The Cost Center Trap

Mary Poppendieck – LeanEssays

IT projects used to be about – or at least were perceived to be about – building things. That determined not just how the work was done, but also how it was managed and accounted for. That leads to a focus on the production of assets, which in turn depreciate. And treating software as a capital asset has consequences not just in arcane accounting treatments, but in how digital can be measured and managed – and those ways are, this post argues, counter-productive if we want to see sustained continuous agile improvement.

That’s not just an interesting argument in its own right, it’s also a great example of how understanding ‘the way things are done round here’ requires several layers of digging and goes well beyond ‘culture’ as some amorphous driver of perverse behaviour.

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