Turning around IT

A teaching case by Prof Sanjiva Shankar Dubey

{ Prelude : This story is about a client situation when a large project is being executed and even after
one year of contract no significant progress was visible. The client senior management were very
unhappy with the situation. The client had taken a decision to outsource their IT function to a leading
IT vendor yet there was huge backlog and dissatisfaction. In order to address the situation the IT
vendor brought a former consultant to take over as Crisit Manager (manager during critical
situation) . As the story unfolds the readers are posed certain questions that will help their leaning.
Such situation are very common in IT function and this story is great example of manage the
situation inspired by real event }

Part 1
Unhappiness Galore

“ I can be very harsh to UCC and may even recommend the chairman to scrap the contract” Said Mr
Narayan Jaiswal President of Vayutel . He was visibly angry with the non-performance of the
vendor, a very reputed name in the IT industry. He then tapped the conference table twice showing
his extreme displeasure.

It was a sweaty July afternoon of Indraprastha, the national capital of Bharatvarsha a country
situated somewhere in south East Asia. The entre team was called from various parts of the country
and the world to address the messy situation of major IT Outsourcing project worth 2.5 B USD.

This type of strong reaction from the President of Vayutel in front of the senior leaders of UCC was
very uncommon.

Everyone was drowned into stunned silence. The UCC (Universal Computer Corporation, Inc) team
lead by Hanish Sahtrabuddhe (HS for his colleagues) were seated on the other side of the table.
They were apprehensive as well as under stress while attending this meeting. But this was not the
first time such reaction from client Vayutel has happened. Many have attended similar storming
meeting in the past and were somewhat of the belief that this project, like many others , in IT
industry will be soon be declared a troubled project and would go to termination, en-cashing of bank
guarantee and may follow the route of arbitration. Some of the senior managers of UCC were of the
view that legal cell of UCC should be immediate be involved so that when client abruptly
terminated the contract then termination clauses can be enforced to recover some lost money.
Some other managers who believed in God opined that ultimately a way out will be found by the
senior management of UCC and Vayutel over dinner in the Chaprauli Office near TUBKU Minar .

Vayutel, in 2005 was a fast upcoming telecom company in Indraprastha providing mobile telephony
and land line services. While mobile phones subscriber numbers were increasing fast, it was the
good old land line connection provided by Vayutel that was the real profitable with Average revenue
per user (ARPU) close to RS 1100 as compared to mobile which was around Rs 400.

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These were the days of massive growth of telecom sector around 2005 -2006 period. UCC had signed
a 10 years contract with Vayutel to provide IT services on Opex model1 linked with the actual
revenue of Vayutel. The risk and reward was to be shared by the vendor i.e. UCC. This model when
announced last year was touted to be first of its kind (FOK) in telecom world and accepted with lots
of apprehension. (Later HBR wrote two cases studies on this unique arrangement ).

One thing was certain that the failure of this Opex model would be black mark both for Vayutel and
UCC, hence lots of attention was given in the IT world. As it happens in several path braking projects
the execution has its own challenges and requires much more effort, sweat and long hours by
people on the ground. Many of these workers remains unrecognized and unnoticed.

It would be fair to mention that UCC was not shying away in providing resources by flying in a
number of expat experts to Indraprastha who were all camped in famous seven star hotel on Sadar
Marg. But these expat expert had no clue of the local conditions, culture and people. In addition
these expensive resources were draining the project profitability. Many of them has lots of free
time and were enjoying the Sun and the pool side of the seven star hotel sharing the name of the
famous mausoleum at Agra.

“ Hanish, we have lost nearly three years, waiting for IT to bring in next generation of capabilities.
But nothing has happened so far. Last one year UCC progress is not worth mentioning and previous
two years were lost by Vayutel in deciding the vendor. The moment we decided to outsource to UCC
we stopped making any investment in IT and by the time the contract was sealed we lost two years.
Our business is not able to grow due to poor IT support. Our provisioning of land line, leased lines
and enterprise services required more IT support. Our customers are very demanding. We want our
customers to be long term loyal. Hanish, I have called you to see the situation and tell us how do we
recover from here. This project so far heading for a complete failure!”

Meanwhile a chart was put up on the screen showing status of various projects (see exhibit A just a
representative one), most of them were in red, delayed or showing in complete.

There were all together 200 projects of various types, size and technology platform. Vayutel was
growing organically as well as through acquisition. Their IT systems in all their circles were different
and decentralized. These circles were independently led by a CEO and local IT was reporting to the
Local CFO. The corporate CIO was at best an advisor and soothsayer who used to give occasional
guidance, send white papers and call for training programs few times a year.

But with UCC getting the contract and carrying a brief to transform the Vayutel IT, they were trying
to put together centralized IT. This approach was getting good response but was slow in
implementation. Pushing for centralization by UCC was not helping as there was huge back log of
project requests championed by Circle CEOs who would like their projects to be taken on priority. It
was like changing an aircraft engine while on flight, no pilot will ever allow!

I was now the turn of Hanish to speak . “ Mr Jaiswal We are equally concerned and as first step we

1
Opex model, all services and hardware, software is charged as rent for the period of the contract .
Note: Created for class discussion for learning purposes only, not to be shared outside the class room where
it has been distributed. All characters, events and companies are fictitious . Any resemblance is purely
coincidental

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have put in PMO manager who will drive all projects . His name is Jeevanand Prasad Nayaran Singh
Jigyasu in short Jeeva . He has done the in-depth study and has come out with some plan .

Jeeva Why don’t you speak now?” Hanish said

Jeeva got up to speak. He put up a slide. The slide has just three lines

1. Where are we? Assessment of the current

2. Where do we want to be ? Target and Priorities

3. How to get there? Plan

He said, “We all know where we are, we just need to discuss the item 2 and 3. “

Then he asked those present in the conference room.……

Case Question 1

1. What would have Jeeva asked?

2. What are the key problems that have led to this situation?.

Exhibit A : Project Status as on 06/2005 (representative status , all project can not be shown
due to client confidentiality )

Serial Project Name Status Cause

number
1 Rapid provisioning Delayed Requirement change
2 GIS Mapping of towers and Delayed Software issue
fibre
3 Call Flow management Delayed Lack of staff available
for training
4 Centralized Billing Delayed Legal objection on
some of the features
from other Business
Units
…
…
205 Automated recharge using Delayed Contractor not able to
SMS complete the work

Turning around IT

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 Turning around IT
Part 2

A day Before

Jeeva was in the management consulting Division of UCC. Not connected with Vayutel directly but
knew very well what was going on the sixth floor of FLD Kerasilo Tower. He was initially responsible
for doing the first consulting assignment to develop processes for Vayutel when Vayutel was just
having a customer base of 100,000 and wanted to grow to 1 million.

Jeeva was the early mover and door opener for UCC through consulting studies not worrying too
much about the hard core IT implementation that his consulting studies would lead to. Sometimes
either clients or his colleagues would seek his help to iron out any management level problem that
the account may have developed.
He had become strategic thought leader and no desire to go back to day to operational level
transaction oriented work. Some things which he had left decades ago. If asked he would hum…छोड
आये हम वे गलिय ां .... In-between he had also moved out do a entrepreneurial stint as a
founder CEO of two start-ups but during dot com burst he had to change his track. He was invited by
UCC to join back and a suitable role was being looked for him.

But Jeeva thanks to his IT Consulting back ground was self-starter, Problem solver and looking at
the big picture for organization interest covering people, process and technology transformation.

However, Vayutel project was one of its kind where the IT scope was unlimited and UCC was to be
paid a fraction of Vayutel revenue for doing everything in IT . UCC were to act like he IT
department of Vayutel. There were not many such projects executed by IT companies on Opex
model contract hence the skills to manage such projects was far and few. Vayutel Project was in
crisis and as said by someone2 that one should not waste a crisis from acting.

UCC was to deliver all IT requirements that included software development projects, ERP and CRM
installation, supply of hard ware, Data centre equipment like servers, racks, access control and
software licences. Vayutel was to give space, air conditioning, power and telecom connectivity (not
even routers and switches!). Even 60 odd third party contract which Vayutel earlier had with other
IT companies were transitioned to UCC . Many of these IT companies were competing with UCC in
Indian market and some holding a grudge for not winning the contract. They would delay the
delivery of equipment (for example HQ enterprise Or provide poor support like Pragul database
suppier ) . In addition Indian IT industry was not equipped with enough Telecom domain personnel
as this sector had recently been freed from governmental control.

As happens in IT companies very often when a new contract is signed it is staffed with novices as
they are the one available in abundance because experts would always be engaged in existing
project. IT professionals are also very choosy of location (read they prefer overseas!) and would not
like to get relocated to Delhi and work out of poorly provided Okhla offices in comparison of cool
climate of Bengulure and Pune and nice organised campus. UCC team was also divided into various

2
You never let a serious crisis go to waste. And what I mean by that it's an opportunity to do things you think you could not do
before. ………………Rahm Emanuel https://www.brainyquote.com/quotes/rahm_emanuel_409199

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towers (competency ) each representing the interest of various business units. So mails were being
tossed around to each other delaying the process. Jeeva has named this phenomenon as मे ि मेि
क खे िो खेि !

Vayutel IT leadership on the other hand had smartly retained the senior and experienced IT
personnel (good Ones) and transitioned only lower and working level people whom they considered
not very well. Vayutel IT team was never happy with the outsourcing decision to UCC as it was
reflecting on their capability and also had taken aware the power. Consequently the retained IT
team of Vayutel was out to prove that outsourcing is poor decision thrust by management. They
wanted to reach quickly to a situation where it becomes obvious that UCC cannot do the job. If that
happens Vayutel IT team would become more valued within their organization.

Meanwhile the transitioned IT personnel from Vayutel were taking time to settle in UCC MNC
environment of matrix and competitive culture. Many especially those in Vayutel remote circles
were still not sure who is boss? Is it the IT head from Vayutel (retained) or UCC People
manager/competency leader sitting in Bengaluru, Chennai or Delhi whom he/she has never met!
The Vayutel IT manager (retained) also had years of working and social relationship with the
transitioned staff who were now part of UCC. This split loyalty was creating problem as UCC day to
day internal issues (grapevines!) were almost known to Vayutel management who would confront
UCC management in governance and review meetings. Jeeva as PMO was watching this from behind
as his role stipulated him to manage the back end. The pressure from customer used to be
transferred to PMO for expediting hardware delivery next week, resources, and turning around
proposals in few hours. As someone whose job and training to be a problem solver and leading from
the front, he had his own ideas to come out of the messy situation.

Case question 3 : Can you categorize them using a relevant framework under the head ,
Technology, process, People, communication, leadership . What would be your recommendation ?

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 Turning around IT

Part 3

Decision that change the course!

A day before the said meeting with Mr Narayan Jaiswal President of Vayutel , Jeeva noticed unusual
activity in the six floor of FLD Losikhera tower. He could understand that senior executives from
Singapore descending for the meeting. These visiting executives live out of their suitcase and sleep
on business class seats most of the time are accustomed of using only small size soap for bath are
also masters of quick fix solutions. They can grant resources, increase spend budgets and socialize
with client leadership to pacify them. However you need an anchor on the ground to solve the real
problems for them on the ground. Like in Kargil India Pakistan conflict there has to be a dedicated
team on the ground who put their life (read career) on the line to capture Totoling heights3 and
thus change the course of war.

Jeeva met Hanish Sahtrabudhe in the Losikhera tower stair case. Hanish a fitness freak and
marathon runner would take staircase instead of lift if the climb is for 3-4 floors. Jeeva a relaxed guy
believing in natural fitness and yoga on the other hand would only take staircase for single floor
economising on wait time for lift .

“Shall I help you addressing the client issue at Vayutel ?” Jeeva asked him

Hanish thought for a moment and looked as if he got a ray of hope. He said with his brightened face

“Prepare for the meeting tomorrow, you will go with me.” Hanish smiled and his face seemed to
relax a bit. Hanish was aware of Jeeva’s IT consulting background and he was convinced that an IT
Consultant is needed to bring the fresh perspective to this chaotic situation to control.

That is how Jeeva was asked to take over the presentation in the meeting and introduced to Narayan
Jaiswal.

Jeeva knew that his inclusion in the account management role would be resisted by Account
management team of the UCC. But Hanish prevailed upon them. Sometimes Yujraj singh as change
bowler in tough situation helps!

Here was Jeeva addressing the combined leadership of Vuyutel and UCC who was expecting him to
produce a rabbit (solution) out of his laptop (magician hat). But he closed the laptop and the screen
went dark.

“I am very fortunate to join this role of account manager to day which according to me is best day in
history of the Vayutel and UCC project.. “He was cut short by visibly upset Mr Jaiswal

“You say it is the best day? According to me it is the worst day. …”

“You are right sir, it is the worst day as per you because nothing can further go wrong. But I think it
is the best day as now onwards the things can only improve! It cannot go further bad and we will

3
https://en.wikipedia.org/wiki/Battle_of_Tololing and https://www.indiatimes.com/culture/who-we-
are/the-toughest-battle-ever-fought-%E2%80%93-the-battle-of-tololing-kargil-war-1999_-234147.html

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work to improve. “He gestured as if Sharukh khan saying in the popular movie don’t worry I am
around, “मैं हूँ न “

Then he wrote on the while board.

“Who is responsible for the successful completion of the IT project?”

He then looked around. People were hesitant but many answered that UCC is responsible as they
have the contract for execution.

“But if this projects fails or this relationship between Vayutel and UCC fails who is going to be hurt
the most? We have already announced to the world that through this project we are trying to
create something new and unique way of working and now we want to abandon it? “ Jeeva persisted
.

“Let me ask you a different question. A mother is responsible for giving birth to the child but what is
the role of father during the child bearing period, or that of the grandfather grandmother , uncles
aunts…etc. Do they have the role to play or not? Or is only to criticize the mother that why she is
not producing child faster, healthier etc etc?” He paused and added

“I am back to the same question who is responsible and would benefit from the successful
completion of the IT project?”

After brief pause as if the message was settling in the minds of the people sitting around someone
said “We all”.

“So it is not UCC alone or retained IT of Vayutel or Vayutel circle Business Head but all of us
together have to own this new child of our family and play our role. We all have to nurture it.
Prepare for its arrival and ensure proper support for making it flourish.”

People around the table started to get a sense of perspective that IT projects are not vendor vs
Customer battle but a work of partnership.

Jeeva then added “ I want to implement all the projects in next 9 months, will create 30-60-90 days
plan for meticulous monitoring but we will have to start with a quick prioritization and developing
and IT Plan for next 3 years in parallel.”

Then he put up the chart.

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( Source of the diagram IT Strategy and Management 4th edition PHI Learning Prof Sanjiva Shankar Dubey )

Case question 4: Understand and relate each and every step of the integrated planning
framework given above.

Turning around IT

Part 4

From Chaos to Control

Any crisis is a perfect opportunity for a capable volunteer or problem solver. First of all those who
are responsible of the crisis tend to hide, those who are accountable tend to defend. It is the new
volunteer who focusses on solution. A problem solver should have the inner desire to solve the
problem. He/She need not depend on his/her capabilities alone but should be able to orchestrate
the team around him/her through sheer hard work, sense of purpose and demonstrable
commitment.

Such crisis managers are hard to find who wants to jump in fire without being asked to! But for an IT
consult a more difficult is the case the more easier is the opportunity to establish his /her credential.
IT consultant who are trained in such situation of manage compex program and suggest change the
course of the project. However, this job is not easy as he/she will be resisted by the responsible and
accountable people of the past. The past leaders would not let the new entity work as they would
feel that their names would be spoiled if the new leader is acknowledged and allowed to lead!

For such crisis manager a need of top cover support from a senior leader is needed. Fortunately for
Jeeva it was Hanish Shahstrabudhe (HS for short ) who without saying a word in writing or speech
has told Jeeva , go and solve the problem. Jeeva Insisted that hereafter all sub teams including those
of HR , Finance etc has to work under him. This request was granted. Jeeva told HS that he will take
directions only from HS and give him daily update as necessary.

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Jeeva was in command. Instead of being just and IT consultant doling out advice he has now a role to
implement some of his ideas. How can he refuse this role!.Jeeva put together a 30-60-90 days plan
to address the back log of 200 projects. He toured extensively to meet people and improved working
communication, relationship and Interlock with Business and Vayutel IT.

Case question 5: A . For the immediate 200 outstanding projects what would be your approach? As
IT consultant how will you address the situation? Please use PPT framework and some of the
models discussed in the class to address the backlog of 200 projects.

B. What difficulty do you perceive for Jeeva in executing this task? Should he have volunteered?
What preparation is needed for him to make himself ready for this execution role?

{ Postlude : After six months : When Jeeva entered the board room of Vayutel tower he found eyes
rolling up to him as if everyone was waiting for him to present the summary of this month’s report.
It was customary that before the meeting with UCC Mr Jaiswal would have called up all their cicel
CEOs and ascertained progress of the work being done by the UCC team supported by Vaytel IT and
other business managers. But Jeeva was ready for surprises that customers bring in such review
meetings. To his mind the progress was good, the planned targets were being regularly achieved.
Most importantly the three tiered governance process that he set up was yielding results. The
communication gap was removed, trust was reposed and the spirit of team was visibly seen amongst
all the members be it from UCC, Vaytel or supporting vendors.

For the readers the much of the details would not be necessary but the salient actions taken were

1. Project prioritization and comprehensive requirement gathering

2. Establishing clear business case before any IT investment
3. Daily Vayutel@ 5 call for all projects leads to share progress and resolve dependencies. The
novel part of this call was that it was chaired in rotation by senior managers of UCC and
Vayutel
4. UCC Team were given place in the Circle CEO weekly operational meeting to understand
the business needs as well as share their progress or requirements like any other function .
5. IT planning and management leading to centralization of common applications, closer
supervision of development and implementation.

“Shall I start the presentation ..?” Jeeva asked President Mr Narayan Jaiswal . But he
signalled him to wait and said.

“ Just hold on Jeeva. I want to say something before you go over our regular discussion. I see here
some of the Senior Executives of UCC from Asia Pacific Headquarters in the room. I want to welcome
them and thank for their support.

Before the meeting as you know I go into a conference call with Vayutel Circle CEOs as a normal
practice that Jeeva advised me. I am happy to share that not a single circle CEO had any complaints
or issues regarding UCC team or IT team. They were all full of praise. They are also prent through VC
today , I have asked them to stay back and listen to the initial discussion of the meeting today.” He
paused and changed his posture towards Jeeva.

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“ I wonder what tuned around a very difficult situation into such happy situation in the last 6
months. Not a single complaint from circle CEOs!
Jeeva can you summarize how it was done “ Mr Jaiswal looked at Jeeva who nodded and then went
to the board with a maker pen said “ Just three things sir “ and wrote .

 Trust and responsibility in every action

 Always focus for the client success
 Innovate relentlessly don’t give up

“ I think I have read these sentences before “ Me Jaiswal muttered . By then Hanish who was
amused with the turn of event and spoke “ Mr Jaiswal there are the core values of UCC,
Jeeva just reminded all of us of that and you can see the change.”
“ Can we get the cake inside . Today we will just celebrate our success.” Mr Jaiswal signalled
to get a huge cake to be wheeled in.

The clapping and cheers could be heard from the distance.

Case Question 5
1. What you would have done in such situation. You can also pick up ideas from what
Jeeva did and apply some of the models and frameworks discussed in the session.
2. Draw a 30-60-90 days plan for reversing the critical situation.

(Note : all characters, names locations are fictional. Any

resemblance is purely coincidental.)

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