Tuesday, January 22, 2013

Where’s the IT Advisory Talent? Hiring Woes in the IT Consulting Field and How the Profession Can Meet the Challenge


In an earlier post, I offered several thoughts on how the widespread lack of standardization in the MIS discipline hinders our ability to emerge as a true “profession” on par with accounting or architecture (you can view that article at this link: http://bizteck.blogspot.com/2010/03/out-of-sight-out-of-mind-case-for.html). I would now like to touch on a related and equally pervasive problem: the perennial difficulty consulting firms face in sourcing highly qualified candidates with IT advisory skills, particularly at the entry and Senior Consultant levels.

To begin, let’s define what I mean by the “IT advisory” marketplace and set of skills. As I view it, this IT realm consists of two complementary (but far too often siloed) sets of skills: what I’ll refer to as “IT performance management” on one side, and “IT risk management” on the other, as illustrated below:


The performance management / risk management dichotomy is rooted in two different sets of corporate value management: in the case of performance management, accreting value through implementation of more powerful systems, refinement of strategy, etc; and in the case of risk management, protecting value through audits, regulatory compliance, security management, etc.

A quick note before continuing. While this division is a useful one conceptually for IT managers and for consulting Partners managing their book of business and Go-to-Market strategy, I do not believe it is nearly as useful from a career management (individual professional) or talent management (Firm-wide) perspective. Quite the opposite, in fact; there is not a single convincing reason why consultants cannot (and, in fact, should not) master skillsets from both realms and utilize them to build a successful, multi-faceted career. In my next article, I’ll explore why I believe most large consulting firms are effectively “shooting themselves in the foot” by forcing individuals, often early in their careers, to pledge exclusivity to either the performance management or risk management side of the spectrum (and in more extreme cases, to only one particular service offering within one of those two realms.)

With the IT advisory marketplace defined, I think most of us can readily agree there is an ongoing shortage of qualified candidates within this high-growth, dynamic field. Anecdotes of hiring nightmares abound, and according to a 2011 report by IT recruitment firm Modis an astounding 44% of large corporations reported significant difficulty in sourcing IT advisory talent with the requisite skills for success.

Zooming in to this labor market segment even further, my own experience – corroborated by many others – is that the hiring difficulties are particularly acute for entry-level Analysts, experienced Analysts (often known as “Staff”, “Associates”, or simply “Consultants”), and Senior Consultants – and for no group more, perhaps, than the Seniors. The difficulties that large Firms face in hiring and retaining qualified IT advisory Senior Consultants are truly epic in nature; I am not exaggerating when I state that in today’s job market a quality Senior Consultant resource with two to five years of experience in system implementation and IT audit, in possession of a well-known credential such as the PMP or CISA, will have no difficulty securing a position anywhere from Seattle to Miami within a month of floating their resume online.

Given that unemployment in the United States has remained above seven percent for approaching half a decade now, one might expect that we would rapidly be heading towards equilibrium in this field: colleges should be producing scores of folks with skillsets aligned to these positions, who will quickly be assimilated into the labor market upon graduation. But if anything – as many hiring managers will agree – the IT advisory talent situation seems to be deteriorating even further. Why is this? I believe several complex factors are at play:

Factors Inhibiting IT Advisory Hiring
1. Lack of Academic MIS Standardization – As mentioned in the intro and in my earlier article, there is virtually no standardization of degree programs within the MIS field. While it is true that most MIS undergrads and grad students follow a similar academic course of study – business essentials mixed with core technology courses such as programming and database – it is highly unlikely that any two individuals pursuing a MIS degree from different institutions will graduate with an academic degree of the same name. This atomization in terms of nomenclature exponentially increases the difficulty hiring managers face in evaluating candidates; no recruiter ever has to wonder, for example, what exactly a Bachelor’s degree in Accounting “means.” Much more importantly, however, is the fact that the ambiguity around the academic MIS degree creates an invisible barrier to entry; many qualified undergrads, either unaware that the field exists or unable to conceptually distinguish it from computer science or computer engineering, never bother pursuing MIS degrees – unnecessarily constraining the supply of qualified candidates from the source. I too (initially a Computer Science undergraduate major) almost fell into this trap.

2. Senior Consultant Burn Out – The majority of hiring (and the majority of jobs) for IT advisory work occurs at the Senior Consultant level and below (with the exception of nascent practices – think cloud computing several years ago – and certain highly specialized services that require more specialized expertise and therefore command higher bill rate premiums in the market.) And the greatest demand is consistently for Senior Consultant resources, often the linchpins of the projects on which they serve. Having served as a Senior Consultant for two years in a large Firm, I can unequivocally say that it’s one of the most stressful, grinding occupations out there; successful Senior Consultants often find themselves acting in every capacity from entry-level Analyst to Senior Manager, sometimes in the course of one day! Adding to the stress is the fact that accountability for the skill development and work products of entry-level Analysts often lies squarely with Seniors, who are therefore placed in a precarious situation of developing their own (often still junior-level) skillsets while being entrusted with the development of a more junior staff member, often their first time in a people development role. And as if all of this were not enough, it is widely acknowledged that making the transition from Senior Consultant to Manager – no matter the size of one’s Firm – is the single most daunting career transition apart, perhaps, from admission to the Partnership or attainment of Managing Director rank.

3. Competition with Industry – In many ways it is still true that consulting offers an unparalleled path to rapid career development. Junior consultants are forced to assimilate a vast quantity of technical material, often spanning myriad industries, business processes, technological systems, and political cultures – usually in a very compressed amount of time. Generally it has been difficult for industry to offer an analogous “jump start” to one’s career, though that has changed considerably in recent decades with the growing popularity of rotation programs such as GE’s famed ITLP or “guest auditor” programs offered by certain internal audit functions. The increasing availability of these options in industry may cause some would-be consultants to bypass the field altogether (avoiding, with it, common complaints such as excessive travel, utilization pressure, etc.)

None of these challenges, of course, is insurmountable – given historically high unemployment and the ever-increasing importance of information technology in running businesses of all sizes, as well as the non-diminished allure and cachet of consulting, there is no reason why IT advisory employers should face an ongoing paucity of talent. Here are some of my thoughts on what individual employers – as well as the industry as a whole – can do to alleviate the strain:

Getting out of the Talent Quagmire
1. Clear Career Management – If people are unclear of what they need to do at their current level to succeed and advance, they are far more likely to fail outright or, at the least, grow unsatisfied with their rate of career progression and abandon ship. While true in any field this is particularly relevant in consulting, where employees work in many different environments with many different supervisors, often creating varying expectations, and “up our out” models often prevail. If your organization does not have clearly defined metrics (e.g. utilization, realization, margin, sales, etc.) at each and every level, you are behind the curve of leading practice. Furthermore, employees should be engaged in a regular, ongoing dialogue about what their particular career interests are, particularly as it relates to industry and/or technical expertise. Finally, employees at all levels should be informed of precisely what is required to advance to the next level – not a precise “checklist”, but in general terms of skills, years of experience, competency, conditions in the marketplace, etc. In short – if your employees believe success and advancement are “mysteries” or due to “random factors”, you risk losing your best talent.

2. Avoid Siloing Talent – It is my belief, backed by experience, that most individuals desire a diverse assortment of challenging assignments – in fact, I believe this is one of the primary drivers pushing many people into careers in consulting. It is time for the profession to tear down the artificially constructed barriers that have emerged between IT performance management and IT risk management – as well as the even more granular categorization schemes that often result in individuals performing the exact same type of work for months (or years) on end. This is a clear path to burning out professionals and driving them away from an IT advisory career.

3. Partner with Colleges – Apart from the important problem of academic MIS standardization discussed earlier, there exists a significant opportunity for major IT advisory consulting employers to increase their level of partnership and collaboration with universities to ensure that the MIS curriculum aligns with trends and business needs in the marketplace. Nobody is suggesting that MIS degree programs devolve into vocational training academies – but when many MIS students finish their undergraduate degree program not being able to define such basic terms as ERP package, data warehouse, or IT control, we as a profession clearly have substantial room for improvement.

Many of us feel blessed to enjoy IT advisory careers; the travel, the daily opportunities to help our clients succeed, and the ability to work with cutting-edge technology are truly exhilarating. As a profession, it is our collective responsibility to ensure that we’re attracting, developing, and retaining the best talent for these exciting, multi-faceted jobs of the future.

Note:  The opinions expressed in this and all Bizteck articles are exclusively those of the author and do not express any implicit or explicit endorsement by any of his current or previous employers.