PUBLICATION:  THE SKILLS PORTAL ONLINE

DATE:  21 AUGUST 2007

Gordon Institute of Business Sciences

Enter: The Contemporary Chief Information Officer

21-AUG-07

Reproduced with kind permission of GIBS

In a rapidly changing information, communications and technology (ICT) industry, technical ability will no longer guarantee you the strategic role of chief information officer (CIO). Contemporary CIOs are required to be knowledge leaders, change agents and innovators who extend their influence and expertise to others.

”Today, we don’t just talk technology; we talk business. CIOs need business acumen, combined with a highly professional and experienced approach to information technology (IT)," said Robert Sussman, joint MD of network and infrastructure management company Integr8, at a recent conference hosted by the University of Pretoria’s Gordon Institute of Business Science (GIBS).

CIOs now have the difficult task of evolving strategies that will drive the business. This means the CIO’s universe no longer revolves around resolving reactive IT support issues, like back-end administration.

“The ICT sector is uncompromising when it comes to follow-through and delivery,” said Sussman. “The CIO is really at the helm of what occurs at the front-end of the service-to-market spectrum.”

Understanding business processes and operations is an integral part of the CIO’s skill set. CIOs also need to focus on managing soft skills, like leadership, communication and executive level strategic planning.

Companies must be able to make quick internal changes to adapt to a constantly changing business environment. Few senior executives are skilled at leading all the major changes to capture value from major IT-intensive initiatives. As a change agent, the CIO should be involved in shaping the corporate vision.

Though the CIO and other staff members should share a common vision, as far as the growth of the company is concerned, “the vision should be upheld through activity,” Sussman noted.

Companies are adapting their management structures to support the belief that the idea behind a company (its image and its application) is what really counts. This means employing people who only care about a company’s image and business influence won’t cut it.

“People who work for ICT companies, in particular, want to form part of the idea of the business they work for,” said Sussman. “It works along the same principles of buying into a lifestyle, but instead of just reflecting the image, you actually live it.”

One of the CIO’s biggest challenges is deciding on and allocating scarce resources to get the job done. This often involves staff training, business process redesign and new hires.

Sussman said as leaders, CIOs must understand:

• Which skills will make or break the business
• Where those skilled individuals will come from
• How to keep these workers engaged and committed

Growing technical demands, new global business models, growth opportunities, shifting market requirements and new management practices amplify the need to retain and redeploy executives and staff members.

Companies are increasingly focussing on developing, maintaining and evolving their existing workforces to achieve their business goals, stay competitive and be global.

Gartner EXP 2007 Survey of CIOs found that improving the effectiveness of the enterprise workforce was a key business, societal or government trend impacting business in 2007.

Considering a shrinking global workforce will cause a shortage of skilled workers between the ages of 25 to 54 years for the next 25 years, talent management is becoming a key strategic imperative.

Acquiring new employees is expensive. Deloitte estimates that an average company in the United States (US) spends nearly 50 times more to acquire a $100 000 professional than it spends on training that individual once employed.

“Engaging and retaining talent is good business,” said Sussman. Companies with superior human-capital practices have shareholder returns that are three times higher than those that don’t. In addition, they have:

• Higher profit margins
• Increased sales
• Increased market share
• Greater net income per employee
• Lower costs
• Better asset utilisation
• Increased innovation

Research shows that less than 20% of employees across the globe are engaged in their work. In addition:

• One in five employees are so negative, they poison the workplace
• 80% of employees are ready to jump ship at the first sign of greener pastures
• 88% of employees leave their job for reasons other than money

Sussman highlighted the following factors that motivate people to stay with a company:

• Exciting, challenging and meaningful work
• Opportunities for career growth, learning and development
• Great people
• A ‘fair’ price for their work
• Good boss/manager
• Recognition, appreciation and respect
• Consistent interaction/engagement
• Benefits
• Great work environment or organisational culture
• Pride in the organisation, its mission, and its products and services

Sussman said it is worthwhile conducting ‘stay’ interviews with employees, which commonly ask:

• What about your job makes you want to jump out of bed in the morning?
• What makes you want to press the snooze alarm?
• If you won the lottery and resigned, what would you miss most?
• If you went back to a position in the past that you loved, what would it be? Why?
• What can I do to keep you?
• What would entice you away?

Initiative, creativity and passion are qualities that differentiate businesses. People will only bring these personal qualities to work, if the organisation earns it.

CIOs must show their passion and discover, encourage and inspire passion in others. “Connect people to a meaningful mission; because, when the thrill is gone, so are they,” said Sussman.

As a leader, the CIO is responsible for everything those who follow do, or fail to do. “No one will follow you if you don’t know where you are going. Worse yet, if you lead them to a place you should not go,” Sussman noted.