By Taposh Ghosh
Technology has been revolutionizing the way companies do business for more than 20 years now. With the progression of time and change in technological dependency, there was an inevitable need for technological leadership in businesses. This would become apparent as traditional CEOs and COOs who were responsible for leading technology-related decisions in the business, started to become incapable of harboring the capacities the role demanded. This brought about the need for a new ‘C’ in the executive suite, the CIO, which itself has come a long way from playing roles as chief of information to integration to innovation.
MODIFYING THE MODEL
Traditionally CIOs were tasked with delivering technology solutions to the business. But as time progresses, there happens to be a strained relationship between this technology which is spanning over every single aspect of a modern company, and the business itself. Moreover, the CIO needs to be the connecting bridge.
Businesses are transforming fast, and technology is no longer being perceived as a cost of running a business. Instead, it is acting as an enabler, a differentiator, and a tool to introduce innovation in the organization. This creates additional roles for the CIO that can be challenging to deliver at times. Some businesses are also breaking down and defining the multiple roles into that of a CIO and CTO, with the former leading the application of technology in the business and the latter expertizing in delivering the technology.
ADAPTING TO AUTOMATION
Businesses that realize the growing importance of technology in operations tend to share a few overlapping characteristics. The first is that technology is generally be embedded deeply into these businesses rather than simply being viewed as a standalone function.
The second likely trait is that the company will have outsourced much of its technology infrastructure and require someone at the top to manage the portfolio of services, whether they are delivered by a third party or in-house.
The third attribute is that the organization may well be going through a period of business transformation, process standardization, and change for which technology will be a catalyst.
In all of the cases, the key is to avoid traditional silos with technology and operations being considered as separate departments, instead led by a cross-functional team with the CIO creating a common vision across the independent silos in order deliver process focused goals. At times it can also be seen that such models are being led by CIOs with few or no backgrounds of technology, instead are MBA graduates skilled at managing workforces and identifying which technologies will benefit the business most.
CRAFTING THE CIO
Randy Sloan, CIO of Southwest Airlines, said that the role of CIOs in businesses needs to shift from cost centers to value creators. With growing influence and collaboration, the overall goal for the CIO is now much broader and proactive than “information” or “integration”. But to truly deliver business value there are a number of components that these individuals must consider to achieve those business value creation goals:
LEAD CHANGE
Innovative CIOs closely partner with all aspects of the business to maximize the value of technology investments, generate revenue, drive new opportunity, and address challenges and risks. The CIO needs to lead the charge, teaching stakeholders about new technologies and strategizing across functional boundaries about how the business may or may not use technology to improve processes and attain financial benefits.The role of the CIO needs to go beyond their traditional boundaries and lead the team and the individuals who make it happen regardless of which department they belong to.
INTEGRATE ORGANIZATIONAL GOALS
As businesses shift from inefficient hierarchies to self-organizing communities to deliver technologies, the organizational visions are often lost in translation as teams start working independently. In such cases, it is the CIO’s responsibility to ensure that the business and technology are aligned with a multi-year plan that prioritizes the most important investments. The use of integrated cross-functional teams to deliver defined tasks with shared goals become more relevant than ever in such shifting landscapes.
EMPOWER THE TECHNOLOGY FUNCTION
As the lines between client, supplier, and customer are blurred, people have more access to information than ever before. To survive in such a landscape, CIOs need to be prepared for disruptive technologies that they can foresee, and have a plan in place to deal with the unknown while providing an environment that is able to integrate newer technologies. Ensuring predictability of delivery, stability, reliability and security – these challenges are the table stakes of the role, which the CIOs need to master for the benefit of the organization.
CHANGING BUSINESS INFLUENCE
Thanks to technology, leadership is no longer about power — it is about influence. Being a leader no longer means bossing someone or telling them what to do, but modeling what needs to be done and explaining the purpose. Modern day businesses and the CIOs themselves need to realize this change and express opinions regarding decisions, which they think will benefit the business more, in comparison to ones taken behind the closed doors of a board meeting.
McKinsey states that businesses know from experience that CIOs with a seat at the strategy table have a better understanding of their businesses’ near- and longer-term technology needs. They are also more effective at driving partnerships and shared accountability with the business side. Unfortunately, CIOs don’t play this role of an influential business executive at many organizations.
LOOKING TOWARDS THE FUTURE
The CIO’s transition within an organization from their original role as a provider of technology solutions to that of an innovator is not without challenges. Many of these are growing pains that come as a result of the CIO and technology needing to move beyond their familiar roles as businesses become more focused on increasing revenue and others within the C-suite begin taking on new tasks. While there is no guaranteed way for a CIO to prove themselves as an innovator and value creator, those that can demonstrate that they are business leaders, will have the greatest success demonstrating the ever growing valuable role of the CIO.
