Mike Osorio

BrainTrust Query: Do retailers know how to manage knowledge workers?

March 15, 2009

FROM RETAILWIRE:
Recent headlines show various retail organizations announcing outsourcing or layoffs of information technology and industrial engineering workers. These knowledge workers have several unique characteristics that retail management must appreciate when they make decisions that affect them. Do you think the total impact on "corporate knowledge" caused by outsourcing or replacing in-house knowledge workers is understood?      [more...]

As a long-time retail operations executive, I have seen both sides of this: outsourced and in-sourced IT groups. My own experience shows that the key individuals to keep in-house are the IT leadership and then just a few technicians. The IT leaders are among the keepers of institutional knowledge and the partners to operational management to discover opportunities, define the organizational goals, and apply technology to amplify potential and to solve business problems. The few techs on-site ensure the senior managers don't go crazy when they can't figure out how to access their documents. For the heavy lifting of project management, system design and maintenance, data integration, etc., outsourcing is the effective way to go.

I do not think most retail managers appreciate their IT folks--but only due to lack of knowledge. That is why it is key to have strong IT leadership sitting at the leaders' table to match the IT tools to the real business challenges, and report back on the ROI and efficiencies enabled by the technology employed.

Whether or not a KW would accept a reduction in salary to preserve their or a co-worker's job is irrelevant. This is always a bad idea. If a reduction in force is necessary, it is far better to make the cuts quickly, articulate a strong future vision, and move on. The remaining team will be better equipped to move forward positively than if they are constantly reminded of the RIF by a reduced salary.