IT and business alignment tops the list of concerns and priorities for CIOs in 2004, according to a number of recent IT executive studies. As IT budgets start to finally open up again, business executives are counting on their CIOs to make smart investment decisions that positively affect the business bottom line. Business sense for CIOs these days is no longer just gravy -- it's key to their survival.
IT/business alignment expert David Bashford offers some valuable advice on how CIOs can improve their business skills and earn a seat in the board room. Also check out our various Web resources for more news, advice and research on this timely topic.
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Table of contents
Expert's Corner
Research and trends
Alignment advice
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Achieving real alignment of the IT function and your business portfolio is one of the holy-grail issues facing CIOs and CEOs today.
Its importance is a prima facie example of why Nicholas Carr was wrong and IT does matter. Some might say that IT did get away with a little dawdling in the past, mainly because no one quite understood what the organization was doing and cut the department some slack in favor of the newest corporate function.
As we all know, adolescence is now well and truly over. It's time to demonstrate commercial maturity and value along with the rest of the team.
So what does great business alignment look like? Clearly it's about partnership, it's about business functions following parallel paths towards the same objectives, and it's about connectedness -- keeping them aligned when business directions change and/or operational pace accelerates. This all sounds straightforward. But how does it work?
First and most importantly, its about leadership. There are times when IT needs to drive the business agenda, or champion new opportunities, or stimulate new efficiencies, or even protect the company against risk. CIOs have a critically important role in steering the corporation and this is the starting point for effective business partnership and alignment.
The second aspect is about service delivery -- commercially astute, excellently managed delivery of fit-for-purpose IT. CIOs need to determine the right level of service to meet the real (not necessarily requested) needs of the business and then ensure this is delivered consistently and cost-effectively.
Finally, it's about luck. Alignment is about teamwork and with the best will in the world no single person can make that happen. If you are fortunate, you will find willing allies and business partners in key seats around your board table. They will respect your opinion and appreciate your candor and integrity. Work with them to build your cause and help convince the others. If not, you may need to find a new boardroom.
This CIO Survival Guide is full of information, ideas and resources to help you achieve business alignment. Good luck!
David Bashford is the founder of myITdirector, a strategic advisory service for business and IT leaders. Prior to this, Bashford was CIO at the Economist Group and vice president of IT for The Walt Disney Co.