Wanted: Chief Innovation Officer (CIO)

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1 CIOs are under more pressure than ever to deliver more for less. The Cloud, social media, big data and mobility requirements are adding to the pressure CIOs face on a day-to-day basis. Over and above these there are global changes taking place that will have a seismic impact on the nature of work, workers and, in turn, the role of the CIO. Plus there is uncertainty as to whether the role of the CIO is primarily one of management or leadership. And, if it is the latter, what does this entail? This white paper identifies the challenges faced by many CIOs, as well as a vision for the role of CIO that will benefit all stakeholders. Most importantly, it sets out the steps today s CIOs need to take to become tomorrow s digital leaders. The situation today As has always been the case, the CIO is the lynchpin that converts what the IT industry has to offer into valuable services for the users. The CIO, and the IT department over which they preside, ultimately determines the value the IT industry delivers to its customers. Thus the success of the organisation, IT staff and the IT industry as a whole lies in the hands of the CIO. As the world morphs from an industrial to a digital economy, the role of CIO becomes even more critical. Weak CIOs equate to weak societies. There are major factors influencing the world in which the CIO operates. A shift in the global power axis both East and South is forcing developed nations to either raise their game or become an economic backwater. This in turn is driving the need for ruthless efficiency coupled with innovation on-demand. Some organisations are anticipating the povertisation of the developed world and are modifying the manner in which their products and services are taken to market accordingly. Access to affordable energy is no longer a given, so every organisation and individual needs to take a more responsible approach to their consumption habits. There is a global talent shortage across all professional domains. This is having the effect of shifting the power axis from the employer to the employee. Thus, good IT staff will be harder to acquire. Employees in general have already started to flex their muscles. Bring Your Own Device (BYOD) is just the first wave of what would have appeared to be an outrageous user demand only a few years ago. Looking at employees in respect of their actual value, we are seeing the talent hot spots migrating to the emerging economies. Invariably the talent-seeking employers are following. Therefore, developed nations need a collaborative talent/partner management model that reflects a globalised sourcing structure. The education systems of many of the developed nations are based largely on a learning inoculation at the outset of one s life/career. This is increasingly outmoded in a volatile market where learning needs to be in line with demand at any given point in time. The rapid pace of change is such that users are no longer looking for data management but realtime insight. The convergence of technological advances coupled with these global shifts has led to a focus on the following: Mobility The Cloud Collaboration Big data

2 This is a very different world to the one in which the role of CIO evolved. The challenge and implications for the CIO Many people entering the IT industry perceive the role of CIO as a career pinnacle. The importance of the role is without question. However, the role of the CIO in today s world is very much in question. During the industrial era, the role of CIO was very much associated with technology management. And for many CIOs it still is. So am I implying that many of today s CIOs are really IT managers? Well if you have a CxO job title and are not involved in setting business strategy, you are not actually a CxO. To be involved in setting business strategy, you need to be part of the senior management team (aka the board or C-suite). This is an issue for the CIO because, increasingly, the interesting elements of the IT budget are going straight to the business. The IT function appears to be descending into operational obsolescence as its role becomes more about routine technology management than technology-fuelled business innovation. This is soul destroying for the IT staff as well. The technology players are also confused because they are inclined to chase the IT spend and are thus unsure as to whether the CIO is a relevant conduit for every situation. In essence, CIOs behaving as IT managers disrupts the complete IT value chain to nobody s advantage. Technology management is of course not a trivial issue and it is perhaps galling to have it dismissed as some sort of second tier service in the eyes of the users. But, increasingly, technology management is simply the table stakes for taking a place in the C-suite. Imagine that you have convinced the board to give you 30 minutes to demonstrate the role the IT function could play in respect of business innovation. 5 minutes into your presentation the CFO stops you midstream and flags that her laptop is malfunctioning, while at the same time pushing it towards you. In your mind you are the Chief Innovation Officer, but the board members see you as the Chief Laptop Repair Officer. This perception gap is a problem for all concerned. Bottom line is that if the IT factory doesn t work, no one will listen to your technology-fuelled business disruption ideas. So we cannot just walk away from technology management. But users are expecting more. A recent Harvard Business Review article on big data highlighted that users don t want IT projects, they want information services. This shouldn t be a surprise given that the I in CIO stands for information and not IT. Overhyped cloud marketing has not helped as some CxOs see it as a more effective manner in which to acquire IT-related services. The very relevance of the CIO is in question. Clearly, this festering situation needs to be addressed for the sake of society, the users, the technologists and the technology sector. A repositioned CIO Of course there are CIOs who have made the transition and are focused on demand creation through enhanced information services rather than technology supply management. But if we look at the number of CIOs occupying the boardrooms of the FTSE 100 or Fortune 500, we will see that there is much work to be done.

3 So let us take a look at what CIO 2.0 might look like: They manage technology well but it does not consume their full attention They are considered a peer to the other CxOs They are not only aligned with the information needs of the organisation, they are entwined in the destiny of the organisation s success They preside over a highly motivated and service-oriented team They have deep, trusting relationships with the vendor community They have increasingly taken on responsibilities that lie outside of the traditional IT remit For example: Property management Energy management Business transformation Insight management Being the CEO for a business unit In what is increasingly a digital world, they are a strong candidate to be the next CEO CIO 2.0 is an assured business leader who inspires its peers, clients, staff and partners. Take action That s all very well, but how do we get there? Branding is the foundation on which this CIO 2.0 edifice will stand. Very few CIOs, or technologists in general, have an appreciation of branding. Most will assume that this is a matter for the marketing department and, at the very least, doesn t stand up to the logical rigour that technologists look for in their dayto-day activities. So the reality is that not everyone will buy into the notion of branding. But keep in mind that everyone has a brand. If you do not create it then the market will create it for you. Many users think of their CIOs as IT managers. Some perspectives can be encapsulated in the term CI No. Branding is both a personal and a departmental concept. The CIO s brand is only as good as their department s brand. The department s brand is the sum total of the brands of all the individuals plus the associated technology brands. So for many CIOs we have to consider how we migrate from CIO to CIO 2.0 branding. The first step is to decide what you want your brand to be. By all means use the bullets above as the basis for your model. Second, you need to acquire the skills that enable you to live the brand. This is no trivial exercise as the skills armoury includes emotional intelligence, political awareness, service, people leadership, marketing, visioning and business awareness. You may already have a subset of these skills, but in most cases it is fair to say that the skills that have propelled you to where you are today are not the same skills you will need to take this next career step. So now we know how we want to be perceived and we have the capability to walk the talk. The issue now is that people still see the old you. First, you are encouraged to reengineer your profile (e.g. on LinkedIn) to highlight aspects of your experience that support the branding and to suppress references that suggest IT manager. This will at least ensure that people who have yet to meet you see you as you want to be seen.

4 Of course, people who know you will not be so easily influenced. They will take a little longer in respect of resetting their perceptions. So, secondly, you need to frame all your activities and outputs such that they are aligned with the new branding. Similarly, your language needs to reflect that of a business leader (strategic imperatives and innovation, rather than virtualisation and projects). Clearly, you are only as good as your people, so ensure that you have standards and development programmes in place to ensure consistent high quality across the team. It is worth considering a T-model for your people. The stem of the T reflects the deep technical knowledge they need for their role. The horizontal bar reflects those broader skills that are essential to success in a service environment, namely: Communication (Interpersonal not IP) Creativity Service Commercial In many respects, the skills your people need are the skills that all leaders need. Succession planning is much easier if your staff already have these critical skills. Ultimately, brand management is about establishing trust. Trust comprises: Credibility Reliability Intimacy Selflessness CIOs who deliver business solutions (credibility) on time (reliability) and have strong interpersonal relationships (intimacy) with a laser focus on service/the interests of others (selflessness) are required. It s really that simple. But of course it is not that easy. The benefits The path to CIO 2.0 is challenging. However, the rewards will make the journey worth taking. The organisational leaders will warm to you and increasingly include you in business strategy. There will no longer be concerns about the value you deliver as an individual Your staff will raise their game as they know their leader has real power in the organisation. So often CIOs (and thus their staff) are the victims rather than the co-creators of business strategy Your suppliers behave more like partners and will thus be less inclined to circumvent you as part of their business development activities. Over time they are more likely to share risk, which will, in effect, enhance your value in the eyes of your CxO peers You will feel more motivated because the value you deliver is tangible and thus your main focus is no longer on remaining employed

5 Conclusion As a CIO, you have always known that your role is critical to the organisation. No doubt it has been at times frustrating to be kept out of the leadership circle. Possibly the combination of having to do more for less budget has kept you from dwelling on this as you sprint relentlessly on the operational hamster wheel. Today, organisations need a digital leader. I believe this is a natural extension to the role of the CIO. Many organisations are unaware of what they need and so it is unlikely that they will consider a developmental path to migrate you to CIO 2.0, opting for a solution that involves a headhunting firm. In my view, playing a wait and see game is too risky. Some would say unprofessional even. No matter where you are on the CIO migration spectrum, you need to make your development, and that of your people, a priority. As we have seen, the return on this investment will be felt by all parties in the IT value chain. About the Author Ade McCormack is a former technologist who is now an advisor on the digital economy and digital leadership. He is a judge on the annual CIO 100 awards. Ade has an opinion column in the Financial Times advising business leaders on IT issues. Similarly, Ade has a column in CIO magazine advising CIOs on business relevance. He lectures from time to time at the MIT Sloan School of Management on digital leadership and has written a number of books including The IT Value Stack A Boardroom Guide to IT Leadership. About BCS We help global enterprise align its IT resource with strategic business goals. We work with organisations to develop people, forge culture and create IT capabilities fit to not only lead business change but to meet companywide objectives and deliver competitive advantage. IT has been gaining momentum within global business for decades and we ve been there from the beginning, nurturing talent and shaping the profession into the powerhouse that s now driving our digital world. Today organisations partner with us to exploit our unique insight and independent experience as we continue to set the standards of performance and professionalism in the industry.