Sep 21st, 2009 |
Ivan Milam, PricewaterhouseCoopers Canada LLPThe evolving role of the CIO: 6 steps to shift from mere ‘service provider’ to ‘strategic business partner’
By Ivan Milam, PricewaterhouseCoopers LLP
More than a decade ago, most Canadian public sector and government CIOs focused on providing “the pipes, power and ping” for their organizations. Their primary job was to keep the department’s IT infrastructure and applications running. Their priorities were often set by other executives whose primary purpose was to drive down cost while demanding increased service. However, over the past 10 years public sector CIOs have increasingly come to the understanding that to be an equal partner at the executive table they must break from their traditional “infrastructure delivery” roles and embrace a much more strategic one of an equal business partner in the organization.
As a trusted public sector advisor with PwC, I have helped many departments make this very important transition. Through these experiences, I’ve witnessed CIO’s make this journey by using, to varying degrees, elements of the following 6 key activities.
1. Deliver core services efficiently
IT departments are continually asked to do more with less. CIOs who are strategic partners demonstrate to business executives that they’re delivering core services at the lowest expense while achieving high levels of client satisfaction. Without this foundation piece, CIOs typically get stuck in the process of continually defending IT’s cost instead highlighting its value.
But doing so means utilizing all available options to enhance IT efficiency. These include outsourcing, co-sourcing, co-partnerships, and improving collaboration with other stakeholders and partners. Leveraging all options to improve the day-to-day IT functions free up CIOs to do what CIOs do best – highlight strategic and innovation opportunities to help drive their organization’s to meet their strategic goals and outcomes.
2. Immerse yourself in the business and demonstrate your knowledge
CIOs must not only show value by delivering services efficiently. They must also develop a genuine understanding of the business outside of IT operations. High performing IM/IT executives learn about the business processes, business drivers, and strategic focus of all business units in their organization. By showing their knowledge of the organization and selling ideas supported by data and a sound knowledge of the business, they demonstrate they are not only a technology person but a strategic peer at the executive level.
3. Align your innovation and ideas with the organization’s strategic vision using a structured process
Instead of taking orders at the board room table, leading CIO’s are proactive in presenting ideas that align IT’s investments with the organization’s priorities. One way to do this is to develop a structured process for prioritizing innovative ideas for IT investment. A structured process helps to identify, evaluate, develop and present new IT innovations to the organization. Then, as an executive team, they can determine the best ideas that align with the organization’s strategic vision.
4. Stay engaged by connecting with people
Gaining visibility at the executive, stakeholder and staff level with active participation and collaboration is another tool used by many CIOs. Building these relationships allows CIOs to share the organization’s vision and learn how vendors, suppliers or employees can contribute.
Successful CIOs are often seen engaging stakeholders by participating in local public speaking events to communicate where they’re taking their organizations and how stakeholders can help. Other platforms used to get the message out to staff include wikis, blogs and social networking tools. These methods contribute to collaboration and innovation, and build awareness around the IT department’s value to the organization.
5. Enable agility with effective architecture
Typically, a lot of companies have a complex IT architecture with different systems that do not work well together. This hampers innovation and the agility to solve problems quickly.
CIOs who bring IT from the back office to the executive table develop and more importantly implement architectures that provide flexibility to handle the changes that innovation brings. Reducing system complexity and increasing standardization are two key approaches that allow organizations to pivot on a dime when embracing new technologies or discovering new priorities.
6. Keep an eye on risk
The balancing act for CIOs is to bring value while remaining cognizant of risk. IT represents a significant area of vulnerability for an organization in different ways. Without adequate controls, companies may leave themselves open to fraud, security breaches, or a loss of intellectual capital.
Effective CIOs balance security, risk and compliance requirements with innovation.
With technology playing such a large role in our lives today, CIOs must be equal partners at the executive table. Today, an ever increasing number of CIOs are advancing down this path. For each CIO and each organization, the journey is different but many of the steps are similar.



