The Secret To Being A Successful CIO
The Number 1 Enterprise Priority
Information Week reported last week upon the latest IT Trends Study. Once again this study had IT-business alignment as the No. 1 priority for enterprises. The article’s author even exclaimed within his piece isn’t this topic becoming “a bit “passé”. We have confirmed in our interviews of CIOs that they place connecting what IT is doing to business strategy higher than things like technical orchestration and overall process excellence. Hunter and Westerman say in The Real Value of IT that doing IT-Business Alignment well involves “showing the value of IT as an investment in business performance—operationally and financially”.
CIOs Need The Businesses Help With IT Demand Management
One CIO that we talked to suggested that accomplishing what Hunter and Westerman suggest starts with better IT demand management. “IT leaders increasingly need to get control over their IT demand management. After all, they have limited dollars, limited space, and limited people. They need to partner with the business to get the prioritization done”. This CIO suggests it is especially important to get this right these days because of the pace at which the tech landscape is changing.
The explosion of technologies is certainly making the need for IT-business alignment even more critical. This CIO has Mobile, Cloud, Social, and Big Data all key priorities at the same time. How does one select between them without having their customers in the room with you?
Another CIO suggests that IT-business alignment is increasingly about three things:
- Getting the CFO to understand technology is not a cost center
- Getting the business to understand that IT isn’t separate
- Getting business leaders to understand technology better. “I want business leaders to start asking for digital services that support their product and service offerings”.
A New Type Of CIO Needed?
Clearly, if CFOs are part of the alignment equation, CIOs should be looking at their tech priority list carefully. Some CIOs suggest that the emphasis on IT-business alignment brings to the forefront skills like collaboration and teamwork. And this change may require a different kind of CIO. The CIO role today is clearly becoming more about understanding the business than understanding technology. It is becoming more about business alignment than technology alignment. This means the biggest value added from the CIO still will be that they can align business needs with the technology fabric required to deliver it.
Presentations Need To Be About A Business Need
Several CIOs, in fact told me that they will not take a vendor presentation on a purely techie topic anymore. If they take a meeting from a vendor, they will almost always involve their business partner. They won’t do it alone. Given this, the topic needs to change. “Business partners will be suspicious of a meeting request filled with technical terms. They do not want a solution looking for a problem. They want to be looking for a solution to their problem”. Given this, to involve the CIO today, you need to have a business value proposition.
Even COBIT 5 Suggests That Alignment Matters
Even COBIT 5 in fact suggests says that IT organizations should be measured by their alignment of IT and business strategy. COBIT 5 even provides multiple KPIs that dig in on the topic. Given this, it may be “a bit “passé” but it is core to creating a successful IT organization for today and for the future.