Welcoming IT to the table: Incorporating the CIO into management

For the human resources professional, the information technology world has likely been a confusing one over the past decade or so, especially when it comes to the role of the Chief Information Officer. There has been confusion over the CIO position and how it relates to the organization’s management.

Until recently, the CIO has been the “techie,” a professional specifically in charge of technology and data. In many cases, the CIO worked his way up through the IT department, emerging as an expert in the technology and data requirements of the business. The CIO was in charge of technology but did not necessarily have input or insight into management functions — this is changing.

Increasingly, the CIO must understand the rules of business and offer management expertise to help make the company’s strategies a reality using technology as a tool.

The CIO must sit at the management table, understand business goals and provide solutions, as well as a practical perspective on the options at hand.

The CIO should work closely with the CEO to establish pragmatic goals for the company. The CIO examines corporate goals from an IT perspective and provides realistic feedback on possibilities and implementation requirements.

Technology is a key part of all business strategies, and ultimately affects customer satisfaction and the bottom line. The CIO acts as a filter, creating structure for the technology, enabling support for the organization’s strategic objectives.

It is important to determine the strategic objective first, and the CIO will translate that into tactics that in turn identify the technology required.

In recruiting a CIO, the human resources professional must look for an individual who can perform one of two roles — that of the Chief Change Officer (CCO) or the Chief Information Technology Officer (CITO).

The CCO is responsible for co-ordinating change programs to support strategic direction. Specific business processes that require a shift include knowledge management, information systems and human resources. The CCO should have a background in the business sector and is not required to be an IT expert.

The CITO communicates to the executive team about IT issues, selects the IT infrastructure and manages IT resources — ensuring low cost and adequate quality. The executive in this role acts as an IT interpreter to management, explaining what is needed to achieve organizational goals and establishing what IT requirements are necessary to achieve those goals. This person is an IT expert who can manage the senior team’s expectations, educate key players and transform organizational goals into reality.

The challenge facing the CIO is to educate the CEO and corporate management on which areas of the company are responsible for IT impact, and to plan a transition to a broader organizational responsibility for IT.

To create the best possible conditions for the CIO to perform in the job, it is important to educate management about the true role of IT within the company and the possibilities technology offers. CEOs must understand how IT fits within the organization and who is responsible for achieving results from the IT investment.

Despite the talk about the increased contribution of information technology to business strategy and the vital role IT plays in a company’s executive arsenal, none of it matters if the CIO does not have a good relationship with the CEO, and can prove good value for the company’s investment in IT.

The CIO is a senior executive and must communicate the department’s concerns to the CEO on a regular basis. Major CIO responsibilities include delivering projects on time and on budget, aligning activities to the strategic plan, setting priorities for the future and giving advice and counsel.

The focal point of the CIO-CEO relationship is good communication. With the appointment of a CIO, the CEO often understands the new range of capabilities the CIO function represents, but does not understand how IT functions affect the cost structure. For example, a CEO may decide to upgrade the organization’s software, but fails to consider the maintenance cost, upgrade costs and possible costs to install a new server. The CIO is responsible for explaining the full implications of any technology-related decision, as well as the underlying IT infrastructure required.

In recruiting or selecting a CIO, the rule is to choose someone who has the skills to operate the IT division like a business, delivering the most value at the least cost. Running an IT department involves implementing technology, negotiating with suppliers, serving end-users, delivering the most value at the least amount of cost and forming a relationship with the CEO. As the CIO candidate assumes the position, the challenge for the human resources department is to educate the CEO about the CIO’s role and limitations, and to generate ongoing discussion in the workplace to ensure the CIO position is integrated effectively into the management mix.

Dawn Willis specializes in outsourcing and IT governance with Compass Management Consulting, a global company specializing in IT and business operations. She can be reached at [email protected].

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