A new study from Forrester
Research has highlighted the evolution of the role of chief information
officer and sparked debate about the qualities that good IT leaders must
possess. The research points to a “fork in the road” for IT chiefs in 2008 as
they must choose whether to become a business change agent, thus gaining greater
influence with the board, or remain as general manager of IT operations.
Only the top 15 to 20 per cent of IT leaders will ultimately take the risk
and aim to integrate more with the business by developing peer relationships at
a business level, and achieving greater insight into product and service
innovation and how it can affect change, said Forrester vice president Alex
Cullen.
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The remainder are likely to continue ensuring IT runs well within the
organisation and meets business expectations, although this type of IT chief is
still vital to firms as IT expectations grow, Cullen added.
Following the former path, however, may lead to greater rewards as these
change agent IT leaders are promoted as internal board members and ultimately
could reach the position of chief executive, said Cullen.
“The path to chief executive used to be via CFO but this changed many years
ago,” Cullen added. “Now, it is based on success in running a line of business
and knowledge of how the business works, and CIOs have key [strengths in these
areas].”
However, the job of head of IT is more complex than that, according to other
experts. Carl Bate, UK chief technology officer at consultancy
Capgemini, argued that business change
agents must first gain experience of “running IT as a reliable business”,
although they must also be prepared to innovate for business change.
“We’re using a planning tool with some of our CIOs to help understand and
plan this mixed portfolio of cost and value, and business and technology,” Bate
explained. “I suppose in the end perhaps there isn’t a single choice of
direction for all CIOs, and managing this ambiguity is often where the value is
to be delivered.”
Tim Murfet, head of technology consulting at Accenture, agreed that rather
than bifurcating into two different roles, the IT leader should have both
qualities of general manager and change agent.
Murfet added that increasingly IT chiefs come from the business rather than
the IT side, as this role allows them “to get a good overall view of the
business and the way IT enables the business”.
Andy Mulholland, global chief technology officer of Capgemini, argued that
there is a “huge opportunity” for career development for IT professionals who
rise to the challenge and take a lead on business change and innovation. “If you
look at what the CIO is doing in the organisation, it is keeping a cohesive use
of everything the role was originally brought in to get cohesion back into the
business,” he argued. “The key [to success] is how they can change their role to
one of front-office value creation.”
However, Seamus Reilly, head of information security at consultancy
Ernst &
Young, argued that the most successful IT chiefs are able to recognise what
the organisation wants from them be it a general manager of IT or a dynamic
change agent and deliver the skills accordingly. “A business might want
stability one year and to get into different markets the next,” he said.
“Organisations want different CIOs at different times, and the smart CIOs
recognise this and can sell themselves.”
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