The IT Value Disconnect
In a recent discussion between members of CIO Insight's advisory board about how CIOs can build stronger relationships with their CEOs, Columbia Professor and CIO Insight contributor Art Langer brought up an excellent point: That CIOs need to do a much better job of communicating IT's value proposition to the boss.
We've written about this issue before, but it's not old news. It's all part of the struggle to align IT with the business, but there's more specificity here. And it might be the biggest problem CIOs will have to rectify.
Forrester's CIO guru, Bobby Cameron, takes a deep look at the issue in a recent research report.
One striking finding (among many):
Only a third of the IT leaders in a Forrester survey measured postproduction to see if projects delivered the value that the business case anticipated. And less than half that number track IT's operations costs associated with enabling key business activities.
I've seen some troubling data on measuring IT's value, but that might be the most disturbing figure I've seen in a while. Check out Cameron's report for more insight into why this disconnect occurs--and what CIOs can do to overcome it.
One way to attack the problem is to get a better understanding of how CIOs should promote the benefits their shops deliver to the C-suite. Dan Roberts, founder and president of Ouellette & Associates, offers a solid roadmap. It's a great start to getting to where you need to be.
And tell us, IT execs: How does your company measure IT's value? And what are you doing to market IT's value to your business leaders?