Sunday, February 13, 2011

Technology Aligned Teams vs. Platform Aligned Teams


As a consultant, I had the opportunity to work within a wide variety of organizations. From start-ups to Fortune 100; from banking to transportation. It was interesting to see the wide variety of organizational alignments devised by different companies in different industries. Despite the endless variety and nuance, there seemed to be a couple of common themes across companies despite the specific industry in which they operated.


Technology Aligned Teams

Large IT organizations are often divided into teams based on the technology they are responsible for supporting. A networking team manages switches and routers, a desktop team takes care of workstations, a storage team manages large disk arrays, SANs, and NAS, and so on.

Such an alignment used to make sense. The technologies being deployed were often new and poorly documented, products were complicated to setup and required a significant investment in technical knowledge, and diagnosing issues was almost a black art for some areas. This situation suggests the need to hire engineers who are narrowly focused on very specific technologies. And that's what many companies did. (And still do.)

The benefits and drawbacks to this approach are well known. Benefits are supposed to include cross-training, a deep bench, best-of-breed practices, and an enterprise-level perspective on architecture, procurement, and issue resolution. Drawbacks include IT departments requiring architecture review boards, one-size-fits-all configurations and change management windows that may not suit the needs of individual business unit. Implementations for fast moving products end up waiting in line behind slower business units, and unintentional dependencies emerge across logically separate product lines. For example; load balancers that are shared across multiple product lines. One product needs a load balancer change implemented, but must wait for the weekly change window; otherwise, other products could be negatively impacted by the 'unscheduled' change.

In reality, the cross-training seldom happens. Each team has one or two go-to people surrounded by a bunch of extra hands. The idea of having multiple network engineers is great, but when things are in the ditch, most companies grab the go-to person to save their hide. Over time, teams become increasingly focused on the technology they manage instead of the business products the technology is supposed to be enabling.


Platform Aligned Teams

An alternative approach in some organizations is to create mini-IT departments assigned to a specific product or business unit. The team might include a server and database administrator, a networking engineer, a web server expert, and other skills needed to support a particular platform or business unit. Many times, the people have multi-faceted skills like the combination UNIX/firewall/load-balancer/apache/networking administrator or the DBA/performance tuner/SAN/backup engineer.

Again, the benefits and drawbacks to this approach are also well known. Because this mini-IT group is often allowed to operate with more latitude compared to a centralized IT department, they are better positioned to respond to the needs of the business (read: customer).

While this approach has many benefits at a product or business unit level, analyzing the enterprise wide cost of such an approach can paint a costly picture. Different groups may select different vendors, economies of scale such as price negotiation are diminished, and not all mini-IT groups have the same level of skill.* Risk mitigation may require more focus to avoid the scenario where configurations introduced by one group have a very detrimental effect across an entire company. For example; not properly maintaining a strong security posture or disrupting a network routing algorithm.

* In the past, it was very difficult to find that magic collection of engineers that the wide variety of experience necessary to build a strong mini-IT group. The maturation of most products and the increasing number of renaissance engineers (engineers with skills across a wide variety of disciplines) has definitely improved the viability of this approach.


Summary

Between the two approaches described so far, my experience would suggest platform aligned teams are more practical and deliver better results for customers. I think this is especially true in a turnaround scenario (rescuing a failing division or subsidiary) as well as business units focused on growth or new markets. Products and business teams that exist in a saturated or slowly shrinking market might be okay with the traditional technology aligned approach -assuming the goal is to simply ride out a cash cow or avoid pursuit of significant strategic improvements in order to prepare for a sell-off.

Next time: What if there was an approach that combined the best of both worlds?