Does Your CEO Understand IT?
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Readers have been weighing in with some very insightful (and pointed) comments about IT transformation since we posted a blog item questioning how vague the buzzword is. Some readers agreed that the term is rather ambiguous or misunderstood; others said "transformation" is rarely mentioned among IT workers in the trenches. One reader, Tony, agreed that "transformation" means many things to many people. A big problem, as he points out, is that CEOs have a negative or misdirected view of information technology: "A large group of consultants and some of the media have convinced CEOs that IT is stupid. Look at all the books that proclaim how IT is really bad, wrong or just useless. If that's true, I would like to see all these businesses and consultants turn off all the technology in their company for just one week." Check out the full comment (and all the others) -- there's a lot of smart thinking there. Then tell us what you think. Does your CEO look down on IT? Does he/she get it? What affect does your CEO's perception of IT have on the way you lead your IT organization? |
Comments (6)
Saying that IT isn't dumb because the company can't turn off their systems for a week is ridiculous. It's like saying the DMV isn't dumb, try not inspecting any vehicles next year and see what happens.
It is that sort of attitude that gets us in trouble. I have been development software for 25 years and have worked with lots of companies. Many IT organizations regard their users as dumb and treat them in a way that insulates the masses from IT -- that is our biggest downfall. That wall IT often puts up is what causes the distrust and misunderstanding.
Posted by John Walker | January 15, 2009 8:44 AM
I have been with my current company for 15 years. Over those years I have seen three CEOs. I have seen an evolution of understanding from the C-level regarding the value IT plays in "the business." In the past, IT was a pure cost center with dubious business value. Now IT is now something that can be leveraged for productivity and innovation, and they see technology as a business facilitator. I have seen, over time, an increasing commitment from the CEO to continued IT investment. A clear example is our commitment to our disaster recovery/business continuity plans (DR/BCP) and resources. IT is known to be a foundation to the ability of the business to do business.
It is also important to note that IT has taken an active focus to better align to business needs and also to anticipate business need and show value in proposing IT improvements. IT is not for IT sake. We are keenly aware that we must facilitate the business first and protect the business in any way we can. This is key to CEOs understanding that IT and the business are one and the same.
Posted by CN | January 15, 2009 8:53 AM
My CEO does not even know how to use a computer. It takes a lot more effort to convince him that something is worth pursuing.
It is definitely more challenging and puts a lot more pressure on me to do a good job explaining and "selling." But that's my job. Sometimes even the most obvious and well-researched project doesn't get approved, because I didn't "sell" it well enough and make it relevant to their perspective.
Often IT management complains about the CXOs, instead of reflecting on how they could have presented a solution or problem better.
I honestly think all IT management should have some sales skills/experience, maybe even take a sales/marketing class.
Posted by TechHobby | January 15, 2009 10:39 AM
I have been in the industry for a while. Not putting IT down, but one thing I have noticed over and over was the IT's attitude: we think we are on top of the world, forgetting the fundamental fact that IT is a tool for the business. Sometimes I think leadership reflects the attitude! When a CIO aligns the team to the business goals and makes sure we give more to the business user than they ask! Then, everyone will think we are awesome.
Posted by Monkey | January 15, 2009 7:22 PM
My boss, our CEO, understands the value of technology, yet is still bound to higher authorities (i.e. BoD and investment partners) for ensuring that IT dollars are spent efficiently and effectively. A lot of time, IT is still a cost center and regardless of the value a technology will bring, cost will be the overriding factor.
To CN's point above, DR/BCP, many CEOs are required to invest in this area (personal thought is that ALL should be required) since shutting down a business for several days or weeks would be devastating to many companies. I would not say that investment in this area reflects a CEOs understanding of IT, but merely that the CEO has common sense and can read a SWOT.
Bottom line is that IT needs to be a business driver and align highly with the business goals.
On transformation, my previous company touted 'transformation' in IT, but whenever a truly transformational idea was raised, it met with resistance within IT. The ideas were never even passed on to the business to gain any sort of feedback. They were merely brushed off. That builds a lot of reluctance within IT teams to spend time on transformational ideas. So my suggestion is that a business needs to define transformation clearly or be prepared to review many ideas -- good, bad, and indifferent.
Posted by ITGuy | January 19, 2009 10:54 AM
Great topic - Over the years I have seen many issues around IT from lack of alignment to immature process and, most importantly, lack of sales and marketing from IT on selling its services and improvement recommendations to the business.
Not to say IT is not doing its job, as having been on both sides of the fence, it's not easy for either the business or IT to run as a single well-oiled machine.
A couple of examples that come to mind -- one large global organization finally did an application inventory and found they had 400 payroll applications. Another was running 3 enterprise ERP applications -- in either case someone was not doing their job when these types of inefficiencies are allowed to occur.
Currently I am working with a number of these types of organizations and it is still surprising to see that they will not hesitate to cut IT infrastructure costs, but will not even look at their application cost and complexity, which can on average save most organizations 20-40% of the application spend.
When the CFO tells the CIO to reduce spending 10% per year every year and the CEO tells the CIO they don't have the info they need to make critical business decision, we can begin to see why business doesn't understand IT.
Posted by Tim Pacileo | January 19, 2009 11:35 AM