Boards Still Pay Little Attention to IT
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Want a good fright? Then download the downright scary results (PDF)of a survey of 455 board members at $1 billion companies by Deloitte Consulting and Corporate Board Member Magazine. Yes, directors say the right things about the importance of IT, and make the by now obvious connection between effectively executing IT strategy and better financial performance. But their lack of attention to IT ought to concern CIOs and shareholders. |
Among the more distressing findings:
* Only 11 percent of boards discuss IT at every meeting (even though 67 percent agree that "IT strategy is important and should be discussed at the board level").
* A mere 14 percent of boards are "completely and actively involved" in IT strategy - by far the lowest percentage of the 12 "strategic issues or areas" covered by the study.
* Just 43 percent of board members indicate that they consistently have the information they need to be prepared for IT strategy discussions.
* 55 percent do not discuss measures of IT value at board meetings
The report also has valuable data on how directors view alignment (66 percent say IT is very well or well aligned with business strategy), IT's support for issues like productivity, customer satisfaction and international growth, and ROI measures.
What bugs me is that if IT still isn't a top issue at the board level, IT - and I mean both the organization and the technology - can't contribute as much as it could to growth, profits and value. What a waste.
Comments (4)
Not only does the board not pay attention to IT - but in general all senior level managers tend not to put IT "at the table". I love the comment - "what a waste" - because that about sums it up.
As a CIO for the past 8 years and an IT professional, I see it in every company, everday how little they truly understand, and therefore support and include IT at the strategic level in companies to the extend they should. Often a necessary afterthought, no matter how strategic a company might think they are.
In 2007 one might think the world would finally realize that without strategic use of technology - a corporation cannot be as competitive as it could be. Period.
Posted by Kelly | March 15, 2007 4:37 PM
Once CIOs stop talking technology and start talking business, they (we) will get a seat at the strategic business table. Keep in mind that if a CIO works for the CFO, that seat is already taken by your boss. When the CIO reports to the CEO, we get to be a part of the leadership team together with the CFO, Sales VP, etc. The CIO gets to lead the company in providing business services to enhance revenue, compete better in the marketplace, provide better products for their customers, and move faster then their competitors, all enabled by the best in technology. Those who report to the CFO work on cost reduction projects, ways to minimize headcount increases, and are looked upon as a cost center just like the delivery trucks - a money sink. They get to work on things that help the CFO look good through accounting glasses and short-sighted shareholders. These CIOs push ropes to get new software and hardware that improves the life of the IT workers. It's ultimately the CIOs choice which type of company to continue working for or to go work for. Over time the company that views the CIO as a glorified technician will get the lion's share of the the technology-only CIOs, for which I want to make sure all my competitors to have. The CIOs career choices can lead to the opportunity to move onto the radar screen of the CEO and directors on the board. The CEOs choices will be guided by the circle of influencers who will either get it or lose.
Posted by Marty (CIO) | March 15, 2007 9:49 PM
I work in the field of educations and I can tell you the last thing discussed at board meetings is IT. Proving that a vibrant infrastructure really changes the way a student can read is difficult! ROI is impossible and yet I am asked these questions by the finance office often.
Posted by Eliz | March 16, 2007 11:25 AM
Any time the term "director" or "officer" is in a title, it should imply strategic thinking. Strategic thinking is about products/services, market, market positioning, operational capacity to meet the demands of that now and future market, and value, value, value. If a CIO cannot think and talk in this language, then they are not fulfilling the highest calling of the position and they are cheating themselves and their company. As to the board members, what's new. For most, understanding the implications of technology is too demanding. Without a strategic thinking CIO who can speak businessese, how can they know???
Posted by D L Thomas | March 23, 2007 1:48 PM