CIO's, Think Like a Business Executive

The one-two punch of digital technology and massive enterprise disruption has left many CIOs feeling as though they've been unexpectedly dropped into a war zone. What's more, there's a growing recognition that many of the tried-and-true systems and tools of the past are no longer completely effective in running IT and the business of today.

Like business executives, CIOs should actively manage their IT portfolio in a way that drives enterprise value and evaluate portfolio performance in terms that business leaders understand—value, risk, and time horizon to reward. CIOs who can combine this with agility and align the desired talent can reshape how they run the business of IT.
This means tying together disruptive technologies, including crowdsourcing, mobile only, big data and cloud.  Unfortunately, the current tools for managing risk and leveraging assets may not work in this new world,

Here's what business-based CIO thinking looks like and what IT leaders need to focus on:

• Valuation. Understand the quantitative and qualitative value the IT organization contributes to the business.

• Handicap. Grasp how the competitive landscape will likely evolve by more fully understanding product and technology roadmaps.

• Hedge. Develop a strategy to invest and divest technology and assets.

• Promotion. Build an IT brand that is respected, if not admired, within the organization.

• Talent brokering. Identify skill gaps and understand which capabilities the organization can develop internally and how to tap external talent.

• Agility. Balance nimbleness and responsiveness with architectural integrity.

A CIO must possess a complete technology inventory, have the means to evaluate the portfolio (including risk, value and strategic importance of each portfolio item), double down on winners and fold losers, and have direct line of sight to revenues.