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.
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!