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New year, new attitude

Despite the dire warnings of the doom mongers, there is still reason for optimism and, now more than ever before, we need to push forward and harness the new challenges that we face.
Jill Hamlyn
By Jill Hamlyn, Managing Director
Johannesburg, 13 Dec 2001

It has been a busy year. Major local and international events have kept us glued to the news. Market indicators have forced us to tighten our belts, and we have worked harder in this new, leaner economy than ever before. The biggest, most newsworthy event this year was undoubtedly the attack on America in September, which has left a worldwide conviction that things are no longer the same as they were.

Although the spectre of worldwide recession and depression has loomed large, some recovery is anticipated.

Jill Hamlyn is MD of People Business

However, as all South Africans, Americans and Afghans know, life does carry on, even if it is a different life to the one we have been accustomed to. No matter how big the impact of such an event, the minutiae that make up the structure of day-to-day life still have to be attended to, which gives a blessed feeling of something approaching normality.

Even in the aftermath of 11 September, the South African economy still appears to be turning slowly. Although some may be disbelieving of this, considering that our currency has plunged again and our markets can best be described as unstable, it is worth considering any growth as an achievement in the face of weak economies worldwide and the prediction of global only for the middle of 2002. Although the spectre of worldwide recession and depression has loomed large, some recovery is anticipated. In SA, reports indicate that local inflation will continue to rise at about 5.5%, a relatively small figure by comparison to some other countries.

Despite the dire warnings of the doom mongers, there is still reason for optimism and, now more than ever before, we need to push forward and harness the new challenges that we face. The most important areas for IT can be summarised into three key areas.

General business and the market in SA

In each and every sector of the IT industry, the market has been severely challenged. A broad spectrum of the industry has had to respond to the gauntlet of survival that has been thrown down. Those that have risen to meet this challenge appear to be thriving in their race to beat current circumstances.

Theory has, by necessity, taken a back seat to the amount and quality of qualifications by experience (QBE) that is available to us now. Theories that are a couple of years old have little bearing and relevance to many present situations and many of us are experiencing a steep learning curve firmly based in reality rather than on knowledge to be found in textbooks. This is not to say that theory has lost its value, but that current situations demand their own, immediate response that may have no corresponding theoretical paradigm.

Efficiency, effectiveness and, most of all, a positive approach to overcoming obstacles that are continually being thrown in our path make for exciting times. The thrill of success awaits all who encapsulate and embrace current circumstances, and who ensure that the odds of failure are severely beaten down, while experiences garnered through a most rapid maturation process seep into the consciousness, attitudes and actions of those who have a passion for making things happen.

It is certain that if this attitude has not yet become prevalent, I foresee that individuals, teams, divisions and companies will adopt a significantly more proactive approach upon their return to the working environment after the Christmas break. If previous experience is anything to judge by, it is really going to be a matter of `adapt or die` for a number of organisations during the first quarter of next year. In return for this, companies can expect a significant return on this investment in the form of true, full-blown, priceless experience.

Supply and demand of IT personnel

There is one encompassing and overriding factor that is currently being faced by all IT personnel, namely, the changing of supply and demand for talent within IT. For those whose talents do not fall within the beam of a rapidly diminishing skills shortage, there is a superb opportunity for resilient individuals to re-assess and establish a more committed long-term purpose. Once this vision has been established, a greater appreciation of current circumstances will be enabled and facilitated which, in turn, will enhance the setting of shorter-term objectives.

For those people who possess skills that the market requires, there is both good and bad news. The top skills shortage in IT is by far leadership and management abilities, the skills that drive others and direct teams to success. However, the flip side of this particular coin is that there are a number of organisations that have a paucity of such skills but are also not able to attract, employ or retain the skills necessary to allow them to rise to the next level. This may become a really tragic scenario for a large amount of employees who, once again, could suffer through retrenchments due to human resource mismanagement.

Besides management and leadership skills, other skills needed fall into the sales, ERP and business arena. There is a desperate need for well-rounded individuals who possess strong business knowledge, effective people skills and a real appreciation for the benefits of technology.

Technical skills are still in demand, but a serious Catch-22 situation has developed. On the one hand, people with technical support skills and three or four years of experience are being hotly pursued by a majority of companies, while on the other, individuals who could fill this gap are languishing on the sidelines of the organisational structure. This is a terrible waste of human potential and in order to nip this in the bud, people development has to be taken seriously and initiative must become a watchword in the growth of skills from within.

Following on from this theme, this is truly the time for employers to appreciate the talent that is apparent at all levels of both the organisational structure and the greater external environment. Although a number of employers are taking advantage of an industry that is displaying little movement at present, thankfulness for a job when times are tough can quickly turn into a state of embitterment once the market starts moving again, as it will certainly begin to do. Now is the time to consolidate an attitude of appreciation and to build and grow a committed and focused team that will not let you down when the bells of opportunity resound again.

Salaries

Salaries are often the first to be affected by broader environmental factors, and this has certainly been the case this year. Traditional annual increases have certainly been curtailed, with some organisations implementing an across-the-board zero increase in pay, while others have adopted an average 8% pay hike. Although expecting pay rises, some hard hit sectors have had to settle for a cut in pay. A focus on direct relationship between performance management, incentives and increases has been adopted by many, while the concept of value-add has enjoyed an enhancement of integrity.

In many ways, 2001 can be viewed as the precursor to what may be expected in the coming year. A lowering of tolerance for those who seem content to simply sit by and bleat about circumstances that are correctly perceived as difficult by the majority can be expected as the focus shifts from situational observation and analysis to take a more hands-on approach. Acting and doing are going to take on an added importance in coming to terms with environmental demands, and now more than ever we need to remind ourselves of the concept of thinking globally and acting locally.

Things can only get better - definitely. Even if factors in the economic or political world should get worse, the resilience that we have built up over the last year will enable us to cope better and to rise above, rather than be pulled down by whatever situations we are faced with in the next 12 months.

I wish everyone a happy New Year and a wide-ranging vision for the future.

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