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- 7. IT Manager’s Handbook Third Edition This page intentionally left blank IT Manager’s Handbook Getting your new job done Third Edition Bill Holtsnider Brian D. Jaffe AMSTERDAM • BOSTON • HEIDELBERG • LONDON NEW YORK • OXFORD • PARIS • SAN DIEGO SAN FRANCISCO • SINGAPORE • SYDNEY • TOKYO Morgan Kaufmann is an imprint of Elsevier Acquiring Editor: Andrea Dierna Development Editor: Robyn Day
- 8. Project Manager: Jessica Vaughan Designer: Joanne Blank Morgan Kaufmann is an imprint of Elsevier 225 Wyman Street, Waltham, MA 02451, USA # 2012 William Holtsnider & Brian D. Jaffe. Published by Elsevier, Inc. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or any information storage and retrieval system, without permission in writing from the publisher. Details on how to seek permission, further information about the Publisher’s permissions policies and our arrangements with organizations such as the Copyright Clearance Center and the Copyright Licensing Agency, can be found at our website: www.elsevier.com/permissions. This book and the individual contributions contained in it are protected under copyright by the Publisher (other than as may be noted herein). Notices Knowledge and best practice in this field are constantly changing. As new research and experience broaden
- 9. our understanding, changes in research methods or professional practices, may become necessary. Practitioners and researchers must always rely on their own experience and knowledge in evaluating and using any information or methods described herein. In using such information or methods they should be mindful of their own safety and the safety of others, including parties for whom they have a professional responsibility. To the fullest extent of the law, neither the Publisher nor the authors, contributors, or editors, assume any liability for any injury and/or damage to persons or property as a matter of products liability, negligence or otherwise, or from any use or operation of any methods, products, instructions, or ideas contained in the material herein. Library of Congress Cataloging-in-Publication Data Holtsnider, Bill, 1956- It manager’s handbook : getting your new job done / Bill Holtsnider, Brian D. Jaffe. – 3rd ed. p. cm. Summary: “This book provides a practical reference that you will return to again and again in an ever- changing corporate environment where the demands on IT continue to increase. Make your first 100 days really
- 10. count with the fundamental principles and core concepts critical to your success as a new IT Manager outlined in this valuable resource. The book also discusses how to work with your customers, manage your budget, develop an overall IT strategy and demonstrate the value of IT to the company”– Provided by publisher. ISBN 978-0-12-415949-5 (pbk.) 1. Industrial management–Data processing. 2. Management information systems. I. Jaffe, Brian D. II. Title. HD30.2.H657 2012 004.068–dc23 2011044174 British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library. ISBN: 978-0-12-415949-5 Printed in the United States of America 12 13 14 15 16 10 9 8 7 6 5 4 3 2 1 For information on all MK publications visit our website at www.mkp.com http://www.elsevier.com/permissions http://www.mkp.com
- 11. For M & D —B.H. For Jenine —B.D.J. This page intentionally left blank About the Authors Bill Holtsnider is an experienced writer, educator, and software professional with more than 27 years of experience working in the computer industry. His IT expertise includes working in such diverse areas as stock portfolio management, identity management, Web analytics, and software develop- ment. He is the author of six books and a wide range of technical and marketing documentation. Brian D. Jaffe is an IT professional who has worked for several Fortune 500 companies including Bristol-Myers Squibb, Time Warner, Philip Morris, and The Interpublic Group of Companies. Cur- rently he is Senior Vice President for Global IT at McCann Worldgroup in New York City, one of the country’s leading advertising agencies. His articles have
- 12. appeared in Computerworld, InfoWorld, eWeek, and The New York Times, and he is the editor of Thanksgiving Tales: True Stories of the Holiday in America. vii This page intentionally left blank Brief Table of Contents About the Authors vii Key Changes for This Edition xxi Preface xxiii CHAPTER 1 The Role of an IT Manager 1 CHAPTER 2 Managing Your IT Team 31 CHAPTER 3 Staffing Your IT Team 65 CHAPTER 4 Project Management 103 CHAPTER 5 Software, Operating Systems, and Enterprise Applications 135 CHAPTER 6 Managing the Money 161 CHAPTER 7 Getting Started with the Technical Environment 189
- 13. CHAPTER 8 Security and Compliance 205 CHAPTER 9 Disaster Recovery 247 CHAPTER 10 Working with Users 263 CHAPTER 11 Connectivity: Social Media, Handhelds, and More 287 Glossary 305 Index 317 ix This page intentionally left blank Contents About the Authors ...................................................................................... ......... ................................ vii Brief Table of Contents ............................................................................................... ......................... ix Key Changes for This Edition.................................................................................... ........................ xxi
- 14. Preface ............................................................................................... ............................................... xxiii CHAPTER 1 The Role of an IT Manager............................................................................... 1 1.1 Just What Does an IT Manager Do? .......................................................................... 2 Why All That Change and Flexibility Is Good.......................................................... 2 Why All That Change and Flexibility Is Bad ............................................................ 2 1.2 Managers in General................................................................................... ................ 3 Definition of a Manager ............................................................................................. 3 Styles of Management ............................................................................................... . 3 Pros and Cons of Being a Manager: Reasons to Become a Manager, and Reasons Not to Become One...................................................................................... 5 The Hidden Work of Management............................................................................ . 6
- 15. Resentment toward Management ............................................................................... 7 Babysitting versus Managing ..................................................................................... 7 Politics................................................................................... ...................................... 7 Managing in Four Directions............................................................................... ....... 7 1.3 The Strategic Value of the IT Department ................................................................ 8 Application Development versus Technical Operations............................................ 9 IT Department Goals ............................................................................................... . 10 The Value of IT Managers ....................................................................................... 10 1.4 Developing an IT Strategy ....................................................................................... 10 Determine Who Your Team Members Are.............................................................. 11 Determine How Important Technology Is to Your Organization ........................... 11
- 16. Determine Who Your Customers Are and What Their Needs Are......................... 12 Keep Your Department Central to the Company’s Operations............................... 12 1.5 Leadership versus Management ............................................................................... 13 1.6 Starting Your New Job ............................................................................................. 14 The First Day ............................................................................................... ............. 14 Meeting the Staff ............................................................................................... ....... 14 A Few Ideas for What to Say to Break the Ice........................................................ 15 Some Don’ts..................................................................................... ......................... 15 One-on-One Meetings......................................................................... ........ .............. 15 What to Say to Those Who Wanted Your Job and Didn’t Get It ........................... 16 Establish a Relationship with Your Manager and Your Peers
- 17. ................................ 17 Learning the Landscape: Key Users and Key Applications .................................... 18 xi 1.7 The First 100 Days ............................................................................................... .... 20 No Organization Is Perfect ....................................................................................... 20 Quietly Advertising What You Bring to the Table ................................................. 21 Projects in Progress and Projects on the Horizon.................................................... 22 Is the Status Quo Good Enough? ............................................................................. 23 People to Meet and Know ........................................................................................ 24 Quick Introductory Meetings................................................................................. ... 24 Human Resource Issues ............................................................................................ 25
- 18. Budgeting ............................................................................................... ................... 26 Making Those First Decisions................................................................................ .. 26 1.8 Two IT Departments—What Happens If Your Company Merges with Another?................................................................................. ........................... 27 CHAPTER 2 Managing Your IT Team................................................................................. 31 2.1 Keeping Employees Focused................................................................................... . 32 Establish Priorities ............................................................................................... ..... 32 Communicate with Your Team ................................................................................ 32 Company Mission, Vision, and Values .................................................................... 34 Be as Clear as Possible about Your Real Priorities................................................. 35 Avoid Burnout in Your Employees.......................................................................... 35
- 19. Make Your Employees Aware of the Dangers of Burnout ..................................... 36 Deal with the Situation ............................................................................................. 36 Managing Remote Workers (or Teleworkers) ......................................................... 37 2.2 Employee Training ............................................................................................... .... 39 Cost ............................................................................................... ............................ 39 Need ............................................................................................... ........................... 39 Scheduling Demands ............................................................................................... . 40 Employee Morale.................................................................................... .................. 40 How Do You Know When Your Employees Need Training? ................................ 40 Certification ...............................................................................................
- 20. ............... 41 What If the Employee Takes a Training Class and Then Uses His New-Found Skills to Find Another Job? ...................................................................................... 41 Nontechnical Training .............................................................................................. 42 Maximizing the Value of Training........................................................................... 42 2.3 Employee Performance............................................................................ ................. 43 Performance Reviews ............................................................................................... 43 Key Areas of Evaluation .......................................................................................... 44 Specific Evaluation Statements ................................................................................ 47 Guidelines for Reviews.................................................................................. ........... 48 Negative Reviews ............................................................................................... ...... 49
- 21. Have Employees Review Themselves ..................................................................... 50 360 Reviews.................................................................................. ............................ 51 xii Contents How to Conduct the Actual Review Discussion...................................................... 52 Development Plans and Goals.................................................................................. 52 Salary Review ............................................................................................... ............ 53 Disciplinary Problems and Terminations ................................................................. 54 2.4 Generational Issues at Work..................................................................................... 57 Managing across Generations............................................................................. ...... 58 CHAPTER 3 Staffing Your IT Team.................................................................................... 65
- 22. 3.1 Why IT Managers Need to Deal with Hiring People .............................................. 65 Human Resources Department’s Role ..................................................................... 66 Justifying a Hire........................................................................................ ................ 67 Start with Internal and External Referrals ............................................................... 68 Internal versus External Hires .................................................................................. 68 Should You Hire a Full-Time Employee or a Consultant? ..................................... 70 3.2 Write a Position Description .................................................................................... 74 Position Descriptions versus Contracts .................................................................... 75 General Requirements.......................................................................... ..................... 75 Advertising Options ............................................................................................... ... 77 3.3 Recruiters ............................................................................................... ................... 79
- 23. Finding the Right Recruiter ...................................................................................... 81 3.4 Selecting Candidates.............................................................................. ................... 83 Reviewing Résumés.................................................................................. ................ 83 Telephone Screening................................................................................ ................. 84 At What Level Should I Interview? ......................................................................... 84 Narrowing Down the List ......................................................................................... 84 General Interview Guidelines ................................................................................... 86 Prepare a List of Questions ...................................................................................... 87 Who Else Should Interview a Candidate? ............................................................... 88 Key Concepts for a Good Technical Interview ....................................................... 89 Rank Criteria...................................................................................
- 24. .......................... 93 The Value of Certification............................................................................ ............ 94 Education ............................................................................................... ................... 95 Checking References ............................................................................................... . 97 Common Hiring Mistakes................................................................................. ........ 98 Offering the Correct Salary for an IT Position ........................................................ 99 CHAPTER 4 Project Management ................................................................................... 103 4.1 Projects and Project Management: A Quick Overview ......................................... 104 Different Kinds of Projects................................................................................... .. 104 The Value of Project Management ........................................................................ 104 Five Key Phases to a Project.................................................................................. 104
- 25. Do You Have to Be a Certified Project Manager to Run a Project? .................... 105 xiiiContents The Project Management Institute (PMI) .............................................................. 105 A Project Management Office................................................................................ 106 4.2 Phase One: Scope the Project............................................................................... .. 106 Clearly Define the Project’s Objective and Scope to Avoid Scope Creep ........... 106 Department versus Company Objectives ............................................................... 107 Get Proper Sponsorship for the Project.................................................................. 107 Identify the Stakeholders ........................................................................................ 108 Identify the Constraints, Interdependencies, and Risks ......................................... 109 The Project Charter....................................................................................
- 26. ............. 110 Get Historical Perspective ...................................................................................... 110 4.3 Phase Two: Develop a Project Plan ....................................................................... 111 Three Critical Components to Any Project............................................................ 111 Write the Project Plan with the Closeout Report in Mind .................................... 112 Time Estimates ............................................................................................... ........ 112 Resources Required: Employees (Internal and External to IT)............................. 113 Money ............................................................................................... ...................... 114 Roles and Responsibilities...................................................................... . ............... 115 Multiple Projects................................................................................... .................. 115 4.4 Phase Three: Launch the Project............................................................................ 116
- 27. Range of Launch Options................................................................................... .... 116 Stage a Kick-Off Meeting ...................................................................................... 116 4.5 Phase Four: Track the Project’s Progress .............................................................. 117 Microsoft Project ............................................................................................... ..... 117 Other Project Management Tools........................................................................... 118 Gantt Charts and Time Lines ................................................................................. 118 PERT Charts and Critical Paths ............................................................................. 118 Project Milestones............................................................................... .................... 119 Updates to Management and the Team.................................................................. 120 4.6 Phase Five: Close Out the Project.......................................................................... 121 Writing a Closeout Report..................................................................................... . 121
- 28. 4.7 Decision-Making Techniques ................................................................................. 122 Four Types of Decision-Making Methods ............................................................. 122 4.8 What to Do If/When the Project Gets Off Track................................................... 123 Some Issues out of Your Control ........................................................................... 124 When a Project Gets behind Schedule ................................................................... 124 Your Project Is Costing More Than Expected....................................................... 125 4.9 Useful Project Management Techniques................................................................ 126 Project Teams ............................................................................................... .......... 126 Create a War Room ............................................................................................... . 126 Formalized Project Frameworks............................................................................. 127 xiv Contents
- 29. Participate in the Project Yourself ......................................................................... 127 Offer Project Perks ............................................................................................... .. 127 Give Your Project a Code Name............................................................................ 127 Productive Project Meetings................................................................................. .. 128 4.10 Funding Projects ............................................................................................... ...... 130 Estimating Costs: Go High..................................................................................... 130 Projects Always Cost More Than Estimated ......................................................... 131 Exactly Who Is Going to Pay for It? ..................................................................... 131 Justifying the Costs...................................................................................... ........... 132 4.11 Multiple Projects: How to Juggle Them Well ....................................................... 132
- 30. You Will Have Multiple Projects........................................................................... 132 4.12 Dealing with Non-IT Departments on a Project .................................................... 133 Motivating Employees outside of Your Department ............................................. 133 Who Is in Charge? ............................................................................................... ... 133 CHAPTER 5 Software, Operating Systems, and Enterprise Applications ............................. 135 5.1 Types of Software................................................................................. .................. 135 5.2 Operating Systems ........................................................................................ ....... ... 137 Windows ............................................................................................... .................. 137 Mac........................................................................................ .................................. 137 Unix Variants and Linux ........................................................................................ 138 Choosing an Operating System .............................................................................. 138
- 31. Multiple Operating Systems ................................................................................... 139 5.3 Open Source.................................................................................... ........................ 141 Definition ............................................................................................... ................. 141 Cost ............................................................................................... .......................... 142 5.4 Managing Software................................................................................. ................ 142 Total Cost of Ownership (TCO)............................................................................. 142 Software Management Techniques ........................................................................ 142 Software Licensing ............................................................................................... .. 144 Licensing Issues ............................................................................................... ....... 145 5.5 Cloud Computing..............................................................................
- 32. ...................... 148 The Many Flavors of Cloud Computing ................................................................ 148 Private versus Public Cloud.................................................................................... 149 Considerations When Moving to the Cloud........................................................... 150 5.6 Enterprise Applications............................................................................ ............... 152 E- mail........................................................................................ .............................. 152 Managing E-mail ............................................................................................... ..... 153 Unified Messaging ............................................................................................... ... 155 Directory Services.................................................................................. ................. 156 xvContents
- 33. 5.7 Enterprise Resource Planning (ERP) ..................................................................... 157 The Value of ERP Software ................................................................................... 157 General ERP Implementation Issues ...................................................................... 157 Costs of Implementing ERP ................................................................................... 158 Major Changes Required ........................................................................................ 158 It Isn’t Only IT’s Decision ..................................................................................... 158 Disadvantages to ERP........................................................................................ ..... 159 CHAPTER 6 Managing the Money ................................................................................... 161 6.1 The Budgeting Process ........................................................................................... 161 Possible Budget Items................................................................................ ...... ....... 162 Chargebacks—Who Really Pays? .......................................................................... 164 Reviewers for Your
- 34. Budget.................................................................................... 164 Estimating (and Overestimating) Your Numbers .................................................. 165 Getting Approval and Defending Your Budget ..................................................... 165 During the Year: Tracking and Revising Your Budget......................................... 166 6.2 The Difference between Capital Expenditures and Operating Expense Items ............................................................................................... .......... 167 Capital Expenditure Details.................................................................................... 167 Check with Your Company’s Policies ................................................................... 168 Gray Areas ............................................................................................... ............... 168 6.3 Lease versus Buy: Which One Is Better? .............................................................. 168 Leasing ............................................................................................... ..................... 169
- 35. Who Makes This Decision?................................................................................ .... 170 6.4 Other Budgeting Factors to Consider..................................................................... 170 Growth of Your Department’s Workload .............................................................. 170 Technological Change ............................................................................................ 171 Staff ............................................................................................... .......................... 171 Software Maintenance ............................................................................................ 171 Hardware Maintenance ........................................................................................... 172 6.5 Managing Vendors.................................................................................. ................ 173 Establish a Relationship............................................................................ .............. 173 Help Your Vendors..................................................................................
- 36. ............... 174 Request for Proposals ............................................................................................. 174 Get Multiple Bids ............................................................................................... .... 175 Set Up a Trial....................................................................................... ................... 175 Reviewing Contracts with Vendors........................................................................ 175 Evaluating Alternatives............................................................................. .............. 176 Set Up a Matrix ............................................................................................... ....... 177 6.6 Managing the Money during Difficult Times ........................................................ 179 xvi Contents Managing Costs ............................................................................................... ....... 179
- 37. Leverage IT for Increased Business Value ............................................................ 180 Demonstrating Leadership.............................................................................. ........ 181 6.7 Outsourcing and Offshoring ................................................................................... 182 Offshore Outsourcing Overview............................................................................. 182 Which Functions to Outsource ............................................................................... 184 Does Outsourcing Make Sense? ............................................................................. 184 CHAPTER 7 Getting Started with the Technical Environment ............................................ 189 7.1 The Technical Environment ................................................................................... 189 What Do We Have Here?...................................................................................... . 189 Define Your Scope ......................................................................................... ...... .. 190 The Elements ............................................................................................... ........... 190
- 38. Tools for Tracking the Technical Environment..................................................... 194 The Value of Good Infrastructure Documentation ................................................ 195 What You May Find........................................................................................ ....... 196 7.2 Understanding the User Environment .................................................................... 196 7.3 TCO and Asset Management: What Are They? .................................................... 196 Total Cost of Ownership ........................................................................................ 197 Asset Management............................................................................ ...................... 198 7.4 Standards ............................................................................................... .................. 199 Issues That Users Care About ................................................................................ 199 Issues That IT Cares About .................................................................................... 200 Standards for IT ...............................................................................................
- 39. ....... 201 7.5 Technology Refreshing............................................................................... ............ 201 CHAPTER 8 Security and Compliance ............................................................................. 205 8.1 How We Got Here ............................................................................................... ... 206 Get Perspective ............................................................................................... ........ 206 Computer Security Themes .................................................................................... 207 8.2 Managing Security ............................................................................................... ... 209 Action 1: Evaluate Your Environment’s Needs, Exposures, and Defenses.......... 209 Action 2: Get Upper Level Management Buy-In .................................................. 212 Action 3: Mitigate the Risks................................................................................... 212 Action 4: Work with Users to Make Everyone More Secure ............................... 213
- 40. Action 5: Remember That Security Is an Ongoing Process .................................. 214 8.3 Security Solution s and Technologies ..................................................................... 214 Tracking and Controlling Access ........................................................................... 214 Authentication......................................................................... ................................ 219 Security Defenses............................................................................. .... ................... 220 Security Incident Response .................................................................................... 223 xviiContents
- 41. 8.4 Types of Threats ............................................................................................... ...... 224 Malware.................................................................................. ................................. 224 Phishing and Social Engineering............................................................................ 225 8.5 Compliance and IT ............................................................................................... .. 226 Overview ............................................................................................... .................. 226 Victims of Non- Compliance............................................................................. ...... 227
- 42. 8.6 The Rules ............................................................................................... ................. 227 Sarbanes– Oxley...................................................................................... ................. 227 Health Insurance Portability and Accountability Act (HIPAA) ............................ 228 Basel II ............................................................................................... ..................... 229 SB- 1386....................................................................................... ............................ 230 Massachusetts Data Protection Law....................................................................... 230 Fair and Accurate Credit Transactions Act (FACTA)........................................... 231
- 43. Gramm–Leach– Bliley...................................................................................... ....... 231 U.S. Securities................................................................................ ......................... 232 Patriot Act ............................................................................... ................ ................ 232 Dodd–Frank Act......................................................................................... ............. 233 Office of Foreign Assets Control (OFAC)............................................................. 233 CLERP-9 (Australia) .............................................................................................. 233 Personal Information Protection and Electronic Documents Act (PIPEDA)........ 233
- 44. Privacy and Electronic Communications Directive (European Union)................. 234 Data Protection Directive (European Union)......................................................... 234 8.7 How to Comply with the Rules.............................................................................. 234 Document the Policies ............................................................................................ 235 Identify Control Mechanisms ................................................................................. 236 Educate Employees............................................................................... .................. 236 Maintain Evidence ............................................................................................... ... 236
- 45. 8.8 Hidden Benefits of Compliance ............................................................................. 237 The Hidden Benefit of Documentation .................................................................. 237 The Hidden Benefit of Control Mechanisms ......................................................... 237 The Hidden Benefit of Educating Your Employees .............................................. 237 Hidden Benefits of Maintaining Evidence............................................................. 238 8.9 Methodologies and Frameworks............................................................................. 238 IT Governance ............................................................................................... ......... 238 Committee of Sponsoring Organizations (COSO)................................................. 239
- 46. Control Objectives for Information and Related Technology (COBIT) ............... 239 IT Infrastructure Library (ITIL) ............................................................................. 240 Capability Maturity Model Integration (CMMI) ................................................... 240 International Organization for Standards (ISO 9000)............................................ 240 Six Sigma ............................................................................................... ................. 241 xviii Contents 8.10 It’s Not Just Regulatory Compliance ..................................................................... 242 Electronic
- 47. Discovery................................................................................ ............... 242 Information and Records Retention ....................................................................... 242 Working with Auditors ........................................................................................... 242 Disaster Recovery and Business Continuity .......................................................... 243 Definition of Policies and Procedures.................................................................... 243 Outsourcing ............................................................................................... .............. 244 CHAPTER 9 Disaster Recovery ....................................................................................... 247 9.1 Defining the Scope ............................................................................................... .. 248
- 48. Key Questions ........................................................................................... .... .......... 248 Recovery Time and Recover Point Objectives ...................................................... 249 Disaster Recovery Committee ................................................................................ 249 Application Assessment............................................................................. ............. 250 The Value of Your Data ......................................................................................... 252 9.2 Creating a Disaster Recovery Plan......................................................................... 253 Communication Plan........................................................................................ ....... 253
- 49. Documentation ............................................................................................... ......... 254 Real Estate and IT Facilities .................................................................................. 254 Off-Site Storage of Data........................................................................................ . 256 Hardware Availability............................................................................. ................ 257 Regular Updating and Testing................................................................................ 257 After the Disaster.................................................................................. .................. 259 Regional and Catastrophic Disasters
- 50. ...................................................................... 25 9 The ACT Model..................................................................................... ................. 259 9.3 A Word about Incident Response, Business Continuity, and Disaster Recovery ............................................................................................ 260 9.4 The Hidden Benefits of Good Disaster Recovery Planning .................................. 261 CHAPTER 10 Working with Users.................................................................................. ... 263 10.1 Relationships with Users ........................................................................................ 263 Who Are Your Users? ............................................................................................ 264
- 51. Find Out Who Your Department Thinks Its Users Are......................................... 264 Find Out Who Your Boss Thinks Your Users Are................................................ 265 Meet the Users ............................................................................................... ......... 265 Being Available and Reachable ............................................................................. 266 Sharing Information ............................................................................................... . 266 Collecting Information............................................................................. ............... 267 Proactive