April 2009

CIOs face particularly unique challenges in uncertain economic times. It's more important than ever to be a proactive change agent who demonstrates strategic vision and leadership. Here's a recap of key ideas and trends to keep your team on track and enhance your leadership capabilities.

1. Become an outstanding CIO. According to Fiona Packman, practice leader at Egon Zehnder International, IT leaders who perfect their business expertise and embrace strategic change are most in step with current demands. Outstanding CIOs — those who ranked in the top 15th percentile — scored highest in results orientation, strategic orientation, change leadership and customer focus. Taken together, they are seen as strategic, client-based influencers, she says. Outstanding CIOs performed significantly better than good CIOs in all competencies except for people and organizational development — where they are equal. See the recent Smart Insights by Fiona Packman.

2. Sell IT's value. It's not enough to offer good IT services to your business; CIOs also have to take a tip from the public relations department and sell the value of IT to the rest of the business. That's a role CIOs are increasingly taking on, according to a panel at our recent Smart Enterprise Exchange event in New York. Pedro Villalba, Senior VP for Information Technology and CTO at Emblem Health, says educating the business about IT initiatives is key to getting buy-in. Kamal Bherwani, CIO for New York City's Health and Human Services, agrees: "Everyone has to see IT as an asset, not a cost," he says. "You can't innovate alone," he says, so build a track record and others will become engaged. Download Villalba's slides here.

3. Lead confidently. Cutting costs "speaks to your credibility as a business leader. You know you're on par with or even ahead of the business people" when you, the CIO, do your share to boost the bottom line, says Terex Corp. CIO Greg Fell. Reading the signs and staying abreast of the business news is more vital than ever for CIOs, he says. Additionally, he recommends that IT leverage the trust and value it has built up within the business. If you've done a good job of defining the business value of IT, have documented ROI, "and have built your reputation to deliver a good return, then business people will invest with you" now, he says. Since he was hired almost three years ago as Terex's first CIO, Fell has made a special effort to "build the business acumen" of the company's IT people so that everyone understands business economics. If budgets do get cut, he says, "We will accept that as a good decision for the company. We will respect that and support the company." That's a different mindset than: "We have to think about how to keep our budget up at all costs," he notes. Read the full article here.

4. Create a checklist. The Office of the CIO organization recognizes that economic conditions are creating new environments and that the near-term requirement is for cost containment and prudent use of existing resources. IT expenditures must be accountable and oriented toward a measurable return on investment for customers. The organization also offers an IT Checklist for a Volatile Economy with suggestions such as: Simplify; Recognize what you don't know, can't predict and can't control; and Scrutinize every expenditure. For the full list, see the March 09 Smart Practices sidebar.

5. Chart a course for the future. At our recent Smart Enterprise Exchange live event in Seattle, Ken McGee, Vice President and Research Fellow at Gartner, told CIO attendees that 2009 might be the most important year of their careers. It's time to determine what level of innovation your team members will provide, he said: IT can follow the needs of the business and respond with IT solutions; IT can introduce IT solutions to IT problems; or the team can identify and solve business problems via IT. It's the last type of innovation that will truly distinguish the CIO, McGee said. Download the slides.

6. Empower managers, reduce stress. Rachel Johnson-Kelly, CIO at the Australian Securities and Investments Commission, has hired an outside company to provide top managers with leadership training that aims to improve their communications on the job. "We want people to feel empowered to call their peers on things that are not productive," she says. At the same time, Johnson-Kelly urges her managers and peers to work regular sessions of exercise into their schedules. In these stressful times, she says, "You need an outlet." In her case, playing basketball and training for a half-marathon "makes me a better leader. It's constructive for me and those I work with, and for my family. If I don't exercise, things build up and my temper gets shorter, and I am not nearly as productive." Read the full profile at our March 09 Smart Practices sidebar.

7. Hone talent management skills. CIOs in the Middle East and Asia who would like to develop their core managerial competencies and leadership skills can focus on these topics at a training conference in Dubai later this month. With all of the other demands IT leadership requires, motivating team members, structuring organizations, and developing and retaining effective talent sometimes fall away. Get more details about the event, scheduled for April 26-27.

8. Practice transparency. Forthright communications with fellow managers and staff is critical, says Gary Plotkin, CIO at OneBeacon Insurance, in Canton, Mass. Plotkin, who recently left the post of CIO at The Hartford Insurance Company's Property & Casualty division, notes that even when news is not the best, "Honesty helps people focus on the jobs that need to be done." Equally important is clearly communicating with other executives about "what really can and cannot be done" in terms of IT development and cost-cutting, he adds. Download Plotkin's slides from our Hartford, Conn., event here.

9. Be the chief enabler. In a recent blog post, Andy Mulholland, Global Chief Technology Officer at Capgemini, offered his insights into the role of CIOs as the economic crunch unfolds. Mulholland said CIOs he meets "feel they can do very little to reduce their own costs further regardless of what the business may demand." The option for an IT leader is either to become the "chief enabler     supporting rapid change, or be the person/department that is holding everyone else back," he says. If the CIO can't help the business work faster — such as using Web-based tools — he or she is not doing the job, in Mulholland's view. Read this blog as well other updates about other CIO management issues.

10. Follow other leaders' example. Carole Woodward, Vice President, Application Development at FedEx Office, told Smart Enterprise Exchange members at our Dallas event that the goal of IT is for innovation. Among her goals this year: "Lower costs, connect with customers and earn wallet share." She is involved in "differentiating our business from our competitors, positioning our business to thrive when the downturn subsides, and focusing on our people to ensure they're still with us when the job market improves." Download the slides.