The
problem is that employees want
nothing to do with the “solution,”
and some have reverted
back to old technology methods.
The focus here is how to get
everyone to buy into the concept
from the beginning, become part
of solution and be realistic with
timeframes for learning curves
and implementation.
9) Thinking a project is 100
percent complete. Lots of people
think: “Wow, that was a lot of
work selecting a new technology
product. Glad that’s over.”
Wrong. If you want to stay in
business and stay profitable, new
technology implementation must
become part of your business
plan. It’s an ongoing process.
Companies must always be tweaking
technologies and looking for
new ways to improve.
10) Taking technology for granted. Sometimes, technology can
become a crutch, and businesses
become lazy. Where once
you checked over every report,
now you think there is no need
to worry about it. But are the
figures really correct? Just
because the numbers line up in
pretty columns doesn’t mean
that the formula is right or data
entry was flawless. For example,
many businesses fail to take the
time to copy important business
data “because it’s all safely
saved in the computer.” That is
until a fire or hurricane takes
out the office, and no backups
were stored off-site.
To avoid falling into these technology
traps, read on about Tech Trap
No.1 in the article that follows in this
issue and Tech Traps Nos. 2 through
10 in subsequent monthly issues of
Construction Business Owner.
Fred Ode is the CEO/chairman of
Foundation Software, developer of construction
job cost accounting software
called FOUNDATION for Windows. For
further information on FOUNDATION
for Windows, visit www.foundationsoft.
com. Fred Ode can be reached directly
by phone at 800.246.0800 or e-mail
fred@foundationsoft.com.
Tech Trap No. 1 —
Technology is Always the Answer
Editor’s Note: Following is the first of our ten part series called “Technology Traps
and Mishaps,” by Fred Ode, CEO, chairman and founder of Foundation Software.
BY FRED ODE
I’m fifty-five, fat and fit. Okay,
I lied about the “fit” part.
Candidly, this winter I got
myself somewhat out of shape,
and I really want to do something
about it. So, I was thinking I
should go out and buy an elliptical
something or other exercise machine.
You see them advertised on TV all the
time at 3 or 4 a.m. when you can’t
sleep because of the large pizza you
ate just before going to bed. These
machines represent the latest in
exercise technology, and the results
are guaranteed—right? However, the
solution for me is not exercise technology.
My solution has a little more
to do with the establishment of some
better processes in my life. Exercise
more and eat less—and no late night
pizza! It’s not all that complicated.
In business, as in life, the temptation
is to believe technology will
solve your problems for you. Reality
shows us that possibility isn’t even
close! The only time technology will
help is if you already have the processes
in place.
Take, for example, the advice Bill
Gates once gave:
“The first rule of any technology
used in a business is that
automation applied to an efficient
operation will magnify the
efficiency. The second is that
automation applied to an inefficient
operation will magnify the
inefficiency.”
I can give two business examples
of how Bill’s rules are correct. They
go back to 1991 when I was the lone salesperson for my company, and the outcomes are as true
today as they were then.
The first business was a union contractor, running
eighty people in the field. The company didn’t own a computer.
Everything was manual. However, they did their
own payroll, union reporting, certified payrolls, job costing
and financial reporting. This company was extremely well organized,
and they had a great set of processes in place.
They were a natural fit for our construction accounting
software. It literally reduced their workload by 80 percent,
allowing them to use their time for more sophisticated job
costing and analysis of their business. Clearly, according
to our friend Bill, they were able to use technology to
magnify their efficiency.
The second company ran about thirty people in the
field. They owned a computer, but it sat in the corner and
collected dust. They used a payroll service, but had difficulty
getting information to them on time. They had
no job costing, and the only financial reporting occurred
once a year when they handed over their paperwork to
their accountant. Fortunately, the business was small
enough and the owner skilled enough that they always
managed to somehow make a profit.
Though it would have been easy for me to sell this
second company our software, it would have been a disaster.
Without a shift in the processes and procedures, the
implementation would have failed, and as Bill described,
the automation applied to inefficient operations would
have magnified their inefficiency. At best, it would have
consumed a great deal of their time, effort and focus and
would have yielded no results.
Now, to be honest, I didn’t walk away from this sale. It
wasn’t in my nature. What I did was put a plan together
for them. They invested in our software, and we provided
them with an extended training period, covering several
more months than normal. We established a simple, but
practical job cost structure that they could easily track
in the field. We trained their key people, and in general,
changed the way they categorized and collected data. As
this was occurring, we transitioned these new processes
over to our software. It took longer than normal, but in
the end it worked.
For both companies, technology always followed efficient
operation. The first business already had these operations
in place. As for the second, they needed to first
establish their processes before technology would help.
Let’s assume you are having trouble getting accurate information from the field for payroll,
job costing and equipment usage. You
attend a trade show and become convinced
that by implementing PDAs
in the field, your problems will be
solved. But that’s not necessarily the
answer. You need to first “sell” your
field people on the benefits of transmitting
accurate information. Once you have their buy in, you will need to establish the processes to make it
happen. The establishment of these
new processes may involve the implementation
of PDAs, or it may not. The
processes are key and must first be
in place prior to implementing the
new technology. In that way, you will
magnify your efficiency.
In Jim Collins’ now classic book,
Good to Great, he described the major
difference between successful and
mediocre organizations:
“The good-to-great companies
used technology as an accelerator
of momentum, not a creator
of it.”
Clearly, technology is not always
the answer. Without planning, preparation
or processes, technology can be
a great waste of resources that could
be better spent elsewhere. The real
answer lies in how you use technology.
Use it to support your strengths,
and you will increase your efficiency
and perhaps even take your company
to a new level. I think Bill and Jim will
agree with me when I say, “Technology
only helps you do better that which
you already do well.”
On that note, no more late night
pizzas for me. I feel the momentum
building!
Fred Ode is the CEO/chairman of
Foundation Software, developer of construction
job cost accounting software
called FOUNDATION for Windows. For
further information on FOUNDATION
for Windows, visit www.foundationsoft.com.
Fred Ode can be reached directly
by phone at 800.246.0800 or e-mail
fred@foundationsoft.com.
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