Wednesday, April 1, 2015

From McKinsey&Co: Why CIOs should be business-strategy partners

Interesting article from McKinsey&Co. Though the article title says “CIO” I think it is relevant for all roles in the IT organization esp. at the leadership level.

It starts off with a very troubling finding :
few executives say their IT leaders are closely involved in helping shape the strategic agenda, and confidence in IT’s ability to support growth and other business goals is waning.
Another interesting disconnect the article highlights:
Nearly half of technology respondents see cost cutting as a top priority—in stark contrast to the business side, where respondents say that supporting managerial decision making is one of IT’s top priorities”.
One may wonder why IT is more pessimistic about its funding than the business itself is. I guess most IT organizations have been through one too many boom and bust cycles and so are a tad bit more skeptical about budgetary prospects even as the economy recovers.
They talk about:
Despite downbeat assessments of IT effectiveness, the results suggest one clear element of high-performing IT organi­zations: active CIO involvement in the business.
Here’s what they suggest as remedial actions:
  • Reimagine the CIO’s role. The survey results suggest that companies would do well to empower and require their CIOs and other technology leaders to play a more meaningful role in shaping business strategy.
  • Develop IT’s business savvy.
  • Build a distinctive recruiting engine.
Food for thought. Many IT teams do a great job of engaging with the business and participating in their strategy formulation, this article provides some bench-marking/self-assessment criteria.

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