What do CEOs want from their CIOs, and how can CIOs build on the power gains they've built up, even as everything around them is changing?
CIO magazine tackled just that subject during a panel session at the CIO Leadership Conference, recently held in Boston. Michael Friedenberg, CEO of CXO Media (publisher of CIO), discussed the importance of CIOs as strategic business leaders and the changing role of the CIO with Rajinder (Raj) Gupta, executive director and adjunct professor Northwestern University's Kellogg School of Management; Chris Patrick, partner at executive search firm Egon Zehnder International; Robert P. Badavas, president and CEO, of staffing firm TAC Worldwide; and Steve Merry, CIO of the Sara Lee Corp.
They found five main keys to being a top-notch CIO today-and tomorrow.
"CEOs want people who can connect the technology to their strategic intent." Chris Patrick, partner at executive search firm Egon Zehnder International
One: Be a Strategic Business Leader
Much of the CIO traditional role is now merely table stakes. Technology itself will not set you apart; you need far more business expertise than CIOs of yesteryear did.
CIO, Michael Friedenberg: What has changed about what CEOs expect from the CIO?
Raj Gupta: I have talked to 15 to 20 CEOs directly, and they are looking for someone who can be a trusted business partner. Of course the CIO has to keep the trains running, but CEOs want the CIO to be a senior leader such that, when you are together with the rest of the executive team, it's hard to tell you are the CIO.
Chris Patrick: CEOs want people who can connect the technology to their strategic intent. I have clients who are investing billions of dollars in IT. They want a person who can show the team the ROI from this investment.
Bob Badavas: At the end of the day, what CIOs are paid to do is take a full seat at the strategic planning table and be an integral part of the strategic decision making-which means they need to know what business they're in. Get out of the office and find out why people buy your product or service. IT is a strategic weapon. To find out how to use it, the CIO must engage with clients and the front-line distribution or sales organization.
Steve Merry: Technology is a given; we need to get value from that by removing the clutter and making it easy to use. Then we can sit with our business partners and take the business forward, focusing on things that make a difference-growth, innovation and acquisitions.
Two: Speak the Language of the Business
Everyone's talking about the "strategic CIO," but is everyone ready? Maybe not. That's why you need to sharpen your communication skills-and work for a CEO who supports today's version of the CIO role.
CIO: I don't know of any CIO or CEO who would disagree with the need for CIOs to drive business value. But not everyone is succeeding in doing that. Do CEOs really mean what they say about their CIOs?
Patrick: CEOs all read the same Harvard Business Review articles. They all want "strategic CIOs." But often they are not sure what to do with them and how to best leverage the talent and expertise these individuals can bring.
Gupta: While everyone wants this strategic role, both sides are not quite sure if the CIO is ready. The test I pose to CIOs is, Can they talk to the management committee and outside stakeholders in a language that doesn't label them as a CIO? That's the test of credibility.
The CEO isn't quite ready as well. They are so engaged in keeping the business running that they have trouble finding time to give the CIO the opportunity to be a strategic business driver. They must have commitment and belief and not just talk the talk.
CIO: Bob, as our representative CEO, how do you respond to that?
Badavas: CEOs have the company they deserve. If I say get out of the office and don't give you a travel budget, who are we kidding? I can't say IT is important if I'm cutting initiatives that could enhance the value of our infrastructure. I can't pontificate on how you should transform yourself if I'm not willing to make a personal investment. My responsibility to all my direct reports is to have an environment that allows them to blossom to their full extent, and to allow them to make mistakes. I owe them the opportunity to grow and to be part of my succession plan. I have had conversations with them that start "If you want to be a CEO someday..."
"Get out of the office and find out why people buy your product or service. IT is a strategic weapon." Robert (Bob) P. Badavas, president and CEO, of staffing firm TAC Worldwide
Three: Get Involved in the Business
As the CIO, you get a bird's-eye view of the business. Make sure you show that knowledge, no matter who you're reporting to (and give your staff the chance to gain that knowledge as well). And if you can't shine where you are, go somewhere that you can.
Patrick: If you can demonstrate that you're different and bring strong business skills, you will be in demand.
Merry: Who has the broadest perspective across the business? The CIO. We've seen everything done several times over and can give that perspective back to the executive team. But we must have the [courage] to challenge the people who see themselves as experts in their function area. Speak up or you don't have the right to be in the room.
CIO: CEOs say they want the CIO to make this broad, strategic contribution as a business partner, yet they continue to have the CIO report to the CFO.
Badavas: The CIO has to report to a C-level person who believes that people should not just be focused on their functional silo. It's fine if the CIO reports to a CFO who is tracking to be a CEO. But if it's a functional-oriented CFO, then that flows down hill, meaning the CIO will probably be expected to focus on the IT function only. How can the CIO communicate the value of IT if the CFO has IT sitting in a corner just like the maintenance function of the company?
"Technology is a given; we need to get value from that by removing the clutter and making it easy to use." Steve Merry, CIO of the Sara Lee Corp.
Next page:Be a skilled marketer of IT
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