Elevating the Role of the CIO – Part 2 of 2


In Part 1 of this article, we discussed the requirement for a management system to assist CIO’s with generating more value. We teed up the idea of how a CIO can improve their relationship with their Board of Directors by managing technology as a business.

There is significant thought leadership originating from a group call the Technology Business Management Council (www.tbmcouncil.org) regarding these same concerns. What is a CIO’s management system and how can they implement something that is transferable from one industry to another so their peers and board might more easily grasp their world?

As a reference, check out the Technology Business Management Framework below.

tbm-council-book-framework

This framework provides a consistent language to communicate the world of technology in business terms that are industry agnostic. CIO’s are dealing with these challenges on a daily basis, and they are all implementing management systems to plan, monitor, and preside over these concepts. Imagine if each CIO were able to articulate their management system and approach to adding value using this framework? If they did, they might be closer to the CFO and Chief Counsel role standards described in PArt 1 of this article.

Further, if CIO’s were able to manage, communicate, and deliver using this standard framework, I suggest that they would change the dialog they have with their boards of directors. Think about the questions that Boards ask their CIOs. They include but are not limited to the following:

  • How are you investing in the business to create new and unique value = Innovate to Grow & Compete
  • What are you doing to control operating costs = Optimize Your Cost for Performance
  • How are you addressing risks like cybersecurity? = Transform by Enabling Agility
  • How do you compare to your peers and competitors? = Understand and Benchmark Your True Cost and Performance.
  • What is your sourcing strategy? = Position to Manage Your Supply and Demand
  • How are you improving your people? = Drive A Performance Based Culture

The framework is comprehensive enough that it is applicable to any size company in any industry in any country at any point in the life-cycle of a business (early adopters, plateau, or decline). It demystifies the business of technology using common terms understandable by multiple layers in a company from entry level through board level.

To truly explore the value of this framework a more detailed discussion regarding the decomposition of these framework elements into a service catalog and standard costs elements is needed. And, that’s exactly where the TBM Council is headed, per a recent article that can be found here.

Consider this provocative proposal: by embracing a framework like this, and establishing a management system (e.g. service catalog, cost model, etc.) under it, you will position yourself to improve your relationship with your board of directors.

The conversation has just begun! More details, perspectives and thought leadership is coming. To join the discussion, visit the TBM Council and get in the game!

Elevating the role of the CIO – Part 1 of 2


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What is Your Management System – Wired Magazine

Have you ever wondered how an organization adds new value and manages their business? How does a management team come together and exert their will on an organization so their commitment to the Board is achieved? How do they deliver increased revenue, launch new products, lower operating costs, integrate new sales channels, improve customer service, innovative solutions that create competitive advantage?

For a publicly held company, we see the financial results of these efforts via annual reports, quarterly filings, and the classic measure of stock valuation. We measure the delivery of incremental value long after it has been created within the company. So, how does the management team build the new value? There are many actions and decisions required to build a new value chain (e.g. agree on product design, service offerings, market entry strategies, etc.). The value opportunity is unveiled when the product, sales channel, or new value is deployed to the public. Often there are months, even years of work that leads up to the new creation of value. The value is created minute by minute, hour by hour, day by day, and ultimately, month by month.

In the area of value creation where technology is a key driver, how does a CIO and their team contribute to this value? How do they manage their business?

Wired Magazine recently published an article that explores this question in greater detail and offers a challenge to the CIO’s of companies to build a more standardized management system. The article is available here.

In summary, the role of the CIO must mature in the coming months and years to create a more consistent and transferable management system for their companies. CIO’s need to manage technology like a business. In doing so, they will elevate themselves amongst their peers and in turn create more customer, competitive, employee, and shareholder (CCES) value.

In part 2 of this article, we’ll explore how CIO’s can unlock their relationship with their board of directors and up-level their positional ability to generate CCES value.