Today's Chief Information Officer must assume several key roles:
Technological leader with broad knowledge base...full member of the
management team...manager of expectations...marketer of the IT function...agent
of change...master politician...skilled manager/executor.
The CIO, moreover, must be able to deliver in several key respects:
to formulate future technology architecture, train and develop staff and
create a business systems applications strategy.
And the CIO must function in a business environment characterized by: speed of business change, reengineering of business practice,
globalization, flattened organizations, and ongoing mergers/acquisitions.
Why CIOs Succeed
The Davis survey of CIOs identified 20 reasons why CIOs succeed. Although they may seem redundant, they reflect the variety of
ways which CIOs articulate the basis for their effectiveness.
Chief among them is the CIO's participation/partnership with the CEO in the
development of business strategy.
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The CIO is a full participant in the formulation of business strategy and is able to support that strategy. Additionally, the CIO is able to articulate a technology vision and its role in the enterprise.
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The CIO has made Information Technology a full partner with the business and contributes both technical and business know-how. As a result, his/her credibility with senior management is sustained.
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Widens project sponsorship so that all constituencies are included. Creates a cooperative environment of team involvement in providing IT solutions.
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Senior Management has bought the CIO's vision and strategies and knows he/she is results-oriented.
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Successful CIOs are constantly searching for areas in their businesses that can be improved (which are not necessarily those perceived as needing improvement) with technology.
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The CIO gets along with customers and is an excellent business communicator.
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Able to balance technology change with the need to keep the business running.
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Able to set realistic goals with both senior management and with users (manage both upwards and downwards), control expenses and promote success.
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Minimizes risk in technology and business investment. Limits the technology mix so that systems delivery can be achieved with ultra-short development cycles.
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Understands the real substance of popular terms like 'reengineering.'
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Has superb project management skills and emphasizes deliverables to the business.
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Has good business instincts and understands that 'payback' is the reason IT solutions should be implemented.
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Are strategic planners, change agents, engineers of new ideas and value adders to the bottom line.
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Senior Management is comfortable with the IT function and management because IT leadership has made an effort to establish a working rapport.
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The CIO's subordinates understand and share his/her vision.
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The CIO has involved senior management in building the new technology model.
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The CIO is able to handle the fast pace of change in both technology and business.
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The CIO emphasizes 'customer service' and has a genuine desire for the success of the company.
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The CIO keeps a technology support strategy updated ensuring IT's focus continues to match company objectives and commercial priorities.
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He/she is more innovative and imaginative in envisioning ways to leverage the cornucopia of available technology.
Why CIOs Fail
The survey also elicited 22 reasons why CIOs fail.
Again, the issue of participation in the formulation of business strategy
is central. Also frequently cited
was the CIO's lack of a total business approach when providing technology
solutions.
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CIO is not a full participant in formulation of business strategy. Failure to lead senior management team in making sound decisions regarding how technology and strategy are related and interact.
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Lack of a total business approach which focuses on the increasing demand from line managers for productivity and customer linkage enhancements. The CIO doesn't understand the 'profit dynamics' of his/her business, i.e. what's needed to support the profitability of the firm.
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As contrasted with other functional areas (Finance, Sales, Marketing, etc.), there is not yet a generally accepted set of measurement criteria which defines the successful CIO. Outside of dramatic failure (projects, data center, personality) many CIOs and CEOs never reach an understanding as to what is true success.
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There is a lack of senior management consensus as to where IT fits and what's expected of the function. IT lacks stature in the organization and is not viewed as a leader.
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Because IT is a service function, its success is driven in a broader sense by the success of the company/product/service strategy exploiting IT. If leadership in those areas fails, so will IT.
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Failure to formulate and articulate a vision for technology within the enterprise.
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Inability to build and maintain credibility in both the technical arena and broader area of general business strategy and decision-making.
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Failure to balance technology change with the need to keep the business functioning reliably.
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Lack of customer service sensitivity.
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An increasing computer-literate workforce has placed new and sometimes unrealistic) demands in terms of data access, availability, response time and project duration.
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The CIO lacks global business perspective.
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Lack of appreciation that technology is an enabler to satisfy business objectives and that IT is a service organization.
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Business climate is not open to change.
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The CIO is a poor staff builder and motivator.
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Most IT executives do not focus on the mission, activities and end products that add value to the company. From systems development to deployment, adding value is key.
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There is a lack of 'comfort' between IT executives and senior corporate executives. The CIO hasn't communicated his/her strategies to senior management in such a way that the strategies are clearly understood and supported.
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The CIO has failed to educate upper level management and to lead them in making sound decisions regarding how technology and strategy are related and interact.
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Failure to accept dramatic technological change as well as the major structural changes that some companies -- even industries -- are undergoing.
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Fighting against organizational culture. Mismatches of style.
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Failure to select the right business partners -- hardware and software vendors.
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Failure to network inside and outside of the organization and industry so as to build bridges to pick up early on changing priorities and opportunities.
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The backlog of 'practical' projects has consumed so many resources that little has been invested in infrastructure.