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Expanding the CIO Mandate: A Claim to a Seat on the Board

Gordon Watt uploaded Tue, Aug 19 2008 5:28 PM 1,568 views

Business leaders are becoming increasingly aware of the vast and growing potential of IT in areas both within and beyond its traditional scope. Some appreciate the myriad of technological opportunities and options available, but few have the knowledge and understanding to be able to translate these into business parameters upon which to base commercial decisions. The CIO is uniquely placed and qualified to bridge the gap between opportunity and realisation: to inform, educate, advise and guide his business peers in the possibilities and pitfalls of exploiting of emerging technologies. Does this mean that he should be

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Expanding the CIO Mandate: A Claim to a Seat on the Board
seanizations you may be able to e ke upper echelons of large orgLooing into th
hilsost IT leaders managed ing influence: the CIO. Wt in the past ma new emerg
y are now increasing their ice delivery functions, a growing minoritIT serv
eir resibilities or raising the y ither extending the range of thsponinfluence be
ie to be a growing trend? el heir contribution. Wll this provlevof t
aoiion of influence. CIO, pst
n underpinsthe vast majority of the e modern economy, IT ow In most sctors of the
paion. In many, IT provides the oes crucial to a company's oertbusiness prcess
ipigatl eision making. In a growng e to manage the mass of data suportn tcicadcmans
fuus function on IT has been ehelming reliance o particlar bsinessnumber, the ovrw
e's domain:back office ledd and these have been annxed to the CIO acknowge,
,doline services businesses. In a few n in banks, logistics in retail an nprocessig
fie a breakthrough for the eill dictate the future o the business, ethr asdisruptiv IT w
ers.eponse from the followaeleade or as a threat demanding a competitive rsmrkt rs
inial arefhe vast and growng poteteaders are becoming increasingly aw o tBusiness l
aiional scope. Some appreciate the f in areas boh within and beyond its trdto ITt
ale.e have the knowledge yriad technological opportunities and options avilab Fwm
into business parameters, such as dning to be able to translate these an understad
hibae commercial decisions. The and cost and return, uponwch to squntified risk a
gap between opportunity and is uniquely placed and qualified to bridge the CIO
in the on t inform, educate, advise and guide his business peers realizati:o
gehnologies, to fulfil newapplications, biies and pitfalls of exploiting emergin tcpossiilt
uhdiffeent channels.sourced throg r
tis warrant a position on the board?Does h
f ain board. In the USA, the number o pically CIOs will not be invited to join themTy
has always been very small. The ive ditoon the main company board executrecrs
il suit. The debates about CIO boardte that UK main boards wll folowindicaions ar
nn colloquially as the ebhehefore about the operatig board (knowmmersip ar ter
pCo, Exo, etc OC . s to carry i operating board or executive committee tendThs
ulautin of orporate oe responsibility for the formtion and execocprimarycorprat
iion issplion the way such a board . But even well informed opn t business strategy
onstituted. should be c
- 1 -Expanding the CIO Mandate: A Claim to a Seat on the Board
ll prise the leaders of each critica ne view is that the operational board shoudcomO
be all functional perspectives. The ion, so that its decisions emracbusiness funct
hof the give-and-take of te lei taanaging functional parochialism is part rationa sht m
ction, members will learn to aie Through their energetic interabord's busnss.
fninlpepectives. Indeed, operating piaethe value and potential of other uctoa rsaprect
fistic of a Gestalt, here the whole o ieard will assume the characterwat ts bst, the bo
fitotuent, specialist orldview' somehow becomes more than the sum o s cnstiits 'w
vf the critical role of the odel the CIO deseres a place, by virtue oparts. In this m
or she lead.function he s
hhould comprise executives wo altenaive view is that the operational board sAn rt
end insight to contribute to th veheponal stature, credibility, experience aha t ers
inerative for all functions to be aic diection of the business. There s o impstrtegr
e e fully biefed and able to contribute ard members are expectdtobrrepresented: bo
ufor the discussion to be fruitful,dionofan aspect of the business. Natrally, to iscuss y
ves. sts must offer different perspectithe protagoni
uis (or her) breadth of vision: the CIO 's claim to a seat in this forum cold be hThe CIO
i, whose role entails understanding few officers, wth the CEO and CFOis one of the
euld equally wll be the dnt with all parts of the business. But it coan engageme
led that individual to excel as lusive executive strengths that have enabparticular exc
uion of long term vision. aalical dispassionate, deliberate exectCIO:nyt,
ingboards is an irrational elity is that the composition of many operat The ra
s ae automatically ise, drawing from both of these models. Some memberrcomprom
eoeut for the others e because their functions simply hav t be reprsented, bincludd
erf considered iga bowul individual is usuallyben roust and p de rigeur e. Som
es, including the CIO, mayb ly powerful and critical strategic contributorpotential
ifoof others (notably including the ldd ee of the prejudice or dscomrt excuebcaus
nd the functional specialists. ho ant a buffer between themselvesaCEO)ww
ofpiebers are invited by virtue In ractc, mem cultural legacy as bee- it has alwyn
nis way; doe in th community - he is one of us; regulation - he has to be present to
ccount; and occasionally be held toa talent pite being CIO. For - he is a good egg des
of careful campaigning around ,eing invited to join this board is a matter a CIO b
- 2 -Expanding the CIO Mandate: A Claim to a Seat on the Board
ote culture and the perceived engths, taking full account of crporapersonal str
aic conibuion of IT in the sector. strtegtrt
lusion terminal?Is exc
fvery talented individuals in the most ve large organizations the demand, rom In ry
iothe operating board exceedsits eional and functional postions, for seats n senior rg
inviting the CIO onto the board, l veral times over. In some casesviabesize se
ouo set a precedent that the CEO is oheise elcomed, wld be seen talthough trww
eg committee can be an effective illuntenance. Then a seat on the stratyunwing to co
ilimately appoved by the main board ise. Alhough corporate strategys utrcompromt
iit, and the tactics by which it wll be eomedation of the operational board, on th recmn
uet strategic options, shaping daften conceived in other forms. Idnifyingrealize, re o
ieblancing the risks to dlenging the alternatives, assessing the upsd, aan chal
a hepreserve of the strategy rategy recommendations - these ret formulate st
e conitently meritocracies veittees. These groups are morssdelopment comm
is is a forum in which the CIO dponal strengths and contribution. This recruite on ers
ndispensable.almost i
sonigalue in strategic forumDemstratn v
einput is the minimum ofategic debate, the CIO's exprt IT In the realm str
ding the legitimacy of the company byion.e is responsible for safeguarexpectat H
equirements. He is atit complies with all legal and regulatory rensuring th
ampany b guaranteeing that ll ble for upholding the reputation of the coyaccounta
pive the efficiency and ive infoaion is properly protected. He is exected to drsensitrmt
elentless improvement in information ffevn f he company by overseeing rectieessot
ing and realization of strategic goals.eup its operation, decision makservics to sport
i e has tdonstrate his authortyand ied as a strategic force, th CIOo emTo be recognz
an acognied responsibility. The wy he iuion above and beyond his owrea of rezcontrbt
iheecutive experience, ill vary depending upon hs or er personal xachieves this w
he-Type (see Brinley ledge and character strengths, as indicated byis CIO Rolknow
Leading Edge Forum Report, May lding Effective IT Executive Teams", Platts "Bui
ndiving business change and 0il thiould entail identifyingad r206). Typcalys c
iuhh application of IT; recognizng and fonoportunities, possibly throg tetransormati p
tvl application of to competitive threats, particularlyhrough noeresponding
ies, through exploitation of ; identifying breakthrough opportunittechnologyor
ve tns and disruptive technologies.innovatired
- 3 -Expanding the CIO Mandate: A Claim to a Seat on the Board
naeic influence.Extendig strtg
f he main or operating board, the CIO should be a Even if not a permanent member ot
eholders ve remits to oversee the interests of sharfequent visitor. With their respectir
ilith a wide oh of hee boards wl be concerned wand well-being of the company, btts
hich the CIO is best placed to advise. They are range of considerations upon w
hften based on regulatory compliance, wich is oultimately accountable for assuring
finess iion They will be concerned to saeguard buskey financial and other nformat.
the uninterrupted provision of continuity, which is critically dependent upon
gility, re illbfed on fostering business aducing information services. Theyw e ocuss
illbanding fhich inabled by IT. They w e demlatency and raising the tempo, all o ws e
ov venessthuhbusiness process imprement, byincreasing efficiency and effecti rog
ill be continually searching for breakthrough leveraging IT in all areas. They w
opportunities to outpace the competition.
ipla in practice?How does ths y
orum, Gordon Watt and Brinleyogingesearch for the Leading Edge FIn their no r
aigs to determine the aining the expanded mandates of ledn CIOPlatts are exm
afl for them and that others cn vetegies that have been successudelopment stra
et or impede a CIO's quest for le and discover the factors that eithr assisemuat,
aic ifluence.strtegn
ons, including: illblooing at a range of related questiTheyw e k
- 4 -Expanding the CIO Mandate: A Claim to a Seat on the Board
1. aing board?e on the executive committee or opertShould the CIO aspire to b
2. eport to the CEO?Should the CIO aspire to r
3. ement in the mo suited than others to engagAre any of the CIO Role-Typesre
copn's tegi debate?maystrac
4. hprovision, through vendor partnersips, Does subcontracting IT service
hs strategicinfluence?ooing or off-shoring, help or hinder te CIO' utsurc
5. uive diors? ild hips with the main board non-exectrectShould the CIO burelations
Waould this deliver?ht w
7. function ure his place in the strategic debate? Can the ITHow can the CIO sec
bdible model of excellence?ecome a cre
itin the research, please fould lie to learn more about ths project or take par I you wk
iheBrinley or Gordon at ……contact etr
- 5 -