Leaders are often confronted with questions about whether they should develop a capacity or tool in-house or use external partners. Here are guidelines for calling.
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I find myself quite useful throughout the house and have done projects from framing carpentry to large electrical work. When I am confronted with something that needs to be done at home, I notice that I am generally biased to do it myself. In explaining my reasoning to my wife, she listens patiently and then proposes that I cut my already conservative timeline by three and cut my estimated cost savings by half. Unfortunately, she is usually right. Despite my careful and conservative planning, the work always takes longer than expected, and my savings take a few things through acquiring new tools or requiring additional material for the inevitable refurbishment.
Organizations can have similar do-it-yourself personalities, with the natural bias of doing every project – no matter how big or small – internally. Just like homeowners, some organizations are cost-conscious and that is their motive for self-building; others see DIY as an opportunity to develop new skills. A more nuanced element may be a cultural preference within your organization to get work done without resorting to “outsiders”, the use of which would be a kind of defeat. It is worth investigating these prejudices and environmental factors before they automatically go to or away from do-it-yourself, because the situation justifies that, especially because the influence of organizational culture can be incredibly strong but hard to detect.
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The price of speed
Speed is difficult to estimate for a task that you have never done before, and double if your team has other obligations. If you create a project that you have rarely or never tried, there will be a significant productivity gap as you learn the skills and possibly rework early efforts. These activities are difficult to estimate, and if you are planning a do-it-yourself planning, you must endeavor to spend a considerable amount of time on unforeseen events built into your schedule.
In many cases, the slower pace of a do-it-yourself effort may be worth the payoff; however, there are times when demands from the market or organization determine a faster pace. Just as a person likes to tackle the renovation of a guest bedroom, but leaves the most used bathroom with hired help, there are times when speed takes precedence over most other concerns and requires additional help.
The opportunity costs
The main cause of savings by implementing a project in-house is the cost of external labor, which can be significant, especially for specialized or rare skills. However, the use of your internal labor is not completely free. The people with whom you are doing a do-it-yourself effort are likely to have other responsibilities, and for greater efforts, the focus of entire groups or teams will be diverted from their current activities. Just as the weekend mechanic should ask if their time could be better spent on their day’s work or to enjoy some free time, you should consider the opportunity costs in both times and find it when you divert the focus of your team.
Do you really need that skill?
For many do-it-yourselfers, whether it is complex IT organizations or individuals, acquiring new skills is a major attraction for doing the job internally. Although I may never have tiled another floor, I am glad I have those skills. However, some skills have such limited applicability, or are such a function of labor input, that they are not worthy to acquire. For example, in my construction projects I have always outsourced hanging plasterboards. It requires many specialized tools for single use and is groundbreaking work that also requires a level of artistry to do it well. Similarly, skills such as the development of customized software on a limited-use platform can be better left to outsiders who have the skills, tools and instances that would take months and significant costs to replicate.
Check your prejudice
If you notice that you are constantly carrying out all projects internally or outsourcing every task that comes your way, take the time to analyze why you are making these decisions. Many leaders and even entire organizations have a preference for do-it-yourself versus outsourcing that is rooted in unhealthy cultural organizational problems. Making DIY decisions based on cultural expectations rather than the facts in the field can be a recipe for disaster.
Ultimately, a do-it-yourself decision is incredibly important, and it is a decision that IT leaders make without detailed analysis based on old habits or unrecognized assumptions about costs and benefits. With a little diligence, your do-it-yourself and outsourced efforts will run smoothly and benefit your organization in the short and longer term.
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