Why the CIO must be the CEO’s business partner

The role of International Olympic Committee As IT occupies a central position in the company’s digital transformation, it is experiencing rapid development. But it is time to enter the next stage, which is to fix a position on the board. There is still a lot to do.

of Harvey Nash/KPMG CIO survey For example, in 2019, it was found that the proportion of CIOs on the board of directors had fallen from 71% to 58% in the past two years. Many IT managers still report infrastructure and product purchases to the CFO, but the approach needs to be changed.

The board’s priorities are changing

the study CIO status in 2019 IDG pointed out that 78% of CIOs said they communicate with business leaders more than ever before. This is a positive trend that shows how CIOs can participate in strategic conversations about the future direction of the business. This turning point must have been caused by changes in the board’s agenda, which now includes strategic discussions on technology, digital transformation and cybersecurity. With their skills, CIOs are qualified to lead the company’s technological future. Although the background of this figure is technology, it is clear that today’s IT managers must have a clear vision for the business and make decisions that actively support the growth of the organization. And competitiveness.

Coping with risks

The focus of the board discussion is risk. This is also an area where CIOs can make real contributions and can help C-level personnel better understand and manage risks. The cloud is a good example. One day, the CIO of a large Italian bank contacted us to resolve the risks associated with his company’s cloud. In fact, the bank’s board only viewed the cloud as a risk, but did not see possible opportunities. In this situation, the CIO plays a central role in clarifying and explaining the benefits and opportunities of technology to the board. The chef information officer must be the bridge between IT and business.

The CIO must be the CEO’s business partner

Nowadays, many CIOs in every industry, especially CIOs who report to the CFO, are striving to develop innovative initiatives and activities, and these initiatives and activities often inevitably lead to conflicts with budget issues. The CIO must align with the CEO’s digital agenda and be involved in discussions about new products, strategic investments, and how technology can promote business development. Incredibly, once the benefits of the project are understood, more budget may be allocated. Choosing to focus on how the technology will enable and grow the business will enable the CIO to have a seat on the board and develop from the previous back-office role.

Evolution of the International Olympic Committee

What does CIO need to achieve this level of strategic participation? Changes in ideas, behavior, and language. CIOs must start speaking business language by abandoning purely technical methods, but must explain the cost/benefit ratio well.

Only in this way can the CIO win the trust and have a place on the board of directors, so as to develop his company in an increasingly decisive way in the digital transformation.