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Viewpoint: Are CIOs Facing A Crisis? Print E-mail
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Thursday, 19 February 2009
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Viewpoint: Are CIOs Facing A Crisis?
Three Strategies to Get CIOs Back on Track

What steps then need to be taken to get CIOs back on track? Langer offers three strategies.


First of all, if CIOs want to be perceived as a profession, they have to start acting as one. That means establishing a peer organization, along the lines of Certified Public Accountants, the American Medical Association, or bar associations, that can set standards, act in a concerted way to advance the profession, and lobby on behalf CIOs with state and federal legislatures.


To illustrate his point, Langer notes that one of the biggest complaints he hears from CIOs is related to the onerous requirements of the Sarbanes-Oxley Act. "Everyone complains about it, but did CIOs lobby against it as a profession in Washington? No," he says.


The second key step is that CIOs have to stop thinking of themselves as just business supporters and realize that their strategic role is more important. Yes, the computers have to keep running and the network needs to be reliable, but to become truly vital the CIO has to be thinking about how technology can be leveraged to drive new revenues, create efficiencies, or perhaps transform the business.


"Learn to delegate—let someone else worry about keeping the lights on—and take the opportunity to be a driver," he says.


The third step, which often causes the most angst, is to make the argument that as the company's CIO you need to report to the CEO. Langer doesn't dispute the fact that many effective and strategically-minded CIOs don't report to their CEOs. Some have been just as successful reporting to the chief financial officer or chief operating officer. However, he contends studies have shown time and time again, that organizations reporting the strongest alignments between business and IT have CIOs that report to the CEO.


But, reporting to the CEO isn't enough on its own. CIOs have to learn how to listen, to truly understand the needs of the business, and be able to communicate their ideas to the CEO. And that may require learning new skills.


Langer realizes he is painting CIOs with a broad stroke and that his viewpoints are controversial and disputed by many in the profession. But, he contends, it is important for someone to occasionally hold up the mirror and ask whether perception—in the form of how CIOs think they are perceived by their businesses and bosses—matches reality.


He compares the CIO community to that of a boxer who, despite the fact that he is continually getting pummeled by the left hook, won't change his boxing style.


"CIOs don't understand that they need to be able to change their style. They can't keep walking into the left hook," he says.


Tell us what you think. Throw a left hook or two of your own our way.




Comments (5)
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1. 02-19-2009 14:59
 
I guess I am fortunate in that I have worked for some CIO's with a very strong "keep the lights on" mentality. The complaints that came from his peers looking for strategic vision from them helped shape my perspective as I moved into a CIO role. 
 
If CIO's are facing a crisis, I think it is self-made. My recent experience indicates that well run companies do want the CIO strategically engaged with the business, not passively sitting in the back of the room.
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2. 02-19-2009 15:28
 
There are some interesting points the author mentions. My experience prior to becoming a CIO is most people who have filled the position prior came from business orientations with no technical background. This can be viewed as good or bad depending on your personal perspective.  
 
They bring the business perspective but lack the baseline of understanding to deal with technology changes and the impacts they have. This gap becomes magnified in legacy based environments and dealing with systems that were never really designed to deliver IT as a service or strategic enabler.  
 
Newer CIO's who have the broader technical acumen as well as the business focus or experience in running a P&L are ones who truly become "strategic or transformational" leaders that understand how to drive business value. In the end the technology becomes an enabler for the business platform. 
 
My two cents...
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Cameron Chehreh
3. 02-20-2009 09:15
 
I both agree and disagree with Art’s position. I think the expectations of the CIO role have in evolved, however the transition from functional technology leader to business partner for the CIO is the real issue. Reporting to the CEO and having a “seat” at the Sr. Leadership table requires the CIO to have creditability and add / drive commercial value. It is job #1 of the CIO to demonstrate the strategic value of the role and function. Keeping the “Lights On” and driving the cost of non-value added IT expense down is only ½ the battle. Driving IT alignment, transparency, and accountability create the opportunity for the CIO and the IT organization to partner strategically Unless the CIO can measure and communicate the value of IT contributions in commercial terms, the his/her role will always be relegated to functional leadership. 
 
My 2 cents
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4. 02-20-2009 12:59
 
Well, this same discussion has been going on since the CIO role was first established in the early 1980's, and we still are talking about the same issues. This is similar to the alignment discussion.  
 
The bottom line is value and many CIO's see their value to the organization as keeping the technology lights on. In some organizations, that's all the business wants. In other organizations, the business wants IT Business Value Leadership where the IT leadership (not just the CIO), understands the business and can bring to the table ideas that can actualy improve the busines. I agree with Dennis, this is often a problem of the CIO's own making, and the good news about that is if you can make it you can change it.  
I ran my IT shop as a profit center for 10 years and learned a lot of valuable business lessons. Not every CIO has the ability to run their shop as a profit center, but they can certainly run it from a business perspective and in doing so will get some amount of respect from the business leadership. This is not the end, but the beginning of being able to provide value throuth IT.
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John Fisher
5. 02-20-2009 13:20
 
If you are operating with the mentality "keep the lights burning" you are operating as an IT Director (the I in your title). If you are working in a stratetic manner you are operating with C in your title. You need to do both, lights on are what you do everyday and is a given, getting involved at a strategic level and helping set corporate direction and bringing guidance and ideas to the strategics of the other C's is where the value comes from.
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