Posted by: Arun Gupta
CIO, CIO CEO relationship, IT policy, IT procurement
A close friend narrated this incident about a CEO who asked the IT organization for three laptops. The first one for use in the office, second during travel, and the third to be used at his residence! It was one of those unchallengeable CEO mandates. My friend thought of this incident as a compliance issue or misuse of power vested with the position. To me, it was interesting that the CEO even thought of such an arrangement without realizing the improbability of how it will aid his work.
Every organization endeavors to define and execute policy with minimal exceptions. These are discussed, debated and agreed upon by the management — signed off too, in a few cases. Everything works well until the first exception request. Such requests typically come from a high performer or a CXO who states constraints within the defined boundaries. Thus begins the dilemma which is normally taken as an acceptable deviation to aid the CXO/high performer, as no one wants to leave any room for doubt when it comes to performance.
The IT organization struggles to maintain normalcy, since the precedent is taken as the new norm. After a while, only two choices remain — change the rulebook or try to save face by diligently documenting each exception. The third alternative is really not an option, since it means that you have to take a tough stance and deny the request. Is there a way out of such a predicament, especially when you consider that powers vested with the CIO are not absolute and can be overridden by the “business requirement”?
Coming back to the story of the “three laptop” CEO, I asked my friend about how the CEO proposed to use this distributed computing to his advantage? Did he not realize that he was misusing his executive powers which may be challenged by the Board of Directors or may set an avoidable example for other CXOs to emulate? I was advised that the CEO was creating value, and by virtue of this, the Board may allow such small indiscretions and look the other way.
In such cases, I believe the relationship and openness existing between the CIO and CEO will play an important role (where healthy discussion and debate exists), as does a possibility of influencing the decision. CIOs should work diligently to build and sustain this relationship to remain relevant and successful within an enterprise.
What about you? Would you acquiesce to such a request?