As SA`s - and indeed the world`s - IT Industry continues to grow at breakneck speed, companies continue to face pressing questions regarding optimal utilisation of resources.
I firmly believe that the local IT industry, in particular, should have a long hard look at its utilisation of scarce resources - most notably human resources - if it is to become a true global player. Over the past months, some heavyweight names have joined the debate over intrinsic benefits of contractors versus permanent employees with many, it may be said, not seeing the wood for the trees.
Very little has been done to either quantify the benefit of contracting and, more importantly, even less has been done to identify the cause of the "permanent" staff problem.
Jill Hamlyn, MD, The People Business
A consultant from the recruitment division of one of the country`s largest diversified IT firms got the ball rolling in an article in a computer weekly publication. The virtues of contractors were espoused while permanent employees were slated. The author characterised the latter as inherently lazy and lacking in fundamental commitment and energy.
This was in stark contrast to the burgeoning IT "contracting" demographic, which was rated as superior in virtually every aspect in light of their "independence" and essentially pecuniary motivation.
This disparity between the two camps may well exist. However, very little has been done to either quantify the benefit of contracting and, more importantly, even less has been done to identify the cause of the "permanent" staff problem.
Stereotype
Aside from being counterproductive, the argument is perpetuating the so-called "theory X" stereotype of the lazy employee, who does everything in his power to neglect work.
The debate is an old one and should really be put to rest. I feel adamant that industry at large has lost sight of the essence of the argument, focusing too much on the problem and giving little thought to a lasting solution. Management - that is the real issue here.
Skills, whether permanent or contracted, are simply a resource and must therefore be managed in the best way possible; effective management must be considered as one of the primary causes of motivation and productivity problems. This provides an interesting corollary to theory X, in that given the right environment, people will strive to naturally do their best and assume responsibility for their own productivity.
It is ultimately up to managers to provide this environment.
Permanent versus contractor argument aside, the creation of such an environment will undoubtedly be beneficial to contractor and employee alike, not to mention a boon for any business.
In my opinion, management skills are necessary to create the backdrop for such a fundamental productivity paradigm shift. This has long been a headache for the skill-stretched IT sector which has, to its detriment, placed unequal emphasis on management proficiency on the one hand, and sales and technical skills on the other.
Too often management has got short shrift, resulting in technicians and sales staff crossing the great divide to management in droves, purely on the basis of their core skills.
Few companies have augmented this base-level know-how with any kind of management training.
The result: poor management of resources, with human resources heading the list of "hard done bys".
We have to look at management to motivate under even the toughest circumstances; after all, they are paid a premium to do just that. There is certainly a rapidly growing chorus of IT players calling for enhanced management skills. The theory of management in particular is a key area of concern, and one in which there is a marked deficiency in the global context.
Experience
This said, theory is no substitute for hardcore experience. Experience, in turn, is rarely of any true value unless the incumbent manager has had the rare privilege of high-quality mentorship.
Financial Mail (1999/08/27) reported that in the US and Europe, a skilled older generation has been singled out for its depth of insight, with middle managers being brought back into the fold as project managers and mentors.
Steinway, the world`s leading piano-maker, was cited as a pioneer in this respect. Retired piano-makers are called on by the company to become mentors to less experienced staff. This, says Suresh Kota, a professor at Washington University, has allowed Steinway to retain its status as world leader in piano manufacture over the last century.
Such success through utilisation of experience and established know how, could safely be extrapolated to a range of areas, with management and, more specifically, management in the IT field being no exception.
Once the good mentor, good manager cycle is broken, it becomes increasingly difficult to restart. Many companies with mature, insightful coaching abilities are now successfully positioning themselves to fill this gap, providing management mentorship to a number of "blue chip" IT multinationals, which have acknowledged the benefits to be reaped from strong leadership.
Rewards are waiting to be reaped from organisations that can make a difference within the internal communication strategy arenas. Basic communication and unbiased feedback are really what is needed in the identification of opportunities to improve management skills.
Outside facilitators allow staff to speak freely and voice their concerns with anonymity and impunity to an independent third-party. Real problems can then be identified and this information can be passed on through an unbiased conduit. Once obtained, the raw data can be processed, analysed and the results passed on to management, giving an accurate picture of the state of the company, from an internal perspective.
Information is indeed power, and never before has it been more critical for managers to be better informed. Companies that are now ready to look outward to establish and enhance their management expertise will undoubtedly survive and grow into the new millennium. In correctly pursuing this new focus, the tired permanent-contractor debacle may finally be laid to rest.

