My near philosophical musings about the world in general its problems and possible ways out.

2025-08-01

From War-Torn Nation to Tech “Tiger”

Vietnam’s Remarkable Rise

1 Introduction

Is Vietnam the new Silicon Valley of Asia? The question may sound exaggerated, but it points to a real phenomenon: Vietnam’s astonishing rise from the ashes of war to become a dynamic “little Asian Tiger.” Over the past few decades, Vietnam has transformed from one of the world’s poorest, conflict-torn countries into one of its fastest-growing economies. We here explore the roots of Vietnam’s success – examining how history, culture, geography, and outside influences converged to fuel an economic boom. Our focus however is on the burgeoning software and tech sector. Our goal is to enlighten the business community about the remarkable developments in Vietnam, a country that until recently many might have overlooked. In doing so, we will see that while dubbing Vietnam “the next Silicon Valley” might be hyperbolic, the nation’s trajectory in technology and innovation is certainly worth paying attention to.

2 From War to Reform: Vietnam’s Economic Transformation

Vietnam’s post-war situation in the late 1970s and 1980s was dire. After the decades-long Vietnam War (ending in 1975) and additional conflicts, the economy lay in ruins – agrarian, isolated, and mired in poverty under a strict centralized system. By the early 1980s, Vietnam was on the brink of economic collapse, with per capita GDP under $300 and chronic shortages of food and goods. Faced with this crisis, the Vietnamese leadership made a pivotal decision: in 1986 they launched the Đổi Mới (“Renovation”) reforms to transition from a Soviet-style planned economy to a “socialist-oriented market economy”. The Đổi Mới reforms introduced market incentives, encouraged private enterprise, and opened Vietnam to foreign trade and investment. In 1987, Vietnam passed its first Law on Foreign Investment, signalling that foreign companies were welcome.

Vietnam didn’t stop there. The government has taken bold steps, cutting over 120,000 public sector roles and reducing the number of provinces from 63 to 34 to streamline operations and boost agility. Also there’s a strategic pivot from state-owned enterprises to strengthening the private sector. The IT and software industries are receiving strong support, including tax exemptions and other incentives to spur innovation.

The results of these reforms have been nothing short of dramatic. Over the subsequent decades, Vietnam’s economy accelerated with export-led growth and industrialization. GDP per capita has increased roughly 20-fold since the late 1980s. Once a country where the vast majority lived in extreme poverty, Vietnam has become a middle-income nation and one of the fastest-growing economies in the world. The poverty rate plunged from about 58% in the early 1990s to around 2% by 2021, meaning over 40 million Vietnamese lifted themselves out of poverty. Such an historically rapid reduction in poverty – meeting the UN Millennium Development Goals a decade early – has been lauded by the World Bank as “exceptional”. In short, Vietnam rose from wartime ashes to economic success through bold policy change and integration into the global market.

3 Cultural and Demographic Catalysts

Several internal factors rooted in Vietnam’s culture and demographics have underpinned this success. First, Vietnam has invested heavily in its people. The country’s population is now about 100 million – roughly the same order of magnitude as Germany’s – and importantly, more than half of Vietnamese are under the age of 35. This young workforce is a demographic dividend fuelling growth. Recognizing that human capital is key, the government made primary education universal and compulsory early on, achieving a literacy rate above 95%. Vietnam’s emphasis on education (a trait influenced by Confucian cultural values) means the labour force is relatively skilled and highly literate, ready to work in manufacturing or services where basic technical skills and learning ability are required. In fact, broad education investments and a focus on science and engineering have created a talent pool that is attractive to investors and suitable for a fast-changing economy.

Vietnam’s culture of resilience and work ethic, forged through years of hardship, is often cited as an intangible factor in its rise. The population has shown an entrepreneurial spirit once market reforms allowed private business – today millions of small businesses contribute to the economy. Socially, Vietnam’s development has been relatively inclusive: women participate in the labour force nearly as much as men, a smaller gender gap than in many countries. Ethnically, Vietnam is diverse (with 50+ minority groups alongside the Kinh majority), but the country has generally maintained social cohesion around national development goals. This diversity means a variety of cultural perspectives and regional strengths can contribute to the economy. For example, harnessing the creativity of all groups – including ethnic minorities and women entrepreneurs – has been part of Vietnam’s strategy for sustainable growth. The government and educational institutions have also begun tapping the Vietnamese diaspora (over 6 million people abroad) as a source of expertise and innovation. Many overseas Vietnamese have attained high-tech skills in Silicon Valley or other global hubs, and Vietnam is encouraging them to connect back with the domestic start-up ecosystem. In short, Vietnam’s youthful human capital, cultural emphasis on learning, and inclusive approach to development have provided a strong foundation for economic success.

4 Global Integration and Foreign Investment

External influences have been equally critical to Vietnam’s rise. After Đổi Mới, Vietnam pivoted to an export-oriented growth model and actively courted foreign trade and investment. The country integrated into the global economy through joining ASEAN in 1995, signing bilateral trade agreements (including a pivotal trade deal with the U.S. in 2000), and eventually joining the WTO in 2007. Today, Vietnam is party to numerous free trade agreements – from the CPTPP to an FTA with the EU – which give it favourable access to key markets. This global integration has attracted high levels of foreign direct investment (FDI), especially as multinational manufacturers seek alternatives to China. Vietnam’s strategic location in East Asia, near global supply chain networks, and its stable political environment have made it a prime destination for investors looking for a “China+1” location. Investors from Japan, South Korea, Singapore, the U.S., and Europe have poured capital into Vietnam’s factories and real estate. FDI inflows reached about $25 billion annually in recent years and are projected to remain robust.

The impact of outside investment can be seen in Vietnam’s booming manufacturing sector. Companies like Samsung, LG, and Intel have built major production facilities in Vietnam. Vietnam is now one of the world’s leading electronics exporters – it has become a top producer of smartphones and electronics, second only to a few giants like China. The country also excels in textiles, footwear, and agricultural exports (it’s the second-largest coffee exporter globally). Crucially, foreign companies haven’t just brought money; they have brought know-how, technology transfer, and access to global markets, all of which have helped Vietnam climb the value chain.

Outside influence extends beyond just corporations. International development aid and expertise (from the World Bank, UN, etc.) assisted Vietnam’s transition in the 1990s and 2000s. More recently, as mentioned, the overseas Vietnamese community – including successful tech entrepreneurs abroad – acts as a bridge, advising start-ups at home and sometimes returning to launch ventures. In essence, Vietnam’s openness to the world has allowed it to leverage foreign capital and knowledge while still shaping these for national benefit. This blend of internal drive and external connection is a hallmark of Vietnam’s growth story.

5 Vietnam: The New Asian Tiger?

Thanks to the factors above, Vietnam is often cited as a rising “Tiger” economy in Asia. The term “Asian Tiger” originally described the high-growth economies of Singapore, Taiwan, South Korea, and Hong Kong. Vietnam now gets compared to these earlier Miracles for its sustained high growth. Indeed, Vietnam is frequently grouped with other fast-growing Southeast Asian economies as a “Tiger Cub Economy”. The numbers bear this out: Vietnam’s GDP growth has averaged around 6–7% for most of the past two decades (apart from a brief pandemic slowdown). Even in 2022, growth rebounded to 7.1%, and the World Bank projects around 6.5–6.8% annual growth in 2025–26. This pace is among the highest in the world and is set against the backdrop of a slowing global economy.

To put this in perspective, consider Germany – a much more developed economy of similar population size. While Vietnam is booming, Germany’s economy is stagnating by comparison. In fact, Germany’s output in 2024 was roughly the same as in 2019 (zero net growth over five years), and the outlook for 2025 “signals continued stagnation,” marking Germany’s longest period without growth in decades. German experts predict essentially 0% GDP growth in 2025 (after near-zero in 2023–24). Vietnam, meanwhile, grew over 5% even during the pandemic years and quickly returned to a high growth trajectory. This contrast highlights why Vietnam is drawing attention: at a time when many advanced economies face aging populations and sluggish growth, Vietnam offers youthful dynamism and expansion. Its economy is now the 37th-largest in the world (nominal GDP) and could rise much higher if high growth persists. Some analysts even project Vietnam could surpass established economies like Singapore in size over the next decade if trends continue.

Calling Vietnam “the new Silicon Valley” is an oversimplification – Vietnam still has far lower income levels and a different economic structure – but the spirit of the phrase captures Vietnam’s emerging role as a regional tech and innovation hub. The label “Little Asian Tiger” is perhaps more fitting: Vietnam has clearly joined the ranks of Asia’s most dynamic economies, thanks to a combination of historical resilience, favourable demographics, cultural emphasis on education, and global economic integration.

6 A Booming Tech and Software Sector

One of the clearest indicators of Vietnam’s progress is the rapid growth of its technology and software sector. In recent years, Vietnam has increasingly been talked about as an up-and-coming tech hub – sometimes nicknamed a potential “Silicon Valley of Southeast Asia” (or “Silicon Delta”). The Vietnamese government has explicitly prioritized the digital economy as a pillar of growth. Policies like the National Strategy on Digital Economy aim to position Vietnam as a global IT hub by 2030. This top-level support, combined with Vietnam’s cost advantages and talent pool, has spurred impressive growth in the tech industry.

According to the Vietnam Software Association (VINASA), Vietnam’s software and IT services industry generated over $4.5 billion in revenue in 2022 and is growing at 10–15% per year. The country has become a popular destination for software outsourcing and offshore development, thanks to several key strengths:

  • Skilled Talent Pool: Vietnam produces more than 100,000 IT graduates every year, many with strong skills in programming, AI, cloud computing, and other in-demand technologies. Technical education is booming, and Vietnamese engineers are often well-versed in English, which is helpful in serving international clients. This young tech workforce is hungry to prove itself, much like India or China’s were in earlier decades.

  • Cost Competitiveness: Software development services in Vietnam cost 30–50% less than in Western countries. For example, a mid-level developer in Vietnam might earn one-third of a counterpart’s salary in the U.S., yet with comparable skills and quality. This affordability, without a big sacrifice in quality, makes Vietnam extremely attractive for outsourcing contracts.

  • Government Support and Infrastructure: The government not only sets visions like the 2030 IT hub goal, but also backs it up with action – establishing tech parks, investing in ICT infrastructure, and offering tax breaks for tech investments. Internet access is widespread and cheap (thanks to heavy infrastructure investment, even rural areas are getting connected). Additionally, Vietnam ranks highly on global indices for outsourcing attractiveness (such as A.T. Kearney’s Global Services Location Index), reflecting its improvements in ease of doing tech business.

  • Business Ecosystem and Investment: Over the last decade, Vietnam’s start-up ecosystem has blossomed. As of 2024 there were over 4,000 start-ups operating in Vietnam, including at least two “unicorns” (start-ups valued over $1 billion) and around 11 more companies valued above $100 million. Pioneering tech firms like VNG Corporation (online gaming and digital content) achieved “unicorn” status, followed by fintech companies like MoMo (e-payments) and VNPay, and blockchain gaming developer Sky Mavis (known for the game Axie Infinity). The presence of these high-value start-ups shows that Vietnam is not only doing outsourcing, but also creating innovative products and platforms of its own. Supporting this, there are now hundreds of incubators, accelerators, co-working spaces, and VC funds in Vietnam’s major cities to nurture new tech ventures.

Together, these elements have turned Vietnam into a rising star in software development and IT. The country is already Asia’s second-largest software outsourcing destination after India in some rankings, serving clients worldwide. And it’s moving up the value chain: from basic coding projects a decade ago to now handling advanced work in artificial intelligence, fintech, and smart manufacturing. A recent Bloomberg report highlighted that Vietnam’s ambitions in cutting-edge fields like AI hinge in part on its growing tech champions. In short, Vietnam’s tech sector is booming domestically and gaining recognition globally.

Let's illustrate the state Vietnams hi-tech sector has reached meanwhile by presenting two examples

7 FPT Corporation: A Homegrown Tech Giant

No discussion of Vietnam’s software sector is complete without FPT Corporation, the country’s largest and most influential technology company. Founded in 1988, shortly after the Đổi Mới reforms, FPT started from humble beginnings (its early name was “Food Processing Technology,” reflecting an initial focus that quickly shifted to IT). Over the decades, FPT grew in tandem with Vietnam’s economy, and today it stands as a homegrown multinational tech services powerhouse. FPT Software, the primary IT arm of the conglomerate, now employs over 27,000 professionals in 28 countries worldwide. In 2022, FPT Software recorded about $803 million in revenue – a massive figure for a Vietnamese company – and it continues to grow rapidly.

FPT provides a wide range of services including software development, systems integration, digital transformation consulting, AI and data analytics solutions, cloud services, and more. It has built up strong research & development capabilities and has formed partnerships with global tech giants like Microsoft, AWS, and IBM. Impressively, FPT counts 89 Fortune Global 500 companies among its 1,000+ clients around the world. In other words, many of the world’s biggest firms (spanning aviation, finance, healthcare, manufacturing, etc.) entrust critical IT projects to teams in Vietnam. This speaks volumes about how far Vietnam’s tech sector has come.

The success of FPT has had a multiplier effect on Vietnam’s tech ecosystem. It demonstrated that a Vietnamese company can compete at world-class levels, which has inspired countless start-ups and IT graduates. FPT also actively invests in education (running a university and technology institutes) to keep the talent pipeline strong. In recognition of its leadership, Gartner has named FPT as a leading IT services provider in the Asia-Pacific region. FPT’s story essentially mirrors Vietnam’s story: from very modest beginnings to competing on the global stage through vision, skill development, and integration with the global market. For the business community, FPT is a case study in how Vietnam can produce companies that are not just low-cost outsourcers, but true innovation partners.

8 Finative: A New Fintech Innovator

At the other end of the spectrum from FPT’s giant stature, we have emerging start-ups like Finative – illustrative of the new wave of tech entrepreneurship in Vietnam. Finative is a Hanoi-based fintech and IT consulting start-up, founded in 2021. In just a few years, Finative has grown to around 50–200 employees and carved out a niche in providing digital solutions for banks and financial companies. As Finative describes its mission: “we help banks and fintech companies across APAC and Europe accelerate digital transformation through tailored IT solutions.”. This means a company in Vietnam is building and implementing advanced software for banks not only domestically but also for international clients – a remarkable fact that underscores Vietnam’s global reach in tech services even at the start-up level.

Finative’s work involves modern banking technologies such as core banking system integration, mobile banking apps, and leveraging platforms like Temenos (a popular global core banking software). Essentially, they are helping traditional banks modernize their tech stacks and digital customer experience. That Finative can export such high-tech services from Vietnam to clients as far as Europe shows the credibility Vietnamese tech firms have attained. It also highlights the fintech boom in Vietnam: digital payments, online banking and financial tech are a hot sector, supported by a young, tech-savvy population at home. Dozens of new fintech start-ups (in e-wallets, online lending, etc.) have sprung up, and firms like Finative support both these fintech companies and established banks in their digital journeys.

While Finative is still small compared to FPT, it provides colour to Vietnam’s story by demonstrating the entrepreneurial energy in the tech sector. Founded by local tech professionals (some likely with overseas experience), Finative represents the new generation of Vietnamese start-ups aiming for global markets from day one. Its presence in Hanoi’s growing tech scene also indicates that innovation is not only confined to Ho Chi Minh City (Vietnam’s commercial capital), but is nationwide. As Vietnam continues to develop its start-up ecosystem (with incubators at major universities, innovation hubs, and events like Techfest), we can expect many more “Finatives” to emerge – small start-ups with big ambitions to serve the world.

9 In a nutshell

Vietnam’s journey from a war-torn, impoverished land to a thriving tech-enabled economy is one of the most compelling development stories in recent memory. The roots of this success are multifaceted: a history that necessitated resilience and bold reform, a culture that prizes education and hard work, a demographic edge with a young population, and savvy engagement with global trade and investment. Vietnam leveraged these factors to become a manufacturing export powerhouse in the 2000s and 2010s – and now, in the 2020s, it is leveraging them to climb into higher-value sectors like software, digital services, and innovation. Its economy continues to boom at ~6–7% growth, outpacing many developed countries by a wide margin.

So, is Vietnam the new Silicon Valley? Probably not in the literal sense – Silicon Valley’s unique ecosystem is hard to duplicate. However, Vietnam has certainly become a Silicon Valley of Southeast Asia in terms of vibrant tech activity and start-up growth. Some have dubbed it Asia’s next tech frontier or a “Silicon Delta,” capturing the idea that Vietnam is a rising regional tech hub. Vietnam’s software industry and start-up scene, exemplified by giants like FPT and newcomers like Finative, show that the country is capable of both delivering world-class IT services and fostering innovation on its own soil.

For the international business community, the implications are clear. Vietnam is no longer a remote afterthought – it’s a place of opportunity, whether for investment, partnerships, or sourcing talent. The Vietnamese government’s vision is to have a digital economy accounting for a significant share of GDP by 2030, and current trends suggest they are on track. Challenges remain (infrastructure needs, higher education quality, global economic fluctuations), but if Vietnam sustains its reforms and investment in human capital, its “little tiger” economy may grow into something even more formidable.

In conclusion, Vietnam’s rise is a testament to how a country’s history and culture can fuel a turnaround when combined with openness to outside influences. It may not be the next Silicon Valley just yet, but it has undeniably earned its status as a booming Asian tech and business hotspot. The remarkable progress of this once-overlooked nation is indeed something the world – and especially business leaders – should pay attention to. Vietnam’s story shows that even from the darkest of histories, a bright and innovative future can emerge.

10 Sources

  • Vietnam Briefing – Why Is Vietnam’s Economy Growing So Fast?

  • World Bank – Press Release March 12, 2025: Vietnam Economic Update

  • Vietnam News (VNS) – “Vietnam’s path to sustainable poverty reduction”

  • Intereconomics (German Economic Institute) – “Germany’s economy stagnated…”

  • Coaio (Tech firm blog) – “Overview of Vietnam’s Software Industry”

  • Coaio – “Top Software Firms in Vietnam (2025)”

  • HIMSS – FPT Software Profile

  • LinkedIn – Finative Company Info; Finative Job Posting

  • Vietnam Investment Review – “Innovative start-up ecosystem garnering attention”

2025-01-02

Software: Restructuring a troubled project in public transport

The Quality Tigers at work

Dr. Horst Walther

Industry: Information Technology (Software for Public Transport)

Line function: IT (Head of Professional Services)

Topic: Restructuring, Turnaround, Kanban, Scrum

Revenue: €10 million

Employees: 120

The Task

A key manager responsible for a software company's flagship product had resigned. This move came unexpectedly, as the highly anticipated new version of the flagship software was about to be released.

There had been no shortage of subtle warning signs. Several internal and external indicators pointed to risks in the technology, functionality, and market readiness of this next-generation product, eagerly awaited by the customer base. Top management apparently hadn't paid the necessary attention to these warning signals.

Immediate action was now required to ensure the release could still proceed as planned. On the other hand, filling the vacant position in a highly transparent market was a prudent move that had to be carried out with the necessary care and caution, and without undue haste.

An experienced interim manager was needed who could quickly take the reins and keep the business running smoothly. While work continued as planned, he was to find, select, and train his successor.

Solution

A three-stage approach had already been agreed upon in advance:

  1. Diagnosis – Over a period of six weeks, the future interim manager took on an observer role, participated in all key events, conducted interviews, and studied technical documents.

  2. Immediate Measures – Following an approach that can be aptly abbreviated as CCC (Cash, Cost & Customers), the necessary budget had to be secured, identifiable cost-saving potential had to be utilized, and renewed confidence had to be conveyed to the uncertain customer base. The focus then shifted inward, to the root causes that had ultimately led to this difficult situation.

  3. Revitalization - Agilization, Metric, Quality Management,

Diagnosis

To narrow down the problem area, identify and assess existing vulnerabilities, and ultimately estimate the scope of necessary measures, the following analytical steps were initiated:

  • Estimation of the system size, expressed in lines of code (LoC) and function points (fp) of SAP ABAP code by applying a Backfiring methodology.
  • Architecture and design validation using a selected third-party measurement tool.
  • Application of a standard defect model, especially to determine the expected number of undiscovered defects.
  • Management, reclassification, and prioritization of defects in a defect database based on customer feedback plus expert assessment.

It quickly became clear that, despite the best intentions of launching a particularly high-performing product, a code monster burdened with a great deal of technical debt had been created. Its maintainability limitations were now becoming apparent. At the same time, the next version was due for release. In the meantime, existing customers waited impatiently for a long list of known bugs to be fixed.

The feeling among the employees that they had lost control of the process was confirmed by the quantitative findings. In their distress, they resorted to mutual blame. The working atmosphere suffered considerably as a result.

It had thus become clear that the interim management phase would not simply be a temporary solution to a personnel vacancy. The interim manager therefore had to deliver a convincing turnaround strategy. He also had to possess the charisma to bring the team and management on board for what was expected to be a difficult journey.

Immediate measures

And this is where we started, with the development teams. In an all-hands meeting, the critical situation was officially presented to the staff for the first time. After initial strong emotions, it eventually became clear to everyone involved that the goal of an effective turnaround could only be achieved together.

The stated guiding principle of "quality before deadline" was ultimately received with relief, and the release of the new version was halted until sufficient system stability was achieved.

Since a lack of or dysfunctional inter-team communication had been identified as a major obstacle, all developers now gathered daily at the start of their workday in front of the Kanban board to coordinate testing and bug fixing.

Comprehensive communication was also the key factor in winning over impatient customers to the new "no more false promises" strategy. —and in return, to obtain their approval for the one-time extended delivery deadline.

The product under development was functionally quite attractive, promised to fulfil many long-held wishes of the transport companies, and, thanks to its document-oriented workflow concept, was a favourite of the external auditors. The understanding shown to us, albeit reluctantly, was only a step in the right direction, a trust that we first had to earn back.

Even though the “customer is king,” the next step was to be completely honest with the shareholders represented on the advisory board and win them over to the new approach. They ultimately accept the emergency action plan – also due to a lack of realistic alternatives.

The full focus on the "Quality First Paradigm" in all phases of software development, supplemented by an emphasis on a "Clean Code" approach and random checks of its compliance by newly appointed "Quality Tigers," and the practical implementation of this approach.

Agile management methods – Scrum for implementation projects, Kanban for maintenance activities – rounded off the necessary immediate measures.

Revitalization

Even though the sprint for the upcoming delivery of the "next-generation software" yielded initial successes, it had become clear that we were not yet adequately prepared for the marathon ahead. The changing market, with its new and dynamic competitors, new requirements, and increased price sensitivity among customer groups, demanded increased productivity and, at the same time, greater cost efficiency.

Given the increased demands on the one hand and the distressingly high level of technical debt on the other, the medium-term measure of exploring the possibility of outsourcing particularly resource-intensive tasks to a lower-cost country via "nearshoring" was undertaken.

In order to outsource these tasks, system documentation and training materials first had to be updated and translated into English. The nearshoring teams under consideration were often far ahead of us in the application of agile development methods. A training program for internal staff therefore had to be set up immediately.

The complex transformation of the entire development department, the heart of the company, had to be justified by ambitious growth targets in a market that was fortunately not yet saturated.

This meant, among other things, supporting various national architectural standards for public transport. Internally, product and project business had to be separated and professionalized.

The ruthlessly realistic investment forecast, presented as an essential part of a long-term business plan, initially raised eyebrows among the shareholders but was ultimately accepted.

Part of this included a proposed new management structure for the "Professional Services" division, the hiring of a product manager and a service delivery manager, and finally, the handover to the new management.

Result

On the one hand, the New transparency helped to open the eyes of management and the board of directors to the seriousness of the situation and the extent of the "technical debt" accumulated over the years.

On the other hand, the revitalization program developed a strong persuasive power. The presented vision was supported by solid numerical calculations. While the presented business plan showed high investments to pay off the technical debt accumulated over the past years, it promised a positive cash flow after approximately two years.

Meanwhile, the ad-hoc activities showed initial positive results and strengthened confidence in the feasibility of this project. With renewed hope and the first positive signals from the market, the handover to the new management gave the company new momentum and was generally perceived as a new beginning.

Dr. Horst Walther

SiG Software Integration GmbH
Große Bleichen 1-3
20354 Hamburg

horst.walther@si-g.com
https//www.si-g.com

+49 171 214 55 02

Software: Restrukturierung eines Desaster-Projekts im ÖPNV

Branche: Informationstechnologie (Software für den öffentlicher Personenverkehr)

Linienfunktion: IT (Leiter Professional Services)

Thema: Restrukturierung, Turnaround, Kanban, Scrum

Umsatz: 10 Mio. Euro

Mitarbeiter: 120

Aufgabe:

Ein wichtiger Manager, der für das Hauptprodukt eines Softwarehauses verantwortlich war, hatte sein Arbeitsverhältnis gekündigt. Dieser Schritt kam unerwartet, dabei stand die mit hohen Erwartungen verbundene neue Version der Flaggschiff-Software kurz vor der Auslieferung.

An subtilen Vorwarnungen hatte es nicht gefehlt. Mehrere interne und externe Indikatoren deuteten auf Risiken bei Technologie, Funktionalität und Marktreife dieses von der Kundenbasis sehnlichst erwarteten Produkts der nächsten Generation hin. Den Warnsignalen war von Seiten des Top-Managements offenbar nicht die erforderliche Aufmerksamkeit geschenkt worden.

Jetzt bestand dringender Handlungsbedarf, damit die Auslieferung noch plangemäß durchgeführt werden konnte. Andererseits war die Besetzung der vakanten Position in einem kleinen und hochtransparenten Markt ein sensibler Akt, der mit der notwendigen Sorgfalt, Vorsicht und ohne erkennbare Eile durchgeführt werden musste.

Dafür wurde ein erfahrener Interim Manager benötigt, der schnell die Zügel in die Hand nehmen und das Geschäft weiterführen konnte. Während die Arbeiten nach Plan weitergeführt würden, sollte er seinen Nachfolger finden, auswählen und einarbeiten.

Lösung

Bereits im Vorfeld war eine dreistufige Herangehensweise vereinbart worden:
  1. Diagnose – Über einen Zeitraum von 6 Wochen nahm der spätere Interim Manager eine Beobachterrolle ein, nahm an allen wesentlichen Veranstaltungen teil, führte Interviews und studierte einschlägige Unterlagen.

  2. Sofortmaßnahmen – Nach einem Ansatz, der sich eingängig als CCC (Cash, Cost & Customers) abkürzt, musste zunächst das erforderliche Budget gesichert, erkennbares Kostensenkungspotential genutzt und der verunsicherten Kundenbasis neue Zuversicht vermittelt werden. Anschließend wurde der Blick nach innen, auf die eigentlichen Ursachen gerichtet, die schließlich zu dieser schwierigen Situation geführt hatten.

  3. Revitalisierung – Agilisierung, Metrik, Qualitätsmanagement, Organisationskultur und Resilienz waren die Überschriften zu den mittel- bis langfristigen Maßnahmen, die die folgenden zwei Jahre prägen sollten.

Diagnose

Um den Problembereich einzugrenzen, bestehende Schwachstellen zu identifizieren und zu bewerten und schließlich das Ausmaß der zu treffenden Maßnahmen abschätzen zu können, wurden folgende analytische Schritte eingeleitet:

  • Architektur- und Entwurfsvalidierung mit einem ausgewählten Messwerkzeug eines Drittanbieters.
  • Anwendung eines Standardfehlermodells, insbesondere zur Ermittlung der zu erwartende Menge noch unentdeckter Fehler.
  • Verwaltung, Neuklassifizierung und Priorisierung der Mängel in einer Mängeldatenbank nach Kundenfeedback plus Expertenurteil.

Schnell wurde klar, dass in der besten Absicht, ein funktional besonders leistungsfähiges Produkt auf den Markt zu bringen, ein mit vielen technischen Schulden beladenes Codemonster geschaffen worden war. Dessen Grenzen der Wartbarkeit wurden jetzt deutlich. Gleichzeitig aber stand die nächste Version zur Auslieferung an. In der Zwischenzeit warteten bestehende Kunden ungeduldig darauf, dass eine längere Liste bekannter Fehler behoben würde.

Das unter den Mitarbeitern bereits latent vorhandene Gefühl, das Verfahren nicht mehr im Griff zu haben, wurde durch die quantitativen Feststellungen für alle zur Gewissheit. In ihrer Not griffen sie zu wechselseitigen Schuldzuweisungen. Das Betriebsklima litt erheblich darunter.

Dass die Phase des Interim Managements keine reine Überbrückung einer personellen Vakanz würde, war damit klar geworden. Der Interim Manager musste mithin eine überzeugende Turnaround-Strategie liefern. Auch musste er über das Charisma verfügen, Team und Management für eine erwartungsgemäß unbequeme Reise an Bord zu holen.

Sofortmaßnahmen:

Und hier, bei den Entwicklerteams, setzten wir auch den Ansatzpunkt. In einem All-hands-Meeting wurde der Belegschaft die kritische Situation zu ersten Mal offiziell präsentiert. Nachdem die Emotionen zunächst hohe Wellen schlugen, war am Ende allen Beteiligten klargeworden, dass das Ziel eines wirksamen Turnarounds nur gemeinsam zu erreichen war.

Das ausgegebene Grundprinzip „Qualität vor Termin" wurde letztlich mit Erleichterung aufgenommen, die Auslieferung der neuen Version gestoppt, bis eine ausreichende Systemstabilität erreicht würde.

Da fehlende oder dysfunktionale inter-Team Kommunikation als wesentliches Hemmnis erkannt worden war, versammelten sich ab sofort alle Entwickler täglich zu Arbeitsbeginn vor dem Kanban-Bord, um Test und Fehlerbehebung zu koordinieren.

Umfassende Kommunikation war auch der Schlüsselfaktor, um die ungeduldigen Kunden für die neue Strategie "keine falschen Versprechungen mehr" zu gewinnen – und im Gegenzug ihre Zustimmung für die einmalig verlängerte Lieferfrist zu erhalten.

Das in der Entwicklung befindliche Produkt war funktional durchaus attraktiv, versprach viele von den Verkehrsunternehmen langgehegte Wünsche zu erfüllen und war durch sein belegorientiertes Ablaufkonzept der Liebling der externen Auditoren. Das uns notgedrungen entgegengebrachte Verständnis war aber nur ein Vorschuss auf ein Vertrauen, dass wir uns erst wieder erarbeiten mussten.

Auch, wenn der „Kunde König" ist, galt es als nächstes, den im Beitrat vertretenen Gesellschaftern „reinen Wein" einzuschenken, und sie für das neue Vorgehen zu gewinnen. Sie akzeptieren den Notfallaktionsplan schließlich – auch mangels realistischer Alternativen.

Die volle Konzentration auf das "Quality First Paradigma" in allen Phasen der Software-Entwicklung, ergänzt um die Betonung eines "Clean Code"-Ansatzes und der stichprobenartigen Prüfung seiner Einhaltung durch neu ernannte „Quality-Tigers" und die praktische Einführung agiler Managementmethoden – Scrum für Implementierungsprojekte, Kanban für Wartungsaktivitäten – rundeten die erforderlichen Sofortmaßnamen ab.

Revitalisierung

Auch wenn der Sprint zur anstehenden Auslieferung der „Next-Generation Software" erste Erfolge zeitigte, war doch deutlich geworden, dass wir für den vor uns liegenden Marathon noch nicht ausreichend aufgestellt waren. Der sich wandelnde Markt mit neuen vitalen Wettbewerbern, neuen Anforderungen und einer höheren Preissensitivität der Kundengruppen verlangte nach Steigerung der Produktivität und gleichzeitig höherer Kosteneffizienz.

Angesichts der gestiegenen Anforderungen einerseits und dem bedrückend hohen Bestand an technischen Schulden wurde als mittelfristige Maßnahme die Prüfung der Auslagerung von besonders aufwändigen Tätigkeiten per „Nearshoring" in ein Land mit niedrigeren Kosten angegangen.

Um Tätigkeiten vergeben zu können mussten System-Dokumentation und Schulungsmaterial zunächst auf einen aktuellen Stand gebracht und in die englische Sprache übertragen werden. In der Anwendung agiler Entwicklung Methoden waren die in Betracht kommenden Nearshoring-Teams uns oft weit voraus. Es musste also umgehend ein Trainingsprogramm für die internen Mitarbeiter aufgesetzt werden.

Die aufwändige Transformation der gesamten Entwicklung, dem Herzstück des Unternehmens, musste entsprechend durch ehrgeizige Wachstumsziele auf einem glücklicherweise noch nicht gesättigten Markt gerechtfertigt werden.

Das bedeutete unter anderem die Unterstützung verschiedener nationaler Architekturstandards für den öffentlichen Personenverkehr (ÖPV). Nach Innen mussten Produkt- und Projektgeschäft separiert und professionalisiert werden.

Die schonungslos dargestellte realistische Investitionsprognose als wesentlicher Teil eines langfristigen Geschäftsplans sorgte bei den Gesellschaftern zunächst für Stirnrunzeln, wurde aber schließlich akzeptiert.

Teil dessen war unter anderem eine vorgeschlagene neue Führungsstruktur für den Bereich "Professional Services", die Einstellung eines Produktmanagers und eines Service-Delivery-Managers und schließlich die Übergabe an das neue Management.

Ergebnis

Einerseits trug die neue Transparenz dazu bei, der Geschäftsführung und dem Verwaltungsrat die Augen für den Ernst der Lage und die Höhe der im Laufe der Jahre angehäuften "technischen Schulden" zu öffnen.

Auf der anderen Seite entwickelte das Revitalisierungsprogramm eine starke Überzeugungskraft. Die vorgestellte Vision wurde durch solide numerische Berechnungen gestützt. Der vorgestellt Business Plan wies zwar hohe Investitionen zur Tilgung der über die vergangenen Jahre angehäuften technischen Schulden aus. Insgesamt versprach der Business Plan jedoch einen positiven Cashflow nach rund zwei Jahren.

In der Zwischenzeit zeigten die Ad-hoc-Aktivitäten erste positive Ergebnisse und stärkten das Vertrauen in die Durchführbarkeit dieses Projekts. Mit neuer Hoffnung und den ersten positiven Signalen des Marktes verlieh die Übergabe an das neue Management dem Unternehmen neuen Schwung und wurde allgemein als Neuanfang wahrgenommen.

Dr. Horst Walther

SiG Software Integration GmbH
Große Bleichen 1-3
20354 Hamburg

horst.walther@si-g.com
https//www.si-g.com

+49 171 214 55 02

2024-11-28

Scientist – a doubtful neologism?


Reading the following text left me wondering, if there are more of such examples: words starting in Greek and ending in Latin or the other way round, or even more dramatically mixed.

“They say it is an ugly hybrid with a Latin root and a Greek termination…. Even if the accusation were true, those who swallow ‘voltmeter’ and ‘ionisation’ would scarcely strain at such a very mild inelegance.”

In a letter to the editor of Nature in 1924, an author asked the journal to adopt the word ‘scientist’ instead of regarding it a ‘dubious neologism’, but rather a useful term that recognises the common thread of the scientific method.

After short research with a little help of my chatbot buddy, I quickly found out, that the linguistic mixing of Greek and Latin roots, known as macaronic hybridisation, is quite common in the English language, especially in scientific and technical terms. Many of these hybrids arose naturally as Greek and Latin were the primary sources of vocabulary for the sciences, and their mixing was seen as practical rather than puristic.

Here's a list of some notable examples, categorized by their composition:

Greek Root + Latin Suffix

  1. Television (Greek: "tele-" = distant + Latin: "vision" = sight)
  2. Thermometer (Greek: "thermo-" = heat + Latin: "-meter" = measure)
  3. Astrology (Greek: "astro-" = star + Latin: "-logy" = study)
  4. Biography (Greek: "bio-" = life + Latin: "-graphy" = writing)
  5. Philosophy (Greek: "philo-" = love + Latin: "-sophy" = wisdom)

Latin Root + Greek Suffix

  1. Aquaphobia (Latin: "aqua" = water + Greek: "-phobia" = fear)
  2. Decimetre (Latin: "deci-" = tenth + Greek: "-meter" = measure)
  3. Multiverse (Latin: "multi-" = many + Greek: "-verse" = universe)
  4. Carnivorous (Latin: "carni-" = flesh + Greek: "-vorous" = eating)
  5. Luminiferous (Latin: "lumin-" = light + Greek: "-ferous" = carrying)

Dramatically Mixed Words

These words combine more freely between Greek and Latin elements:

  1. Heliocentric (Greek: "helio-" = sun + Latin: "-centric" = centered)
  2. Electrolysis (Greek: "electro-" = amber (electricity) + Latin: "-lysis" = loosening or dissolving)
  3. Anthropology (Greek: "anthropo-" = human + Latin: "-logy" = study)
  4. Homosexual (Greek: "homo-" = same + Latin: "-sexual" = relating to sex)
  5. Geostationary (Greek: "geo-" = Earth + Latin: "-stationary" = standing still)

Pure Hybrids in Common Use

  1. Automobile (Greek: "auto-" = self + Latin: "mobilis" = movable)
  2. Neonatal (Greek: "neo-" = new + Latin: "natal" = birth-related)
  3. Hydraulic (Greek: "hydro-" = water + Latin: "-aulic" = pipe or channel)
  4. Palaeontology (Greek: "paleo-" = ancient + Latin: "-logy" = study)
  5. Periscope (Greek: "peri-" = around + Latin: "-scope" = to see)

Why This Happens

  • Greek was the dominant language for early philosophy, science, and medicine.

  • Latin was the language of the Roman Empire and became the lingua franca of scholars in Europe.

  • When modern scientific terminology evolved, scholars borrowed elements from both languages, often mixing them to describe new concepts.

Some Fun Factoids

  • This practice of hybridisation sometimes raised eyebrows among purists, as shown in the Nature letter you referenced. However, practicality and the evolution of language often win out over strict adherence to linguistic purity.

  • The term "scientist", as criticized in the example, was coined in the early 19th century by William Whewell, combining the Latin "-ist" suffix with the root "science," itself from the Latin "scientia."

The evolution of language often wins out over strict adherence to linguistic purity. Nevertheless, we should be aware of the words we are using. They may tell their own stories. Words often carry histories within them, quietly telling stories about the evolution of ideas, cultures, and even power dynamics.

Linguistic choices aren't just about communication; they're a window into the past and a reflection of the creativity and pragmatism of human thought. Language, after all, is humanity's oldest shared tool, constantly adapting to new contexts while carrying echoes of the old.

Mixing Greek and Latin roots is like weaving together threads from two great civilizations to create new conceptual fabric. It’s a testament to how interconnected human knowledge has always been. And the way we continue to innovate with language—whether through hybrids like television or playful reinventions—is a reminder that language itself is alive, as dynamic as the cultures it serves.

So, at least in those composite words humanity is living in perfect harmony, like ebony and ivory on the Piano 😊

2024-08-02

Kleine Überraschung für den Interim Manager

 


Die Wahrheit erfährst Du oft erst, wenn, wenn Du bereits mittendrin steckst.

Vor meiner Karriere als Interim-Manager habe ich aus praktischer Erfahrung als Unternehmensberater gelernt, dass es drei ehrliche Gründe geben kann, warum ein Unternehmen einen externen Berater hinzuzieht:

  1. Um Spezial-Know How zu erwerben oder zumindest zu nutzen, das sie intern nicht haben oder nicht bereithalten wollen,

  2. Um fehlende Kapazitäten zu kompensieren, insbesondere um Veränderungsaktivitäten zu ermöglichen, und

  3. Um einen unvoreingenommenen externen Blick auf die interne Situation zu erhalten, möglicherweise kombiniert mit dem Mehrwert der Positionierung im Markt im Vergleich zu anderen.

Und dann gibt es eine Reihe von nicht so ehrlichen, nicht so anständigen Gründen, um externe Expertise zu nutzen: um heimliche verborgene Aktivitäten in internen Machtkämpfen zu befeuern, um die eigene Untätigkeit in Notfällen zu vertuschen, um einen Konkurrenten aus dem Rennen um die Spitze zu werfen ... Es gibt mehr solcher Fälle, als sich ein kranker Geist vorstellen kann.

Um ehrlich zu sein, hatte ich anfangs keine Ahnung davon, musste aber schnell dazulernen.

Als ich dann das Feld des Interim-Managements betrat, stieß ich auf einen ähnlichen Dualismus von Wahrnehmung und Realität, den ich gerne mit Euch teilen möchte.

1 Unangenehme Entdeckungen 

Das Management eines Programms zur Zentralisierung von 25 regionalen Instanzen eines veralteten Kernbankensystems und dessen Ersatz durch ein neues und modernes System war eine gewaltige, aber prestigeträchtige Aufgabe. Gut, dass das Unternehmen dafür einige zusätzliche, qualifizierte Ressourcen unter Vertrag genommen hatte. Es sollte mithin machbar sein, so dachte ich.

Unter der sichtbaren Oberfläche hatte der Eisberg jedoch eine enorme Basis aus unsichtbaren Herausforderungen, denen begegnet werden musste, um den Erfolg zu gewährleisten.

  • Die 25 Instanzen waren in sehr unterschiedlichem Zustand, in verschiedenen Versionen, wurden auf unterschiedliche Weise gemäß sehr unterschiedlichen Prozessen genutzt. Da Kunden in den Regionen unterschiedliche Vorlieben in Bezug auf die genutzten Bankprodukte hatten, war an diesen Stellen oft auch unterschiedliche Funktionalität implementiert worden.

  • Verfügbarkeit und Sicherheit, obwohl nicht gerade berauschend und oft bemängelt, waren aufgrund des verteilten Risikos erträglich – mit der Zentralisierung war aber eine erhebliche Verbesserung erforderlich. Business Continuity Management, Standardarbeitsanweisungen und Cybersicherheit bedurften alle einer deutlichen Professionalisierung.

  • Schließlich erfuhr ich, dass ich nicht der erste war, der diesen Auftrag erhielt. Einige Vorgänger hatten es vor mir versucht – und waren gescheitert. Die Hoffnung auf einen gemeinsamen Erfolg in dem inzwischen erschöpften Team zu nähren, erwies sich als keine leichte Aufgabe. Kurz gesagt, es stellte sich heraus, dass ich eine gute Gelegenheit haben würde, etwas „Spaß“ zu haben.

2 Glänzende Zahlen – verborgene Schulden

Nach einigen Jahren hatte ich eine zweite Chance zu glänzen – oder in die Falle zu tappen ...

Ein Manager einer Fachabteilung mit rund 60 Mitarbeitern bei einem Softwareanbieter für den öffentlichen Personentransport hatte plötzlich das „Handtuch geworfen“ und gekündigt. Sehr bald sollte ein neues, vielversprechendes Produkt der nächsten Generation auf dem ungeduldig wartenden Markt eingeführt werden. Alle finanziellen Zahlen, die der Zentrale gemeldet wurden, sahen gut bis hervorragend aus, vielleicht ein wenig zu gut.

Nur noch ein paar letzte Tests mussten durchgeführt werden, bevor der neue Stolz des Unternehmens in die freie Wildbahn entlassen werden konnte.

Diesmal bestand ich allerdings auf einer 6-wöchigen Analyse vor Übernahme meiner Aufgabe. Außerdem äußerte ich den Wunsch, zwei weitere Kollegen hinzuziehen zu können, die zwar erfahrene „alte Hasen“, aber gleichzeitig mit den neuesten Methoden vertraut waren – eine seltene Kombination. Ein unbestimmtes Bauchgefühl am Anfang sagte mir nämlich, dass ich alleine nicht in der Lage sein würde, die Herausforderungen all der verborgenen Schichten zu bewältigen, sollte es da mehr geben als auf den ersten Blick erkennbar war.

Und wie sich herausstellte, lauerten da tatsächlich einige Monster im Untergrund.

  • Die „paar letzten Tests“ waren in Bezug auf Teamgröße und Fähigkeiten dramatisch unterbesetzt. Diese kritische Projektphase war, weil die Zeit am Ende knapp wurde, in einen lächerlich engen Zeitplan gepresst worden,

  • Niemand hatte eine Ahnung, wie viele Fehler zu erwarten waren oder wie man sie schätzen sollte, die Anwendung von Fehlermodellen war unbekannt.

  • Da die Entwicklung traditionell weit hinter dem Zeitplan lag, wurden notwendige Refaktorisierungsschritte verschoben oder ganz übersprungen, was zu einer nun fehlerhaften Architektur führte. Infolgedessen hatte sich im Laufe der Jahre eine riesige Menge technischer Schulden angesammelt.

  • Als ob das nicht genug wäre, hatten Anschuldigungen und gegenseitige Vorwürfe innerhalb des Teams zu gestörter Kommunikation und in einigen Bereichen zu einer toxischen Kultur der Zusammenarbeit geführt.

  • Es ist fast überflüssig zu erwähnen, dass in der Entwicklung, Wartung und Projektmanagement veraltete Methoden verwendet wurden,

  • Unsere Kunden hatten ihre sensiblen Antennen bereits auf uns ausgerichtet. Bei Vor-Ort-Besuchen ließen sie uns an ihrem deutlichen Unbehagen teilhaben.

Die Liste könnte weitergehen, das aber Top-Management gab sich ahnungslos: Fehler passieren nun 'mal, keine Software ist frei davon. Warum können die Kunden denn niemals zufrieden sein?

3 Der Betrieb frisst Deine ganze Zeit

Bei meinem dritten Interim-Einsatz wurde ich beauftragt, Marktforschung, Bewertung, Auswahl, Einkauf und Einführung bis zum Go-Live einer neuen wichtigen Infrastruktursoftware durchzuführen. Ich war jetzt erfahrener, gut ausgerüstet mit meinem Sieben-Schritte-Auswahlverfahren und in guter Stimmung.

Und doch, da mein Vorgänger in dieser Rolle das Unternehmen plötzlich in einer Art Panikmodus verlassen hatte, fand ich dort eine große Verwirrung unter den Himmeln vor. Natürlich musste als kleine Nebenaufgabe, kaum erwähnenswert, das operative Geschäft überwacht werden.

Es stellte sich heraus, dass das operative Tagesgeschäft, durch eine miserable Datenqualität, kombiniert mit nicht vorhandenen Prozessdefinitionen und unterirdischen Fähigkeiten des unterbesetzten Teams, bis zu 80% meiner verfügbaren Zeit beanspruchte. Die hastige Implementierung einiger provisorischer Teilautomatisierungen durch Skripte und Bürosoftware konsumierte weitere 15%, was nur 5% für die Aufgabe ließ, für die ich engagiert worden war.

Mittlerweile hatte ich jedoch gelernt, dass ein Interim-Manager intern ist, das bedeutet, er kann von innen heraus agieren und Entscheidungen über Budget, Ziele und Ressourcenzuweisung im Allgemeinen beeinflussen. Am Ende rettete es mich, diese Karte zu spielen. Es ermöglichte mir, einen Berater zu engagieren, der mich bei den eher generischen und daher auslagerbaren Aufgaben unterstützte.

4 Diese Erfahrungen machten mich nachdenklich. 

Was ist da passiert? Wurde ich absichtlich über die wahre Natur des Jobs im Unklaren gelassen? Wollten meine Kunden mich böswillig in eine Falle locken? Oder glaubten sie selbst wirklich und aufrichtig, was sie mir über die aktuelle Situation erzählten? Sahen sie nur die Spitze des Eisbergs und erkannten die darunter lauernden Bedrohungen nicht? Oder zogen sie es vor, nicht so genau hinzuschauen? Schließlich ist bisher immer alles gut gegangen, wie die Zahlen „bewiesen“.

Wenn es um Interim-Management geht, lautet das vorherrschende Narrativ „eine Vakanz überbrücken“. Es wird allgemein angenommen, dass ein Manager einer wichtigen Unternehmensfunktion aus irgendeinem Grund plötzlich ausfällt. Es kann einige Zeit dauern, bis ein neuer Manager, der richtige, ernannt wird und sich in die Rolle eingearbeitet hat. In der Zwischenzeit muss die Lücke gefüllt werden. Dieser kapazitätsbedingte Bedarf wird von denen als Hauptgrund angesehen, die weniger mit diesen Umständen zu tun haben – und in einigen Fällen entspricht dieses allgemeine Verständnis sogar der Realität.

Das Expertise-Argument gilt wie in der Beratung so auch hier, jedoch in Verbindung mit einer Umsetzung. Und schließlich kommt es manchmal sogar vor, dass de Wunsch, die Aktivitäten diesmal anders zu gestalten, z.B. durch die Einführung von Lean- oder Agile-Managementpraktiken, keine andere Wahl lässt, als die richtige Person für diese schwierige Aufgabe von außen zu engagieren, um eine turbulente Zeit zu bewältigen – bis sich der Staub gelegt haben würde.

Meistens jedoch wird schnell klar, dass es da noch mehr zu tun gibt.

Die ignorierten Schulden, die verborgenen Schichten, die ebenfalls bearbeitet werden müssen, existieren tatsächlich. Dass niemand davon wüsste, ist eher seltener der Fall. In den meisten Fällen haben die Kollegen eine recht gute Vorstellung von dem aufgestauten Handlungsbedarf sowie den Fähigkeiten und Möglichkeiten ihrer eigenen Organisation. Sie unterschätzen möglicherweise nur die Größe der Altlasten und ihre möglichen Auswirkungen.

Aber der Prophet gilt bekanntlich nichts in seiner eigenen Organisation. Jeder Überbringer schlechter Nachrichten wird beschuldigt, insgeheim eigennützige Motive zu verfolgen. Sie stehen für unangenehme Wahrheiten, die normalerweise zu deutlich mehr Aufwand, höheren Kosten und Terminverzügen führen würden. Das Management würde am liebsten gar keine Nachrichten hören, es sei denn, es sind gute Nachrichten. So schleicht sich eine Art „Hofberichterstattung“ ein: Die Zahlen, die nach oben gemeldet werden, sehen gut aus. Aber darunter schwelen die Probleme weiter – bis sie irgendwann nicht mehr verborgen werden können.

Die Schlussfolgerung lautet: Niemand will Dich in eine Falle locken oder lügt Dich absichtlich an. Vielmehr führen häufig Selbsttäuschung, bequeme Illusionen und gestörte Kommunikation oder erfolgreich geübte Ignoranz letztlich zu unangenehmen Entdeckungen.

Also sei besser auf eine Überraschung vorbereitet, wenn Du einmal etwas tiefer bohrst.


2024-07-31

The Interim Managers’ surprise


Often you aren’t told the truth until you are in 

Prior to my career as an interim manager, while working as a management consultant, I learned by practical experience that there can be three honest reasons for a company to bring in an external consultant: 

  • To acquire or at least utilise specialist knowledge that they do not have or do not want to maintain internally,

  • to supplement insufficient capacity, in particular to enable change activities and

  • to obtain an unbiased external view of the internal situation, possibly combined with the added value of positioning in the market compared to others

And then there are a number of not-so-honest, not-so-decent reasons to use external expertise to fuel clandestine underground activities in internal turf wars, to cover up one's own inaction in emergencies, to throw a competitor out of the race for the top ... There are more such cases that even a sick mind can imagine.

To be honest, I had no idea at first, but I had to learn quickly.

Then, when I entered the arena of interim management, I came across a similar dualism of perception and reality that I would like to share with you.

1 Unpleasant discoveries

Managing the programme to centralise 25 regional instances of an outdated core banking system and replace it with a new and modern system was a daunting but prestigious task. Good thing they hired some additional, qualified resources. It should be doable, I thought. 

Beneath the visible surface, however, the iceberg had an enormous base of invisible challenges that were waiting to be solved as a prerequisite for success.

  • The 25 instances were in a widely different shape, of various versions, were used in a variety of different ways according to very distinct processes. As customers in den regions had diverse preference regarding the consumed banking products, different functionality was prevalent there too.

  • Availability and security, while not great and often bemoaned, were tolerable due to distributed risk - but a significant boost was required with centralisation. Business continuity management, standard operating procedures, cyber security all required a substantial improvement.

  • My assignment, I learnt, was not the first. A few predecessors had tried before me - and failed. Nurturing the hope of joint success in the now exhausted team turned out to be no easy task.

In short, it turned out that there would be a decent chance to have some fun.

2 Brilliant numbers – hidden debts

After a few years had passed, I had a second chance to shine - or fall into the trap ...

A manager of a professional services department with around 60 employees at a software provider for public transport suddenly threw in the towel and resigned. Very soon, a new, promising next-generation product was due to be launched on an impatiently waiting market. All the financial figures reported to the head office looked good to excellent, perhaps a little too good.

Only a few final tests needed to be carried out before the company's new pride and joy could be released into the wild.

This time I insisted on a 6 weeks analysis. Also, I demanded to add two more colleges, who were experienced seniors but have kept up with newest methodologies at the same time – a rare combination. A gut feeling at the beginning told me that, if there is more to it than meets the eye, I alone will not be able to cope with the challenges of all those hidden layers.

And, as it turned out, there indeed was more to it.

  • Those “few final tests” were dramatically understaffed regarding team size and skills. This critical phase was squeezed into a ridiculously tight schedule,

  • No one had any ideas about how many flaws were to expect nor how to estimate them, the application of error models was unknown,

  • As development was usually behind schedule, necessary refactoring steps were postponed or skipped altogether, resulting in a now flawed architecture. As a result, a huge amount of technical debt had accumulated over the years.

  • As if this were not enough, recriminations and mutual accusations within the team had led to distorted communication and, in some areas, a toxic culture of cooperation, 

  • Almost superfluous to mention that outdated methods were used in development, maintenance and project management,

  • Customers had also adjusted their sensitive antennae. They now felt increasingly uncomfortable, as on-site visits revealed.

The list could go on, but the top management had no idea: mistakes happen, no software is free of ‘bugs’. Why can customers never be satisfied?

3 Operations eats up your time

In my 3rd interim assignment, I was tasked with market research, evaluation, selection, purchasing and introduction until go-live of a major new infrastructure software. I was more experienced now, was well-equipped with my seven-steps procedure at hand and in a good mood.

And yet, as my predecessor in that role had left the company all in a sudden in a kind of panic mode, I found there a great confusion under the heavens. Of course, as a minor side-task, hardly worth mentioning, operational business had to be supervised meanwhile.

I turned out that a lousy data quality combined with non-existent process definitions and subterranean skills of the understaffed team the BAU (Business as usual) or business operations took up to 80% of my available time. Hasty implementation of some makeshift semi-automation through scripting and office software accounted for another 15%, leaving a mere 5% for the obligation I was contracted for.

Meanwhile however I had learned that an interim manager is internal, means he may act from inside, influencing decisions about budget, goals and resource allocation in general. In the end playing this card saved me by allowing me to contract a consultant to support me in the more generic and hence outsourceable tasks.

4 Those experiences left me wondering.

What had happened there? Was I deliberately lied to about the true nature of the job? Did my clients intend to lure you into a trap? Or did they themselves truly and sincerely believe what they were telling me about the current situation? Did they only see the tip of the iceberg and didn't even recognise the threats lurking beneath the surface? Or did they prefer not to look so closely? After all, everything has always gone well so far, as the figures ‘prove’.

When it comes to interim management, the prevailing narrative is ‘bridging a vacancy’. It is generally assumed that a manager of an important company function suddenly drops out for some reason. It may take some time for a new manager, the right one, to be appointed and for him/her to quickly familiarise with the new role. Meanwhile the gap needs to be filled. This capacity-related need is seen as the main reason by those who have less to do with these circumstances - and in some rare cases this general understanding even corresponds to reality.

The expertise argument like in the consulting business also applies here, but in conjunction with the expectation of execution. And finally, sometimes it even happens that the willingness to do the work differently this time, e.g. changing management practices to Lean or Agile, leaves no choice but to hire the right person for this difficult task to lead through a turbulent time - until the dust settles.  

More often than not, however, it quickly becomes apparent that there is more to it. 

The ignored debts, the hidden layers, which also need to be worked on, do indeed exist. Rarely is it the case that nobody has seen them. In most cases, colleagues have a good idea of the capabilities and possibilities of their own organisation. They may just underestimate the size and impact.

But the prophets are not well received in their own organisation. Every bearer of bad news is accused of being secretly self-serving. They deliver uncomfortable truths anyway, which would usually lead to significantly more effort, higher costs and later deadlines. Management would prefer not to hear any news at all, unless it is good news. So, a kind of ‘court reporting’ creeps in: The figures that are reported upwards look good. But underneath, the problems continue to smoulder - until at some point they can no longer be hidden.

The conclusion is: Nobody wants to lure you into a trap or is deliberately lying to you. Rather, self-deception, cosy illusions and distorted or even muted communication or traditional ignorance often lead to an unpleasant surprise. 

So you better be prepared for a surprise once you dig a little deeper.

2024-07-23

7 questions about the job of an interim manager

 


A couple of years ago, my son came back from school with the homework assignment to describe his father's job in a short interview of about 7 questions. My challenge was to keep it short, emphasise the essentials and make it understandable for my son's classmates. My son got a good grade for it. And even today, after all these years, I think this concise but timeless document has retained its power. What do you think?

1 What is your profession?

My profession is that of an interim manager, that is a manager for a limited period of time, hence ‘interim’. An interim manager actually does what a ‘normal’, i.e. salaried, manager does. Frequently however he finds himself in a special situation. The interim manager usually is called in when a salaried manager suddenly is no longer available. Or it may be that there are tasks to be completed for which it is better to employ someone ‘from outside’.

2 Why did you choose this career

The tasks that an interim manager has to perform rarely resembles the usual operational routine. Due to the special situation in which he is deployed, his tasks are nearly always new and exciting. Creating something new in a constantly changing company has a special appeal for me. It never gets boring. And that's why I chose this job.  By the way, it's not badly paid either.

3 What training did you have to complete and how long did it take?

There is no proper training programme for interim managers. This job profile is relatively new. The requirements profile to be fulfilled is not (yet) formally defined. Nevertheless, an interim manager must have a range of skills. It is good if they were once managers in a senior position themselves. But the skills, knowledge and experience of a management consultant are also very helpful here. From the list above, it has certainly become clear that an interim manager should have gained several years of experience in a responsible position after completing his studies. This can easily add up to 5 to 10 years of professional experience before you take on such a role.

4 What activities do you carry out in your job?

On the one hand, I continue the operational business that I took over from my predecessor.  However, as this is generally not enough, I set up one or more change projects. These should revitalise the company or make it fit for certain important projects in the first place.  To do this, I need to have a good understanding of the business, i.e. the markets, customers, suppliers and service processes. As this is about change management, I also need to take the people involved ‘on the journey’.  After all, the plans will only succeed if everyone is on board.

5 What advantages and disadvantages do you experience in your job?

The advantages of this profession also entail its disadvantages. And what I see as an advantage, others may see as a disadvantage. I see the advantages: Always new tasks in new companies, but also in new locations and with new people. The tension that arises when it's not entirely clear at the beginning whether the big change will succeed. And in the end, the satisfaction of having succeeded, perhaps having saved an entire company.

That actually already lists the disadvantages: The uncertainty of the new situation, long and very stressful working days, travelling times, the pressure of expectations that weighs on me, sometimes even outright rejection. And there's not always anything that can be salvaged. Those are rather sad cases then.

6 Do you have to do regular training or is that not necessary in your job? 

Yes, of course I do. Maybe that's nothing special nowadays. Don't we have to keep on learning in every profession? However, an interim manager is often called in when a company has ’missed the train’ to an essential development. He himself must therefore always be up to date, both professionally and in terms of working and management methodology. There is no set training programme for this. A lot of personal initiative is hence required.

4.7 Do you know of any professions that are similar to yours? 

The job of a manager in a volatile environment, i.e. in markets that change quickly, probably faces similar challenges. Project managers of major projects or explicit change management projects, so-called change managers, can also grow into such a role.  And finally, management consultants who are not afraid to implement their own recommendations within the company may have a similar job profile.

7 Fragen zum Beruf eines Interim Managers

Vor einigen Jahren kam mein Sohn mit der Hausaufgabe aus der Schule zurück, den Beruf seines Vaters in Form eines kurzen Interviews von etwa 7 Fragen zu beschreiben. Meine Herausforderung bestand darin, mich kurz zu fassen, das Wesentliche hervorzuheben und für die Mitschüler meines Sohns verständlich zu formulieren. Mein Sohn bekam dafür eine gute Note. Und noch heute, so meine ich, nach all den Jahren hat dieses knappe aber zeitlose Dokument seine Aussagekraft behalten. Was meint Ihr?

1 Was ist Dein Beruf?

Mein Beruf ist der eines Interim Managers, also eines Mangers auf Zeit, daher „Interim“. Ein Interim Manager macht eigentlich das, was ein „normaler“, also angestellter, Manager auch macht. Eigentlich – denn häufig befindet es sich doch in einer Sondersituation. Die entsteht dadurch, dass ein angestellter Manager plötzlich nicht mehr zur Verfügung steht. Oder es kann sein, dass Aufgaben zu erledigen sind, für die man lieber jemand „von draußen“ nimmt.

2 Warum hast Du diesen Beruf gewählt

Die Aufgaben, die ein Interim Manager zu erledigen hat, entstammen selten der üblichen operativen Routine. Aufgrund der Sondersituation, in der er eingesetzt wird, sind auch seine Aufgaben immer wieder neu und spannend. In immer wieder neuen Unternehmen, Neues zu schaffen, das hat für mich seinen besonderen Reiz. Das wird nie langweilig. Und deshalb habe ich diesen Beruf gewählt.  Übrigens, schlecht bezahlt wird er auch nicht.

3 Welche Ausbildung musstest Du absolvieren, wie lange dauerte die Ausbildung?

Eine regelrechte Ausbildung zum Interim Manager gibt es nicht. Dieses Berufsbild ist vergleichsweise neu. Das zu erfüllende Anforderungsprofil ist (noch) nicht formal definiert. Dennoch muss ein Interim Manager eine Reihe von Fähigkeiten mitbringen.  Gut ist es, wenn er selber einmal ein Manager in einer leitenden Position war. Aber auch die Fähigkeiten, Kenntnisse und Erfahrungen eines Unternehmensberaters sind hier sehr hilfreich. Aus der Aufzählung ist sicher klar geworden, dass ein Interim Manager nach seinem Studium einige Jahre Erfahrung in verantwortlicher Position gesammelt haben sollte. Da kommen dann leicht 5 bis 10 Jahre Berufserfahrung zusammen, bevor man eine solche Aufgabe übernimmt.

4 Welche Tätigkeiten übst Du in Deinem Beruf aus?

Zum einen führe ich das operative Geschäft weiter, das ich von meinem Vorgänger übernommen habe.  Da es damit aber in aller Regel nicht getan ist, setze ich eines oder mehrere Veränderungsprojekte auf. Diese sollten dazu führen, das Unternehmen wieder zu revitalisieren oder überhaupt erst fit zu machen für bestimmte wichtige Vorhaben.  Dazu muss ich ein gutes Verständnis vom Geschäft haben, also von den Märkten, den Kunden, Lieferanten und den Leistungsprozessen. Da es um Change-Management geht, muss ich aber auch die beteiligten Menschen mit „auf die Reise“ nehmen.  Denn nur, wenn auch alle mitmachen, werden die Vorhaben gelingen.

5 Welche Vor- und Nachteile erlebst Du in Deinem Beruf?

Die Vorteile dieses Berufes bedingen auch gleichzeitig seine Nachteile. Und das, was ich als Vorteil sehe, mögen Andere vielleicht eher als Nachteil empfinden. Ich sehe als Vorteile: Immer wieder neue Aufgaben in neuen Unternehmen, aber auch an neuen Standorten und mit neuen Menschen. Die Spannung, die entsteht, wenn zu Beginn noch nicht ganz klar ist, ob die große Veränderung auch gelingen wird. Und hinterher die Befriedigung, es geschafft zu haben, vielleicht ein ganzes Unternehmen gerettet zu haben.

Damit sind eigentlich auch schon die Nachteile aufgezählt: Die Ungewissheit der neuen Situation, lange und sehr anstrengende Arbeitstage, Reisezeiten, der Erwartungsdruck, der auf mir lastet, manchmal auch offene Ablehnung. Und nicht immer ist noch etwas zu retten. Das ist dann eher traurig.

6 Musst Du Dich regelmäßig fortbilden oder ist das in Deinem Beruf nicht notwendig? 

Doch, das muss ich natürlich. Vielleicht ist das heute nichts Besonderes mehr. Müssen wir uns nicht in jedem Beruf fortwährend weiterbilden? Ein Interim Manager aber wird häufig gerufen, wenn ein Unternehmen eine Entwicklung „verschlafen“ hat. Er selber muss also sowohl fachlich, wie von den Arbeits- und Managementmethoden her immer auf der Höhe der Zeit sein. Dafür gibt es keinen festgelegten Ausbildungsgang. Da ist viel Eigeninitiative gefragt.

7 Kennst Du Berufe die Deinem ähnlich sind? 

Der Beruf eines Managers in einem volatilen Umfeld, also in Märkten, die sich schnell ändern, hat sich vermutlich ähnlichen Herausforderungen zu stellen. Projektleiter von Großprojekten oder expliziten Change-Management Projekten, sogenannte Change Manager, können auch in eine solche Rolle hineinwachsen.  Und schließlich können Unternehmensberater, die sich nicht scheuen, Ihre eigenen Empfehlungen im Unternehmen auch umzusetzen, ein durchaus ähnliches Berufsbild aufweisen.