Corporations need CIOs to weigh in on company technique, but most CIOs discover that they have to carve out their very own strategic roles. What’s one of the best ways to do that?
At first blush, it might sound that there isn’t a “greatest method,” as a result of the concept of a CIO sitting on the company strategic roundtable is comparatively new.
An preliminary driver for CIO strategic engagement was ushered in with the launch of digitalization initiatives. Digitalization made CEOs and boards notice that know-how can be a driver of enterprise success. This prompted a deluge of invites to CIOs to attend strategic conferences, regardless that nobody (together with CIOs!) knew how and what CIOs would contribute. In the end, it was left to CIOs to outline their very own strategic enterprise roles.
Rule #1: CIOs contribute to company technique by defining their very own strategic roles.
CEOs know they need the CIO on the strategic roundtable because it’s now apparent to everybody that know-how allows enterprise success, however that tends to be all a CEO is aware of.
That’s why CEOs and boards count on CIOs to ascertain their very own strategic identities and price. To do that, CIOs should first learn the “tea leaves” of their corporations.
Is it greatest to be a know-how thought chief? I do know of no less than one case the place that was all that was anticipated of the CIO in strategic planning. The CEO and the board wished to know that they’d an in-house “knowledge architect” who knew what each system was doing, the place each piece of information was, and the way greatest to align all of it so everybody within the firm labored with constant, high-quality info.
In different instances, corporations desire a CIO who’s so business-savvy that the CIO is aware of all the shopper contact factors and enterprise ache factors, and like an excellent doctor can apply a magical know-how balm to those processes, taking the ache away. I’ve seen CIOs do that, and a few have even ascended to CEO positions.
Nonetheless different CIOs see themselves as know-how trash collectors. They replace know-how over a collection of years and eliminate the outmoded “boat anchors” that burden company steadiness sheets.
CIOs who’re defining their strategic identities and the worth they bring about may select a number of of those approaches, however one frequent path that all of them journey is position definition, for there isn’t a one else within the group who can do it for them.
Rule #2: Contributions develop while you keep on with enterprise.
There was the CIO who established himself as a grasp knowledge architect, and this happy the board and the CEO. However he was an outlier. It is because most corporations need their CIOs to rework the enterprise for the higher. To do that, CIOs are constructing their enterprise chops by learning finance, operations, advertising and marketing and gross sales, as a result of they perceive that they have to rise up to hurry on how their corporations function and thrive above and past know-how.
These CIOS analyze income streams, revenue statements, monetary ratios, borrowing prices, buyer conduct, and stakeholder considerations. They’re addressing these subjects head-on in strategic conferences. This helps them acquire enterprise respect with their peers in the C-suite and with stakeholders, board members and the CEO.
There may be additionally one “particular perception” that CIOs possess and that different executives don’t: CIOs are integrally accustomed to the enterprise’s portfolio of methods. Their work in IT has acquainted them with the place they’ve systemic malfunctions and breakdowns. In a way, the CIO is like an enterprise surgeon. He sees the breakdowns in these methods and may probably hint these breakdowns to issues within the enterprise. If he can clear up these issues with know-how, he establishes his strategic value.
Rule #3: C-suite teamwork pays off.
CIOs are at their strategic greatest after they group with different C-level executives in a digital transformation undertaking that intently aligns know-how with the enterprise.
An instance can be a brand new CRM system that offers everybody a 360-degree view of the shopper expertise with the corporate, whether or not they work in customer support, gross sales, advertising and marketing, product growth, order success, or finance. It isn’t sufficient to make sure that methods and knowledge throughout all capabilities are operational and constant; you will need to even have the enthusiastic backing and participation of the executives who use these methods.
By teaming with their govt friends on digital tasks, CIOs erase the previous sample of customers coming to IT, asking for methods, after which returning to their common enterprise routines whereas IT works within the again room on a system that the customers won’t find yourself liking.
Communication channels develop and belief builds when C-level executives work collectively. A basis of mutual work and belief is constructed that paves the way in which for extra productive technique making.
Rule #4: Go for the house run; don’t simply get on base.
CIOs will not be essentially threat averse, however there are some who prefer to play their positions on the conservative aspect. If this administration fashion matches your character, it is best to most likely keep it up. Nonetheless, there may be empirical proof that CIOs who’re prepared to step outdoors of their conventional consolation zones — say to suggest a brand new enterprise — assume excessive threat but in addition money in on excessive strategic rewards.
An instance is the CIO at a well known monetary companies firm who developed a product in IT that was so progressive that he proposed a separate for-profit line of enterprise for it. The board and the CEO authorized, and the CIO turned the CEO of a brand new subsidiary. That is a rare instance of the place high-risk-high reward strategic enterprise management can go, but when the shoe matches, go for it.
