Today’s CIO faces a dilemma. He knows technology, and he thinks he knows the business that his company is in. However, he’s confronted with articles and seminars that discuss the CIO role, which emphasize the fact that he should understand and participate in business. All these mean well, but these emphasize so much times on other aspects that the CIO’s knowledge of technology is pushed far into the background.
In fact, some of the articles also state that the CIO should not be a technology person but one from business. These even suggest that the CIO can always have technical personnel to help him achieve his objectives. So our CIO ends up tearing his hair as he tries to understand his place in the corporate world—unsure of his relevance.
Now let us debate this point a little. Let us assume that a bright manager who manages some business aspect is assigned to lead the team as a CIO. He definitely understands the business scenario and the company’s needs that are to be addressed. However, he may not be sure about which of these aspects could be addressed through technology. So he calls his technology manager and asks for ideas; so far, so good. Now the techie explains new technologies, but is not able to convince our CIO. Here, the question is about whether you run your business the way you conceive. Do you just put in technology for automation? That may not be the optimal usage of technology for business.
So it’s important to know not just business. It’s equally important to know and understand technology; how it could be applied to business. In my opinion, the CIO should also scan the technology environment—pick out technologies that could be relevant to his business.
Then he has to evaluate these technologies in detail. To do so, he should not only read articles and other hand-outs, but also meet and discuss various aspects with the technology vendors. Now, to be in a position to evaluate technologies, you have to learn them first. This involves constant research about organizations that have applied various technologies, attending events that speak about technology applications (and success stories) as well as speaking to consultants (or user organizations) to learn of the new developments. Well, all these involve time. Therefore, knowledge of technology cannot be pushed aside.
In this connection, let me recount my stint in a management consulting firm. My counterparts working on accounts and inventory applications used to finalize all processes and forms. These would then be handed over to IT in order to automate the process. For them, IT enablement meant putting in a few square boxes on the form to help enter the account numbers or inventory codes. Many a time, during discussion of these processes, I used to point out many processes that could have been made simpler—just by just applying our minds to think of processes from an automation context. Many of these specifications changed as a result. This is why I feel that knowledge of just one side of the picture is not enough to do justice.
So, it doesn’t really matter whether the CIO is a business person with a fair comprehension of technology or a technology person with a good idea of business. It is important to know technology before we think of applying it.
CIOs need not feel shy talking about technology even though it is fashionable to talk of business. If he professes to know technology, it may not necessarily put him into a slot where he may be looked down upon. The issues rise when he talks only in technical terms. If he closes his eyes and ears to other matters concerning business, then he is definitely asking for trouble. I for one, feel that those types of professionals are slowly becoming scarce.
Today’s CIO lives in a world which involves interactions with many stakeholders; he cannot operate alone. Since he services various internal and external customers, his reach and influence go much beyond his function. The management also has its own expectation of him, and he is expected to devise technology solutions to various business issues. Therefore, the CIO has a task set up for him. He has to talk to people, understand their issues, convey his solutions, and implement them. Therefore, good communication has to be his forte. This is a trait that has to be developed in order to be a successful CIO.
For the CIO to become a good communicator, he has to build on the following aspects:
Be objective: Any communication is with a purpose, whether it be for informing a person, raising a query, proposing a solution, or for discussion. It’s essential that you clearly state the subject matter so that the person you communicate with is clear about the desired outcome.
Clarity: It is important that the communication is clear and clearly states the issues without ambiguity. It is necessary to be frank and state even unpleasant matters (where needed).
Listening: This is a very important trait and perhaps one of the hallmarks of a good communicator. Listening involves absorbing what somebody says without filtering it with your opinions — first receive the input as it is delivered, and then prepare yourself for its analysis and interpretation. You cannot work out an appropriate solution unless if you listen to people and their requirements.
Language: Many CIOs suffer from a not-so-good command over the language. This mars their communication. Many a time, improper usage of words generates misunderstanding or leads to wrong decisions. Therefore, it’s imperative that he learns the use of language (in terms of grammar and usage), and conveys messages rightly even if it’s in simple words.
Self expression: It is important that the CIO expresses his views without fear (as long as he is objective). Self doubts and lack of confidence may often prevent him from clearly and objectively expressing himself.
Confidence: It is said “nobody can make you feel inferior, without your permission”. We are often inhibited by the feeling that we may sound silly–that somebody may find fault. So we choose to stay quiet or maintain a low profile. By doing so, we convey the feeling of being unsure, and the body language works to our detriment. If we hold our heads high and speak out with courage, people sit up and listen – it is amazing how even a little display of confidence changes the audience.
Preparation: If we prepare well before a communication, it shows in terms of the confidence with which we face the audience. It’s hard work, but it pays. Imagine making a presentation without knowing much about the audience, or not being well prepared to answer questions. These dent your image as well as your ability to convince the audience.
Well, I may have missed out a few more aspects of good communication. It’s best to treat this as an illustrative list and consider practicing them as you deem appropriate.
Every CIO functions in various capacities at an organization. Due to this multi-faceted job profile, he requires various traits that put him in charge of the situation. As a good manager, he can function very well by being dedicated and efficient. Just this capability will not take him far, since he continues to be considered a good techie who can help people with usual problems. In my opinion, the CIO has enough potential to rise up to high levels and be a person who matters.
For the CIO to really become a leader and play a significant role in the organization, he has to take a leap—put his neck on the block and play for higher stakes. Therefore, playing a leadership role requires that he imbibes the following qualities.
Have the vision: The CIO needs a clear sense of direction—his vision should extend to matters farther than his departmental issues. He should look at the environment that the organization operates in, the company’s strengths, and faced challenges etc. Thereby, he has to formulate plans that will help the company to become a winner.
Communicate right: A CIO’s vision and plans may need articulation for these to be understood. This could be through presentations, strategy notes, discussions or any other form of communication. Such communication needs to be focused and also expressed in an easily understood form. As often said, the management is not interested in technology, but in the business solution that it brings forth.
Be proactive: It’s essential that you step forward and look for solutions to various issues in the organization. This is more advisable than waiting for someone to approach you for a solution. The CIO has to reach out to various stake holders and offer help to their problems.
Become the ideal team leader: You have to manage the team which delivers. So explain the purpose of various tasks to them and give the required guidance. Encourage and motivate them to deliver more than what they think they can.
Achieve execution excellence: Plans have very little relevance if they are not executed well. The CIO has to ensure delivery in order to stay credible and bring in excellence into the work that gets done. Only then can a CIO enjoy the management’s confidence and get their continuous support.
Cultivate relationships: One of your contributions as a CIO could be the ability to create and maintain good relationship with all stakeholders. Not only would you get their ideas and support, but also create an environment which is conducive for your team to operate. Thus you can let your team concentrate on work while taking care of the surrounding environment.
The above are some qualities, which in my opinion, help a CIO play the role of the leader and get to be a person of significance in the organization. There could be other traits that a leader could posses and there may be many other views. Therefore, the views expressed in this article may be seen as a set of suggestions.
Can the CIO make contributions to HR? Certainly yes, will be my answer to this query.
Now, if we go by the traditional view, the CIO is a technology wizard who peers at the computer screen and makes various machines work. He is considered a back-end guy, someone who has very little to do directly with the people. But haven’t things changed over the last few years?
Today, IT touches us our everyday lives, and we are very largely dependent on it. Unless the CIO has an idea of the accruable benefits and how IT influences the way we do our work, he would certainly not be of any help. Therefore, the CIO has now come out of his hiding and to do everything that is needed—alongside the people around him.
Let me cite a few examples from my experience. During my stint with a chemical company (way back in 1992), I fought against the prevailing opinion and persuaded the management to sanction the budget required to roll out state-of-the art IT infrastructure throughout the company. With sheer enthusiasm, I went about putting in Windows 3.1, introducing e-mail throughout the company, connecting all offices through the 9.6 kbps STD link, and organizing large scale training to staff on the new platforms. In doing so, I made visits to all locations to ensure functioning of the programme. Within a short period of three months, people were playing around and connecting with people from other offices whom they might have not spoken with for years.
Unwittingly, I had played the role of binding people and getting them interested in work. With a modern IT infrastructure in place, the factory (which was in a remote location) started to attract Graduate Engineering Trainees (GETs). People gave me the informal title of ‘the real HR head’, and this was a pleasant surprise.
Yet another example I can use comes from my tenure with an automobile company. I worked hard to get the systems right in this organization – not one of the pleasantest of things. I met with resistance, but somehow managed to put in improved systems across various areas, which covered work flow, ERP systems and process automation through bar codes. To make systems more effective, I worked with users to bring about process improvements. The results were amazing; apart from financial benefits, there was a transformation in the work load on people and reduction in stress levels. Cessation of overtime and late sitting came as a boon to people. Realizing the popularity of the IT department with the masses, the HR department started to use us for rolling out some of their initiatives in the organization—with the HR head frankly admitting that IT had more credibility.
I am sure that many of our friends would have similar experiences to narrate. In my opinion, today’s CIO has come of age. While doing so, he brings about changes that bring in positive changes to the environment. These above examples just emphasize the fact that a CIO is more human than some may think, and can really be of more value to the organization.
Many organizations have already gone through the usual grind of generating several periodic and ad-hoc reports. Managers take action on some of them, whereas many such reports get printed as a matter of routine—with very little use made of them.
On the other hand, routine reports have a limited use. These are used by managers for operational review and control, but do not carry much value for the senior management. Again, the so called MIS is a set of predefined formats generated for management review of operations and financial parameters. Information reports such as sales versus target, expenses versus budgets, and sales by category/geography/customer type are some such examples.
Over the last couple of years, we have been hearing a lot about analytics and business intelligence as well as data mining. In fact, various predictions by research firms indicate increasing spends on these applications. With heightened competition in the markets, top management (across the world) is looking for focused information on markets, competitors and expenses. They constantly yearn for analysis that will help them arrest decline of their market share, spot opportunities, correct inefficiencies, and optimize expenses. When so much is happening at the Board level, can the CIO be far away?
Using information, the CIO can play a significant role when it comes to enhancing the organization’s ability to analyze its performance using a proper diagnosis of problems and available opportunities. For instance, work on sales force automation was initiated in one of the organizations (that I earlier worked with), and the pilot proved successful. Encouraged by its success, the organization’s sales division decided to roll out this application at all centers. However, I had my apprehensions since we had not worked out adequate justification for all the requisite spends. Funds would be incurred on hundreds of handsets, connectivity, backend infrastructure, and on the services. So I sat with the sales team to develop analytics for performance of salesmen, outlet productivity, area wise/ outlet class wise sales patterns, and other multi dimensional correlations. As a result of this process, the application’s purpose got clearer. We had greater buy-in from field staff, managers and the management.
In another case, analysis of the inspection data revealed that many items were not rejected even once during the past one year—leading to a suggestion that that inspection entry in such cases could be skipped. This saved several manhours. In-depth analysis of the warranty returns brought forth issues that were hidden from view.
Opportunities are many for the enterprising. So in my opinion, a CIO can take the lead and be more relevant to business.
The CIO is a champion when it comes to procuring and deploying new technology elements in an organization. However, IT as a function does much more than making the tasks run faster; much of the advantage comes from generating information for decision-making, as well as in helping the organization become more efficient through better processes.
Now, it is at this point that the CIO becomes a bit shy at times. He wonders about how can he think of (and suggest) better processes in, say Production, Sales, Maintenance or Finance. Users in these areas are domain experts, and know the processes inside out. It will be odd to go and discuss improvements with them. He feels that a CIO is not equipped to deal with this task, and he would be better off dealing with the task he knows well. Some may find that this argument makes sense. However, isn’t the CIO missing a chance of playing a greater role in the organization?
In my opinion, a CIO has the rare distinction of being part of designing processes that cover various functions. Over a period of time, he develops knowledge of the business processes and inter-linkages between various systems. When discussing the process specifications, he comes across differing views of people. This opportunity gives him an insight of not just the possible solutions, but also about the underlying cultural issues. When he weaves these systems together to generate MIS for the top management, he has a chance to view the entire organization from a management perspective.
I have seen many a CIO playing significant roles in what is called ‘business process improvement’. I have also been a part of such exercises, especially so with ERP implementation projects. All that I had to do was to get engaged in a discussion with the users, raise innocent queries, or suggest changes (when appropriate). Things worked even better when I could put words into their mouth as they spoke about these changes. I applauded them and gave them full credit.
While it sounds simple, I had to work hard and make several attempts to be successful. I had to go around and study these processes in-depth before I could enter into such discussions. But what I learnt was that not being in operations was an advantage; I could look at the processes from an entirely different perspective. For instance, when I was with an automobile company, I could initiate discussions on inventory control measures which resulted in considerable inventory savings. It was possible to seed thoughts of declaring buffer stocks and transparency, thereby optimizing shop floor stocks. I could push towards synchronization in planning processes across sales, purchase and production functions which lead to arresting several redundancies. These opportunities came in purely through interactions with some of the senior managers and being persistent with reforms, despite being under fire for disturbing the prevailing serene environment.
More often than not, we find that a CIO initiates the idea of getting ERP into an organization for managing enterprise data. So the CIO has to go through the initial barrage of questions relating to the need of ERP; later on he has to prepare for the financial justification. Once he’s through with all these hurdles, the CIO then makes a plan for ERP procurement, and its subsequent implementation.
At this point, the CIO faces a dichotomy. The CEO sends the message that since the CIO got what he advocated for, he should manage the show. This means that the CIO should lead the project and make it successful. Now that the trap is set for him, the CIO picks up the bait.
Now comes the critical question—is the ERP just an extension of the other software packages that the CIO has been running? Since the ERP is another software, is the CIO is obligated to run the show? Many CIOs are possessive, and don’t want to hand over the mantle to someone else. He takes up the challenge, and in many a case, struggles to keep his head above water. Why does this happen?
The rest of the organization perceives of ERP as just another IT project. As a result, they pass on all privileges and responsibilities to the CIO. Now, the poor CIO has to live up to the generated expectations. Therefore, he proceeds ahead with the sole purpose of getting the ERP to run and generate promised reports. The organization does not get much out of its investment, and the CEO is obviously not very happy.
It’s not too difficult to find the reasons in such situations. An ERP project is more about helping businesses to run efficiently, rather than being a mere software implementation. Therefore, it calls for a greater participation from the business. Since an ERP implementation’s scope extends to improving business processes and generating better quality of information, various business heads (as process owners) have to come forward and take ownership for their respective areas. If there is so much play at the business level, is it not prudent to call in someone from business to head the project?
On this front, I will share my experiences with you. After having persuaded the management to introduce ERP in the organization (in 1998), I suddenly found myself in this familiar position. The CEO gave me the go ahead to start the project. I took the courage to tell him that this project’s head should be from business, along with the suggestion that he speaks to the ERP vendor as well as the implementation partner for advice. So the CEO searched for people within the organization based on this suggested profile, but not finding a suitable person, he reverted back to me and suggested that I fill the position.
I had then set two conditions for accepting this offer–first, that he should announce ERP as a business project, and not an IT project. Next was the clarification that I was chosen since I was the most suitable for that position—not because of my IT connection. These moves worked wonders, as the perception of the organization to this ERP project changed, and thereafter we received good support from everyone.
The outsourcing story is gaining ground in India, and is now widely practiced. Many organizations now look at external sources to manage some of these services, and all have their own logic about what they have outsourced. There has perhaps been no study to assess whether outsourcing has really been able to deliver the results in each case, and whether the model adopted by them was the best one possible.
Some organizations believe in outsourcing routine repetitive activities like facilities management, data center management, and software development, but keep the high level tasks in-house. Others believe in strategic outsourcing, and involve high profile consultants as advisors to give directions while keeping the menial functions within their organization. So the outsourcing story is not uniform, and depends on the organization’s stated purposes.
The question is not whether to outsource or not, but of which IT functions to outsource. It is important to choose the right outsourcing model that is most suitable for the organization. Models of outsourcing vary; it could be a complete outsourcing of IT, with only the CIO being retained as a co-coordinator. We have seen such examples in MNC organizations; examples in the telecom sector and among big IT players do suggest such a route to the corporate. The other model is one of partial outsourcing where one or more IT functions are completely outsourced. Some of the best exampled include passing on of routine tasks like facilities management, help desk, data center management, software development, application support, or tasks like 24/7 security monitoring. This eases the CIO’s burden, and he can then concentrate on delivering value to business.
In some cases, outsourcing is initiated by the management when they feel that services delivered by the IT Department are not satisfactory—either due to low performance, or due to attrition. In the other cases that I have seen, CIOs take the lead and put up a proposal to the management with sufficient explanation citing better delivery and cost savings, besides other factors like making use of external skills and service level agreements (SLA). As CIOs, we have to seize the initiative.
Perhaps, outsourcing has become so common and easy to practice that I often wonder whether this topic is now too relevant to debate. I would love to hear from people who hold contrary views.
Today you are the CIO, but what next? Truth be told, this question may not have clear answers.
Views vary, and so do the aspiration levels of CIOs. For a person starting at the lower level, getting to a C-level position could be the ultimate destination. Some may hold ambitions of getting to the Board level, while some may be taken in by the rants of ‘Can the CIO become a CEO?’ discussed as a topic in various seminars.
I have met quite a few of my fellow CIOs who rose up from being CIOs to become CEOs (of their outfits spun off as separate companies). Out of these, some managed it very well; others did not. A couple of others took the courage of taking over charge of a software (or service) company as CEOs. Many CIOs are members of the management or executive committees, and play a part in organizational decision making. Maybe, it’s that only a few CIOs get to be Board members, and a very few get to the CEO level of large organizations. However, becoming the CEO stays an unfulfilled dream for many, perhaps more because of the widespread debate generated at various forums.
Well, a few our CIO friends may beg to differ about this pipe dream. They say that they would like to grow in stature, and be more meaningful to the organization, rather than chase such a dream. For them, becoming more powerful is about getting to a position of influence where they can alter the organizational course. They could become trusted advisors to the CEO; help the company grow and get to be more profitable through IT interventions and in bringing about business process improvements. They could one day become a CEO too, but that thought is not overbearing on them. Others feel that the goal of becoming a CEO limits their thinking, and takes them away from playing a larger role at the industry level. Some maybe considering research, or becoming a consultant of repute, or of coaching and teaching. These too are positions of significance in society.
So can we say that attaining one such stated positions mean the end of the road for a CIO? Or is there more that he can aim for? Is there too much hype on this subject (thereby confusing the CIOs), or do people initiate this talk just for discussion purposes. It may perhaps be important to really understand the CIO’s need to connect with what he wants to do in life, rather than trying to push him into a race that he is not too keen to enter?
The phrase “IT should talk the language of business”, often makes a lot of CIOs self conscious. At the same time, this prompts the CIO to make this transition. To be able to talk the right language, the CIO has first to learn the business of the company that he serves, understand the market, competitors, challenges that the business faces, and the hurdles to growth. Once he has this background, he can confidently engage in a conversation with the business heads to understand their pain points and aspirations for growth.
For instance, to understand business, the CIO can volunteer to make market visits to understand the market, dealers and customers. He can go around the Plant to understand the manufacturing process, visit procurement centers (if any), or read the company annual reports for the last few years to understand the business philosophy as well as growth patterns. It may be important to meet all the functional heads to understand their perspectives on business and their expectations from IT. Once the CIO understands these business imperatives and concerns, he will be in a position to strike a much more meaningful conversation.
Now what stops the CIO from doing so? Is it the absence of an MBA degree, or that he has never been taught these in his technical course in college? Or is it that his talking of business may shift his focus from the responsibility of managing the technical environment?
These are all matters that we should seriously ponder upon. Now, some of these issues may be genuine in their own way. Nothing stops the CIO from pursuing a MBA course and understanding various aspects of business and management. But that need not be the only route; he can also read articles, have discussions with learned professionals, or attend seminars. He can shrug off the past and learn things afresh, even if he has not had a business orientation earlier. However, if he chooses to stay within his technical domain and excel, then it’s his own choice.
I have met a large number of CIOs in the industry and talked about this subject. While quite a few of them are eager and make attempts, many others are shy or short on confidence. If they really want to take that jump, they could seek assistance from their seniors in the profession.