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ENTERPRISE STRATEGIES: AHEAD OF THE CURVE       http://www.infoworld.com
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Tuesday, November 16, 2004

TRACKING MANAGEMENT BUGS

By Tom Yager

Posted November 12, 2004 3:00 PM Pacific Time

As regulatory audits loom, wise executives have long ago abandoned the
"save everything" approach to regulatory compliance, which is akin to
stuffing receipts into a shoebox while hoping the IRS will go knocking
elsewhere.

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Wise executives know it's smarter to watch for red-flag transactions,
and then, when the business is audited, they can produce a record that
proves knowledge of various regulations and diligence in complying with
them.

I just finished a demo of a product called E-RiskWare from Obian. It's a
business risk management solution that helps companies comply with
Sarbanes-Oxley. From an IT standpoint, the demo left me a bit dazed. But
then my inner executive surfaced, and I saw that E-RiskWare handles
communication among managers, the board, and external auditors.
E-RiskWare creates ad hoc teams, some of whom only get reports and
others of whom can subscribe to risk alerts to get real-time updates
that allow management teams to respond proactively. For example, if the
CFO finds numbers that don't add up in the next quarter's financial
reports, he or she can submit the issue to the system. Those wired most
tightly into the CFO's loop get going on the solution. Their
communication, the documents they create, and the annotations each team
member adds to the documents are stored in an evergreen record from
identification to resolution.

The longer I examined the product and materials, the clearer it became
that E-RiskWare is a well-thought-out adaptation of an enterprise
software development solution or bug-tracking system for business
management. I can't say that it's unique; business management software
is not my specialty. Yet, wouldn't you feel better knowing that your
bosses, legal team, and the board of directors are all accountable to
one another the way developers and other IT workers are? I, for one,
would have loved countering with hard evidence the defense I heard so
often from those in the hot seat ("the bastard never told me"), while
dissuading managers from stealing credit for their employees' ideas.

The truth is, we all belong in that fishbowl, at least those of us who
aspire to advance our careers. The downside of constant auditing is that
if you get lazy or screw up, everybody on the team will know it. The
upside is that if you're the one who sees the transposed fields on the
quarterly report, in a transparent system you're seen as the root of the
process that gets the report fixed and reaudited before the report is
submitted. If your boss ignores the fact that you saved the company's
butt and his boss's boss ignores it, the chairman of the board is going
to walk, weeping, into your office and hand you the keys to her
Mercedes. And she's going to see that two levels of management failed to
recognize your contribution.

Stereotypical notions about developers pointing fingers, passing the
buck, and screwing around on company time contributed to the uptake of
systems that track issue response time down to the second and code
coverage down to the line of code. Software is most reliable when it is
created in an atmosphere of real-time transparency and to-the-person
accountability.

It took strict regulations and a demo of Obian's risk management system
to bring me around, but buggy business models present a bigger risk than
buggy code.

Tom Yager is technical director of the InfoWorld Test Center.


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