The CIO Assistant's Blog

There are recently a host of posts inquiring about whether the CIOs of the world are joining the social media bandwagon or not. One is from NetworkWorld with “12 CIOs who Tweet”. The most recently one is from fellow CIO blogger George Tomko with his post “Why CIO are not using Twitter?” in which George made the following remark:

“Very few CIOs use Twitter. This is not to say that they are against using Twitter. It also does not mean that they are not interested in social networking tools. Three major factors contribute to the slow adoption by CIOs and, ultimately, the companies for whom they manage the deployment of such technology.”

He went on to describe these 3 factors which I would encourage you to come over and read more about, it’s a great post. I posted my comments there:

“As with any good questions, there is no straight answer to “Why CIOs are not using Twitter?”. I would say that its adoption/use by the CIOs depends largely on 3 factors:

1. The persona of the CIO – Some are more techno-inclined, hence more techno-advanced than others in using new tools. There is no evidence to say that one is more capable than another in terms of making an informed decision when the time comes.

2. The level of maturity of IT in the organization – Depending on whether IT is highly effective (optimized in my terminology) or not, issues of security, privacy and productivity may or may not be easy to tackle.

3. The nature and culture of the business organization – Some are more “social” or “media”-centric than others, hence the different rate of adoption. Likewise, the risk averse mentality is more of a corporate one than a particular CIO trait. A risk-averse CIO won’t last long in a high risk-tolerant company.

and would like to expand on it here.

1. To Tweet or not to Tweet, it depends on the Persona of the CIO  - Teeting is a personal, professional and social activity at the same time. Some use Twitter to “follow” newsbreak or celebrities the way many of us following CNN and the like. Others use it to stay connected and exchange tidbits of information among their communities of friends. Others yet use the platform in a creative way for marketing reasons. There shouldn’t be any difference from a CIO user to a non-CIO one. To tweet or not to tweet is more of a personal choice depending on his/her persona.

2. To Tweet or not to Tweet, it depends on the maturity level of the IT organization - As explained in an earlier post (A Darwinian view of a successful IT organization), the challenges facing an IT organization in the early stage of evolution (Optimization) are different from those in the later stage (Growth). While on surface they all need to cut costs and add values, those still working toward an Optimized state (similar to the Level 5 of the Capability Maturity Model – CMM) do not have in place yet a process or mechanism to automatically and effortlessly adjust to technological changes. Social Media in general and Twitter in particular are good examples of those changes. The apparent slow adoption of changes is not because of the unwillingness or risk-averse attitude (of those CIOs) but of the un-preparedness to deal with such ramifications as threats to security, privacy and productivity.

3. To Tweet or not to Tweet, it depends on the nature and culture of the Business – One statement making the round lately is that “CIOs as a lot are more risk averse those days”. Some like Brian Gillooly from InformationWeek [Ref. 1] even called the risk-averse attitude “inherent” and “potentially disastrous for the company”. My take is different: I think that it depends on the Business and we cannot make a blanket statement for all. If some CIOs exhibit a risk-averse approach to social media or any other new technology, it could simply because the CIOs in question are in tune with the Business or with its risk-averse culture. It is then neither inherent nor more disastrous than some CIOs too eager to push through new technologies in the name of innovation while the Business doesn’t warrant one.

By understanding these 3 factors, the smart CIO would listen hard to the stakeholders to understand their perception and expectations in order to address them accordingly, resist the temptation to follow the crowd and stay true to his/her image of a no-nonsense business leader. To tweet or not to tweet, that is a personal choice. To adopt Twitter or other social media corporate-wide is a business decision to be based on demonstrated benefits and values, not on any ideological or personal preference.

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[Ref. 1] Global CIO: Have CIOs Become More Risk Averse? by Brian Gillooly, editor-in-chief of events for the InformationWeek Business Technology Network.

          business, CIO, CMM, maturity level, optimization, persona, risk management, social media, twitter

A fortnight ago, I submitted a post called “3 steps to a successful CIO” in which I surmised that his/her journey from the geek kingdom to the boardroom would follow a Darwinian evolution. This follow-up post will expand on that theme by suggesting that this journey cannot skip over any step but could be accelerated through a conscious and judicious application of the 3 concepts: Optimization – Alignment – Growth. Each concept will be further elaborated in an upcoming 3-part series.

Alignment cannot be achieved without Optimization -

In reading recent articles on IT challenges, one realizes that the highest preoccupation by an CIO today is the issue of Business-IT Alignment. A survey run by Peter Thomas back in January provided some good indication: 27% of the senior IT managers said that Alignment is at the top of business issues that they face, followed by Cost Saving at 14%. Yes, the latest poll today might show Cost Saving gaining ground, but it is more an example of Business-IT Alignment in this economic downturn situation than a preoccupation with Optimization per se.

Yet another survey of more than 500 executives, this time by Bain & Company about a year ago painted a sobering picture about the risk of being Aligned while not Optimized. The key findings were that:

“Nearly three-quarters believed their IT capability was neither highly aligned with their business goals nor highly effective … These firms recorded a slower rate of growth–2 per cent below the three-year average–while spending the same as the average on IT.”

and:

“The rarest breed was both highly aligned and effective. Such “IT-enabled” organisations amounted to only 7 per cent. But they recorded a compound three-year growth rate 35 per cent higher than the average. Moreover, they spent 6 per cent less than the average respondents.”

but the real eye-opener was:

“More troubling was the 11 per cent of companies in which IT was highly aligned but not highly effective. These companies fared much worse. Their IT spending was 13 per cent higher than average, but their three-year growth was 14 per cent lower than average. These firms were in the “alignment trap”.”

According to the survey, an IT-enabled organization spent 19% less and generated 49% more in growth rate than a highly-aligned-but-not-highly-effective one.

I remember one IT Outsourcing organization who prides itself for its Flexibility. The IT group is highly aligned with the Business in this vision and structures its services accordingly. It means that it offers customized IT Infrastructure Management services to its clients with minimal change to the support model that the client is familiar and comfortable with. The outcome after several years of accelerated growth is that the IT spending rate started to overtake the growth rate because they are forced to maintain different technology platforms, operating processes and support staff for different clients. The sad truth is that this is not a unique case.

Growth cannot be achieved without Alignment -

What happen now to those highly effective IT organizations which have standardized the processes, implemented an enterprise-level resource planning system, consolidated all data centers, and delivered projects on time, on budget? The chance is they are pretty much aligned with Business already (7% as mentioned above). But the same survey by Bain & Company also indicated that more than half of these highly effective IT organizations (8%) were not aligned with Business at all. Why?

It should not be a surprise if we understand that Business is a constant change. It flies in the face of Stability and Predictability that these 8% try to instill in the organization. A CIO who has succeeded in optimizing its IT shop, often at great costs, would not be open to new elements which could upset the established order. Does it sound familiar the cautious comments from a CIO about the adoption of any new platforms, be it mobility, business analytics or social networking media?

A case in point: An insurance company would like to provide its assessors a quick,easy access to the claimants’ files (policies and claim records) while on the road. The Chief Marketing Officer (CMO) prefers an Internet-based solution, accessible anywhere by authorized agents equipped with Blackberrys. She needs to introduce the service fast to use the new Claim Assessment capability in a CEO-approved blockbuster ad campaign. The CFO supports his colleague CRM, thinking that such a solution could be put in place within a month and would be inexpensive. The CIO is in disagreement. He thinks that the Internet is not stable (its uptime is not 100% guaranteed) nor safe (for privacy of data). He proposes instead a Web-based application located on a secured server behind the corporate firewalls and accessible over a secured VPN. It would take several months (just ordering the connection lines from the telcos would take more than 6 weeks, notwithstanding the need for a business case, a feasibility study, a revision of the enterprise architecture, an operation readiness assessment, a project charter …) and the investment may not be insignificant as the CFO has thought (sorry, no figures available yet). Who is right?

In my mind, the CIO has failed to stay aligned with the business and regardless of which solution would be picked eventually, he misses an opportunity to connect and solidify his position as a business executive. The CIO should realize by now that his company’s business (and his) requires quick and sound solutions at the same time, not a trade-off between one business imperative (quick to market) and another (safeguard of confidential data). He should anticipate such request from a fellow CxO and be ready with a win-win solution instead of coming across as a business ignorant.

Optimization cannot be achieved without Growth -

On the surface, the CIO can cut costs, maximize the use of automated tools, minimize the number of non-standard equipment, trim the staff, eliminate overhead expenses. But for how long? The harsh reality is that there is a limit to the resources at hand and without growth, a limit to their optimization. Growth provides scope and scale that the CIO can leverage.

That does not mean that the IT organization is counting on business growth to increase its budget. Growth also means getting more mature, more “mainstream”. Mature enough to let go of unnecessary baggage (do you really need to manage the Help Desk or the Data Center yourself?). Mainstream enough to blur the line between business and IT people, to let business staff using self-serve IT functions and to have IT staff participating in routine business functions (e.g. managing and reporting on its own financial performance). Only then that Optimization becomes a self-adjusted and continuous improvement process.

Accelerating the Evolution Cycle -

You may think that my premise is a circular reasoning or a kind of Catch-22. It could be if you think strictly in linear terms. However, if you consider the 3 steps of Optimization – Alignment – Growth as a collection of short evolution cycles that spiral upward (like a staircase to heaven), you can make small yet steady progress toward Success. Watch for the new series here soon.

          alignment, business, CIO, darwinian evolution, growth, IT, optimization

More than any other corporate executives, the CIO is the one who constantly struggles with his/her identity. Nobody ever questions the roles of a CEO, a COO or a CFO (except when there is an internecine power play among them). Other Chief Officer types are more of a label of convenience than true members of the executive suite, and they can learn from the CIO lesson when their time come up to claim the mantle of a true CxO.

If you view the ascension of an IT leader to the board level as a Darwinian evolution, you will understand that the evolution must go through a number of stages – which takes time – and its journey is fraught with dangers – which rewards the survival to the fittest. So, regardless of where you are on this journey, it pays to know that there are 3 steps to a successful CIO career:

 1. Optimization – Become the best and the fittest in order to survive
2. Alignment – Go with the forces to preserve the strength and stay alive
3. Grow – Adapt, transform and expand, in your image

Optimization means shedding your fat (cutting costs) and toning up your muscles (improving productivity) to be in top fighting condition. Optimization also means understanding your potentials (and their limits) and acquiring skills for survival.

Alignment means several things. The most obvious is the Alignment between yourself (the CIO) and the other CxOs, or between IT and Business. There is a lot of press about the gap or tension between these 2 entities (here is one example) so I will not go into detail here. However, there are 2 other types of Alignment that, once understood, will help you deal better with the CIO/IT – CxO/Business alignment. The first one is the Alignment with what I call the “forces”: the nature, the universe, the eco-system, anything at the macro level. You need to be well aware of what they are and stay in tune with them. Is Green IT one of them? It is up to you to find out, but remember that Business itself is affected by the same forces, so if you are not aligned with them, you are by extension out of sync with the Business custodians, the CxOs themselves. The last one (and may be the most difficult one) is the Alignment with yourself. Unless you know who you are in a conscious way each and every single moment along the journey, you are bound to behave erratically, influenced by external pressures and your own internal temptations. And this is a behavior unbecoming of a corporate Chief Officer.

Growth means transforming yourself to the new role by adapting to the environment and by expanding your reach. You become a leader of your pack (if you think as a wolf – which I do) or your tribe (if you think as a caveman or Seth Godin). You are no longer acting on behalf of yourself but also of your IT staff, your organization, your customers, even your communities. You would like them to be the best and the fittest, which brings you back full circle to another cycle of evolution.

Remember these 3 words: Optimize – Align – Grow and you are on your way to be the most successful CIO.

          alignment, business, CIO, darwinian evolution, growth, IT, optimization