The June 30, 1997 issue of Computerworld included a fascinating article on staffing issues for Information Technology organizations. No one reading this needs to be told that it is increasingly difficult to attract, hire and retain quality technical staff: That has become a core reality in this industry. What was interesting about the Computerworld article was that it forecasts the duration of the current 'talent gap', and also estimates the costs to industry that result. In this article, we present Terrapin's views on IT staffing issues, and propose some solutions.

First, some rather compelling numbers from the Computerworld article:

• The IT talent gap will continue for at least six to ten years
• The IT talent gap will cost as much as $15 billion per year in higher compensation costs
• The IT talent gap will cost as much as $500 billion per year in lost revenue
  

So, what are we supposed to do about this? The solutions you read about most often have a common theme:  do a better job recruiting. Ideas include referral bonus programs, retention programs, programs to identify non-traditional recruits, etc.

At Terrapin, we categorize all of these as the "better bait" strategy. We point out that all companies are fishing from the same pond when it comes to recruiting technical talent. It certainly helps to have the best bait, but doing so does not guarantee that the fish are going to bite. And in the case of recruiting technical talent, good bait can take the form of extremely high salary offers, even for relatively inexperienced individuals. Less experience increases risk for your business.

In the final analysis, absent some obvious defect in their existing recruiting strategy, we think most companies already have about as good a staff as they are going to be able to hire in this market. The myriad factors that draw employee and employer together have already been set in place. There is little that a company can do to change their current position in the talent market.

This is where Terrapin comes in. Knowing that you have as good a staff as you are likely to hire is of scant consolation when you are faced with a software development organization that is not up to the challenges imposed by your overall business conditions. An alternative way of improving the performance of your software development organization that is not based simply on hiring more and better staff is needed. At Terrapin, we believe that process improvement is key to accomplishing this objective.

One of the core principles of process improvement is to reduce the dependence of the organization on highly talented individuals. Instead, the organization learns how to deliver remarkable results with the average talent level that it already has. In other words, process improvement can help ordinary people do extraordinary things.

From another perspective, process improvement allows you to utilize the intellectual capital you are already paying for in the most effective possible way. Our strategy does not rely on making your employees smarter or better individually. Instead, we reduce the internal 'organizational friction' that slows your people down. Through the development of processes and discipline, we help organizations to become smarter.  This focus on the organization rather than individuals helps your business leverage existing intellectual capital, and to acquire new intellectual capital.  Paradoxically, this focus on the organization leads to more effective development of individual members of the staff. This results from sharpened definition of roles, accountabilities, objectives.  Targeting the organization for improvement increases the capacity of both individuals and the organization!

We can go on with further examples, but the point is clear: When confronted with today's recruiting market, Information Technology organizations can either try to recruit better or work smarter. Our experience tells us that working smarter through process improvement is faster, easier and much more economical.