Cybernomics Answers Jesuits’ Call for Tech Help

Globe and Mail Case Study Article

Religious group turns to outsourcing to create a new network to connect with brothers around the world

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DIANE JERMYN
SPECIAL TO THE GLOBE AND MAIL

OCTOBER 29, 2008

For Jim Webb, 64, and a Jesuit priest since 1973, the changes in technology have been dramatic. “I’ve gone from nothing to Facebook,” says Father Webb. “In the 1980s, a fax was high tech. Then, in the ’90s, you almost wanted to throw your computer out the window.

Today, when you arrive somewhere, the first question you ask is whether IT is available.”
The Jesuits are the largest male religious order in the Catholic church, with nearly 20,000 priests and brothers working in ministries in 112 countries on six continents.

As provincial superior of the Jesuits in English Canada, Father Webb guides and oversees the work of 170 Jesuits, including parishes, retreat houses, chaplaincies, high schools and colleges from St. John’s to Vancouver.
“We also have people in Jamaica, India, Africa, the Ukraine and more,” says Father Webb. “They all want to be in touch.”

Easier said than done, when the aging tech system at the Jesuits’ Toronto-based administrative centre was on its last legs. Assistant treasurer Barry Leidl helped design their previous system with another company, but didn’t have the expertise to design the complex network they needed in a networked world.  So, in 2001, the Jesuits outsourced their IT functions to Cybernomics, a Toronto company that uses green IT methodologies to show businesses how they can improve their bottom line while still protecting the environment.

“We get a whole pool of knowledge by outsourcing,” Mr. Leidl says. “To get that knowledge in one person would be tough and cost a lot of money.  We’re not that big. We couldn’t have this level of technology and infrastructure if we didn’t outsource, plus have backup with technology and people.”

Mr. Leidl admits there were a few bumps at the beginning of their relationship with Cybernomics, because the Jesuits wanted to continue using their old system and didn’t want to put money into infrastructure. That led to maintenance problems and downtime, and management began to question outsourcing. “We spent a lot of time getting to the root of what our needs and expectations from Cybernomics were, and what we expected from outsourcing,” Mr. Leidl says. “But with a new system designed from the ground up, management is on board.”

According to the founder of Cybernomics, Jean-Jerome Baudry, who has worked as the Jesuits’ IT provider for nearly eight years, the more accurate, complete and practical the documentation, the easier it is to know if things are on the right track or whether problems are brewing. “As in any relationship, you sometimes hit obstacles, and how both sides deal with those obstacles makes all the difference,” Mr. Baudry says.
Amar Varma, founder of Toronto’s Extreme Venture Partners, a venture capital firm that invests in Web and mobile business sectors, agrees. “What’s key is understanding what you are getting, and how the management interface between both companies works. I have seen people outsource functional areas
of a business without fully understanding the nature of what it is they should expect in return, which leads to misguided expectations down the road. The other thing people seem to forget is that though something is outsourced, it still requires time cycles to manage the process, to ensure it is being done to
meet expectations.”

Security is another concern that companies often have when bringing in a third party. Mr. Baudry suggests the biggest threat may come from within.  “Here in Canada, we are more concerned that those outsourced people are going to take our data and that information will get out, but nobody looks at
their own staff and hiring policies,” he says. “[Insiders] have access to confidential information, use of your computer system and take data so they can
work from home.”

This is another reason why documentation is vital, Mr. Baudry says. “If you don’t document internally, as well as externally, when that employee leave or goes on vacation, how do you gain access to your data?” he asks. “Transparency is the key, not just for the outsourcer, but internally as well.”
Whether outsourcing is the best choice from a bottom-line perspective may depend on what stage your business is at. “Outsourcing can be more expensive when a company is still very small than doing a job in-house as an extra task in someone’s overall responsibility,” says Mark Binns, co-founder of Torque Customer Strategy in Toronto. “I think there is a natural tipping point for most business functions on when to outsource, and it should be measured mainly by value-return versus cost.”
Mr. Leidl says that outsourcing has been better for his budgeting purposes because he knows what his costs will be. As well, since the Jesuits do a quarterly review with Cybernomics, he can adjust for time and services depending on their needs - something that’s not possible with a full-time salaried person.

While Father Webb says the Jesuits have adapted well to their new IT system - even priests over 80 are tech-savvy - his biggest challenge has been to find a balance between the spiritual, meditative state and the need for instant response that the technology demands. “I can hardly spend a day without going online,” says Father Webb, with a faint sigh. “It puts things that aren’t urgent on the urgent plane.”
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BENEFITS OF BARTERING
“If you don’t have the money for outsourcing, consider a barter,” says Jen Evans, president of Sequentia, a Toronto-based communications agency.  When her company first started out, Ms. Evans did a lot of bartering - services for services - to keep costs low and build a name for her business. Some barters were good, such as developing a Web presence for a tech-support outsourcing firm in exchange for a year of office tech support - phones,

Internet, devices and computers - for her company. After a year, both companies outgrew the barter, but it was an excellent deal at the time, she says. But some deals were bad. One bartered relationship with a business coach ended with Ms. Evans paying out in cash, something her company could ill afford back then. She blames her bad experience on a difference in perceived value for services.  What makes a good barter? Ms. Evans says it’s important to have a concisely written level-of-service agreement that outlines clear, perceived value for the participants. Plus, the best barter relationships are short term.
“Sometimes it doesn’t work … just because equating the value is very difficult,” says Cybernomics president Jean-Jerome Baudry. “The problem is the infighting, ‘My product is worth more than yours.’ ”
What Ms. Evans has learned: Put everything in writing. “Everything sounds promising at the beginning, but it’s amazing how understandings between two parties can [result in] vastly different perceptions on both sides,” she says. Make sure the company is financially solid, be clear on who will be your contact, how services will escalate, and what will happen if things go wrong, she adds.

At tax time, Ms. Evans suggests companies consult a professional. She handled it by treating the value of the barter as revenue. The companies involved can do an exchange of cheques for the same amount, or the difference if there is one.

Diane Jermyn
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In a nutshell
Do due diligence about the company before making any bartering agreement. Be clear about terms, perceived value and level of service. Know who your contact person is, the escalation, and what happens if it doesn’t work out. Put everything in writing and document along the way.
Pros
Cash flow management in slower times; good service for lower cost; possible partnerships among companies for business development if it works out.
Cons
Tough to administer and manage; keeping expectations in check can be a huge issue when things don’t turn out the way everyone expected; extrication can be tough. Sometimes, revenue-generating clients get most of the attention, leaving barters to slip to the bottom of the importance ladder.

Diane Jermyn