You ask anyone and a very predictable and commonplace answer will come, to take better decisions! Of course that’s true but CEOs need IT for many other reasons. Understanding the CEO’s needs is important for a CIO to obtain important structural, financial and other kind of resources for being effective. I would like to talk about this important aspect before getting into the second question in the series (which anyway is related to this).
I have interacted with many CEOs, and my understanding of their need for IT reveals that there are deeper (and sometimes hidden) needs CEOs have. CIOs must understand these for more fruitful relations with the CEO and for appropriating his support for IT. After all, the CEO creates enabling conditions for the CIO to succeed. Investing time and efforts in making the relationship mutually beneficial makes great business sense.
I have found that the CEO’s need for IT is driven by their deeper need to defend or enhance their power to lead in the organization. This power manifestation may be with respect to multiple stakeholders, the external entities like the regulatory bodies or the board above and the internal hierarchies below.
I would like to discuss four such needs- mimetic, regulatory, political performance and control.
CEOs need IT to be seen as leading a progressive and contemporary organization. Many ERP implementations in sectors like auto/ auto ancillaries are driven by the mimetic processes in the competitive landscape. Needless to say, many of these do not succeed unless matched with an equal change in the organization’s structures, processes and culture. With newer fads like social media, cloud etc. emerging; CEOs would want some noise and association with these fads.
CEOs need IT for meeting the requirements of the regulatory bodies. Many of the IT initiatives in banks or insurance companies are regulation driven. With increasing demand for compliance to these regulations, CEOs need for IT will also increase. That’s quite simple to understand. The difficulty for the CIO comes when the CEO’s need for IT is driven only by the regulatory demands. Any agenda beyond that does not cut much ice with the CEO.
Then there are deeper (and hidden) dimensions of the need. CEOs sometime need IT to maintain their political performance and the powers they enjoy by the virtue of their position. They can sustain their powers given by the boards by keeping the organization functional. If IT plays an important role in creating a functional organization, CEOs will focus on IT whenever the organizational effectiveness becomes an issue. I know of an organization where IT is the backbone for the business value chain of the organization. When IT became a sore point and a source of dysfunctionality, the CEO fired the legacy CIO, brought in a new CIO and gave him all the support to overhaul the IT infrastructure. Not only that, he also put his might behind the CIO to deal with the resistance from the IT staff. But once the IT infrastructure was in place, the CIO found it difficult to push other projects, as CEO could not care less.
CEOs also create ‘systems of authority’ to remain in control and on top of things. These systems of authority can be both personal as well as bureaucratic and built through the processes, practices, which helps the CEO remain in touch with the pulse of the organization. Being in touch with the pulse of the organization helps the CEO manifest and manage the power equation with the hierarchies below him in his favour. The need for taking better decisions is underlined by deeper aspects of power play and remaining on top of things.
The system of authority can have both formal and informal aspects. IT can help create the personal system of authority for the CEOs and CIOs can leverage this need by creating appropriate IT infrastructure and systems. It can range from a simple MIS to a complex dashboard for the CEO to be in control. With the CEO remaining in control, obviously there will be affected parties (those who are controlled). How does a CIO manage this delicate equation spells success or failure for him. One important question the CIOs need to ask is who is going to gain power and who is not by specific business projects being undertaken.
Many CEOs may not be able to articulate this need clearly in words, it is extremely important for the CIO to sense it and work towards the same.
As a CIO, you will need to answer a few questions.
What is your understanding of your CEOs need for IT?
How much are you able to fulfil that need?
Are you doing the right things keeping in mind the power equation of the CEO with those above him and below him?
Are you appropriately leveraging and appropriating the CEO’s needs for IT?
Can you relate your current bottlenecks with the perspectives emerging through these answers?
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