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Exactly the discussions I have in my firm as the financially responsible. We spend loads on run, change, manage the profolio agile (not even snarking on that, I

by wjnc 3y ago

Exactly the discussions I have in my firm as the financially responsible. We spend loads on run, change, manage the profolio agile (not even snarking on that, I’m pretty amazed at the delivery and how much of the delivery is adequately estimated well in advance). However… I as a financial have no clue how to do run/change and TCO and ABC consistently. We do ABC as the finance organization, but it lacks the TCO and run/change insights needed to help steer IT delivery. And obviously the managers whom IT spend mostly benefits are reluctant to show the benefits directly since hey, finance is all about cutting staff right? Time tracking is an organizational no go both culturally and historically. So how can we help bring those perspectives better into view but with a light hand? Any ideas much obliged.

williamcotton 3y ago
My dad professed managerial accounting and finance for most of his career. We’ve been talking about this a lot as it applies to the software industry and he offered too broad approaches: make ABC an almost daily routine, or a much easier approach, do periodic internal audits that get on the factory floor to actually see how engineers, product managers, EMs, etc, etc, spend their time during the day. My email address is my username at gmail and if you would be so obliged I would love to talk to you about this more!
- williamcotton 3y ago
  I mean, I could talk about this subject for awhile, but I would give EMs another task: do accounting and not just wrangling of the nerd herd. I consider myself a veteran of the nerd herd and take pride in such a label, even the wrangling, as it is generally an attempt to guide productive, creative and engaged engineers. I’ve also noticed a parallel between what’s called domain-driven design and ABC, namely, they are primarily concerned with a full understanding of the processes, events and activities. Agile has some tangential relationships as well and could possibly be used for the daily/weekly practice of ABC, but the problem with story points is that they also fail to capture the full costs! I’m just rambling and spitballing at this point as I’m currently at the stage where I’m noticing something and just tracking down clues! Hence, let’s have a call about this and brainstorm! I’m serious, I would enjoy it immensely!
  - wjnc 3y ago
    I will send you an email next week! Thanks a lot for reaching out and your enthusiasm. The part about making EMs responsible for the financial investment or at least some inkling of the cost/benefit part of change budget has been one we've started upon a few months back. I think that can be a rewarding trajectory, but to be honest - there is a chasm between the easy with which management controllers (my team) think about these things and boots on the ground type of work of keeping our delivery teams of say 10 programmers each working and communicating. I've learned that you shouldn't burden people managers with too much finance. Just like you shouldn't make people managers of finance people. (This somewhat in jest. We do geek out many levels of financial 'theory' above the rest of the people in regular departments. They talk sales growth, we talk the interest rates effect on return on capital invested.) I have a fear that piling finance on top of the people and systems responsibilities of the EM will not work out. At least the controllers should make it _easy_.

by wjnc 3y ago

williamcotton 3y ago

My dad professed managerial accounting and finance for most of his career. We’ve been talking about this a lot as it applies to the software industry and he offered too broad approaches: make ABC an almost daily routine, or a much easier approach, do periodic internal audits that get on the factory floor to actually see how engineers, product managers, EMs, etc, etc, spend their time during the day. My email address is my username at gmail and if you would be so obliged I would love to talk to you about this more!

williamcotton 3y ago
I mean, I could talk about this subject for awhile, but I would give EMs another task: do accounting and not just wrangling of the nerd herd. I consider myself a veteran of the nerd herd and take pride in such a label, even the wrangling, as it is generally an attempt to guide productive, creative and engaged engineers. I’ve also noticed a parallel between what’s called domain-driven design and ABC, namely, they are primarily concerned with a full understanding of the processes, events and activities. Agile has some tangential relationships as well and could possibly be used for the daily/weekly practice of ABC, but the problem with story points is that they also fail to capture the full costs! I’m just rambling and spitballing at this point as I’m currently at the stage where I’m noticing something and just tracking down clues! Hence, let’s have a call about this and brainstorm! I’m serious, I would enjoy it immensely!
- wjnc 3y ago
  I will send you an email next week! Thanks a lot for reaching out and your enthusiasm. The part about making EMs responsible for the financial investment or at least some inkling of the cost/benefit part of change budget has been one we've started upon a few months back. I think that can be a rewarding trajectory, but to be honest - there is a chasm between the easy with which management controllers (my team) think about these things and boots on the ground type of work of keeping our delivery teams of say 10 programmers each working and communicating. I've learned that you shouldn't burden people managers with too much finance. Just like you shouldn't make people managers of finance people. (This somewhat in jest. We do geek out many levels of financial 'theory' above the rest of the people in regular departments. They talk sales growth, we talk the interest rates effect on return on capital invested.) I have a fear that piling finance on top of the people and systems responsibilities of the EM will not work out. At least the controllers should make it _easy_.