JANUARY 2015E-PAPER

The New CIO Mindset: 6 Things Every CIO Should

Do NowIn the past, IT executives spent a lot of time

on internal technology and staffing needs, but to succeed today, you must focus more

on business and customer needs. Addressing six key areas can help you take your company — and

your career — to the next level.

The phrase “chief information officer” was first used in 1980 by bank executive William Synott. He

explained, “The job of chief information officer (CIO), equal in rank to chief executive and chief financial officers, does not exist today, but the CIO will identify, collect, and manage information as a resource, set corporate information policy, and affect all office and distributed systems.”1

Many of Synott’s predictions about the duties of the CIO have come true, but it is still rare for a CIO to be seen as the equal of the CEO and CFO. However, that may be changing.

Today, trends like mobil-ity, cloud computing, software-defined data centers, the Internet of Things, and big data are reshaping the CIO posi-tion and bringing more importance to it. Com-panies need CIOs who understand their customers and business operations as well as they understand technology. They

need gifted leaders who can transform the IT department from the group that maintains the hardware and software into a highly valu-able service provider that drives business innovation.

To thrive in this new environment, CIOs will need a new mindset. Addressing six key areas can help you make the necessary changes in your team and yourself.

1. Increase Collaboration with Other Business LeadersIn InformationWeek’s 2014 IT Perceptions

Survey, respondents were asked to name the single biggest thing

that would improve the IT department’s value to the

business. The number one answer, cited by 25% of IT staff and 30% of non-IT staff, was “work-ing more closely with

business units.”2

Collaborating is so important, in part, because

non-IT managers are control-ling more technology spending.

Line-of-business buyers now fund 61% of IT projects, according to IDC.3

The good news is that in a 2014 CIO study, CIOs said they were spending as much as 25% of their time building relationships with other business leaders.4 Still, less than half of CIOs surveyed by Deloitte said that they were seen as strong partners to the busi-ness.5 For many CIOs, the most important thing on next year’s to-do list is to work more closely with other company leaders.

Action items:• Meet face-to-face. Make a list of the most

important business leaders in your orga-nization and schedule times to meet with each of them weekly, monthly, or quarterly, as appropriate.

• Stay in touch. Between meetings, com-municate electronically with key business leaders regularly.

• Make collaboration a priority. Investigate and recommend technologies that will make it easier to work together, and make sure you’re using an effective collaboration solution to increase partnering between IT and key departments.

UBM TECH •• THE NEW CIO MINDSET: 6 THINGS EVERY CIO SHOULD DO NOW

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25%of IT pros say

“working more closely with business units” is

the best way to improve IT’s value to the

business. – InformationWeek

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UBM TECH •• THE NEW CIO MINDSET: 6 THINGS EVERY CIO SHOULD DO NOW

• Show up and be an advocate. Use inter-nal blogs or social networks to share your team’s plans and successes with the rest of the company.

2. Increase Your Access to the Executive SuiteSeveral studies have shown that CIOs who report to the CEO enjoy larger IT budgets and greater support for their projects. In addi-tion, CIOs who report to the CEO were much more likely to be seen as “game-changers”

than as a “cost center,” according to CIO’s “State of the CIO 2014” study.6

Today, 44% of CIOs report to the CEO, up from 39% in 2013, according to the same report. However, CIOs still have work to do.

Deloitte found that slightly more than 40% of CIOs said they have a good relation-ship with the CEO, even though 79% said this relationship was very important.7 And a recent EY survey found that only 17% of CIOs have a position on the executive lead-ership team, and nearly 40% said that a lack of executive support was one of the biggest barriers to success.8

Action Items:• Improve your “soft skills.” Consider

executive coaching or leadership training to improve your management abilities and people skills. In the EY survey, 37% of CIOs strongly agreed that they need to improve their communication skills.

• Hit the books. Increase your business management expertise by taking online classes, obtaining a traditional MBA degree, or reading up on the subject.

• Make C-level friends. Build your

relationships with other C-level executives by taking every opportunity to engage them in conversation both inside and out-side of work. If relationship building isn’t one of your core strengths, take a look at the classic How to Win Friends and Influ-ence People by Dale Carnegie.

• Push for inclusion. Speak up and make a case to be included in executive-level discussions about corporate strategy and tactics, not just discussions about IT budgets.

3. Focus on Customer NeedsIn InformationWeek’s “2014 Strategic CIO Priorities” report, only 40% of senior IT lead-ers said their departments were effective at helping the business understand customers, and only 44% said that their organizations were effective at using technology innova-tions to build closer ties to customers.9 In the same survey, 39% of CIOs said they regularly visit customers. That’s up from 23% in 2013, but there’s still plenty of room for improvement.

Similarly, 55% of IT leaders told Deloitte that relationships with customers were very

Percentage of CIOsWho Regularly VisitCustomers

Data: InformationWeek, “2014 Strategic CIO Priorities,”April 2, 2014

2013 2014

23%

39%

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UBM TECH •• THE NEW CIO MINDSET: 6 THINGS EVERY CIO SHOULD DO NOW

important, but only 16% said they have very good relationships with customers.10

Action Items:• Listen to your customers. Increase your

knowledge of external customers’ needs by sitting in on sales and customer service calls.

• Crunch the numbers. Use data and ana-lytics tools to gain insights into customer needs and behavior.

• Find solutions. Investigate and recom-mend technologies that could improve your company’s interactions with customers.

• Create new products. Develop technol-ogy-related products, applications, and services for your customers.

4. Set the Tone for a Changing Culture in ITTrends like mobility and cloud computing have dramatically changed enterprise work-ers’ expectations of IT. To deal with the new reality, forward-thinking CIOs are working to transform their departments into groups that can deliver IT-as-a-service (ITaaS).

A VMware study found that companies with ITaaS “generate greater incremental

revenues, respond faster to the needs of the business, reduce developer and oper-ations costs, and garner more of the enterprise budget than their less-mature peers.”11

But making the cultural changes necessary for ITaaS can be extraordi-narily difficult. According to the CIO study, nearly half of CIOs said they have difficulty getting their staff to be more focused on customers and business needs.

Action Items:• Communicate more. Talk with your team

regularly about your vision for IT. • Become a blogger. Increase your visibility

and improve morale by creating a monthly or quarterly blog, video blog, or newsletter where you discuss the company’s IT strategy.

• Set an example. A group often takes on the characteristics of its leader. Model desirable attitudes and behavior if you want to change your department’s culture.

• Pay for training. Budget for professional

development opportunities so that staff can develop the skills they need for

the changing environment. • Recognize excellence.

Praise and reward staff members who exemplify the desired mindset and behaviors.

5. Keep Current on Technology Trends

In the next year, mobility, cloud computing, big data, analytics,

social technology, and the Internet of Things will grow in importance, IDC analysts predict.12 Industry watchers also say that soft-ware-defined data centers, 3D printing, smart machines, digital assistants, Web-scale IT, and other trends could play a role over the next five years. Make sure you’re taking appropriate steps to take advantage of new opportunities these technologies might offer your company.

Action Items:• Read the news. Skim industry publica-

tions and websites to stay abreast of the latest trends.

The most

successful CIOs are those who unite

business acumen and customer knowledge

with technological expertise.

• Talk to suppliers. Meet with key vendors on a quarterly basis to discuss innovations that could benefit your organization.

• Make time for sales pitches. Make time to talk with a promising new vendor at least once a month.

• Ask for input. Solicit recommendations from IT team members. Sponsor a compe-tition and consider offering prizes for the best suggestions.

• Get out more. Attend conferences. Be a panel member. Speak at events. Engage in CIO-centric online communities.

6. Don’t Neglect Work-Life BalanceAs their role becomes more important within the company, many CIOs also experience increasing stress levels. Make sure you’re taking the steps necessary to keep yourself

physically — and mentally — healthy.

Action items:• Take a vacation. A break often makes you

more productive at work. Make sure you use your time off and other benefits that your company provides.

• “Unplug.” An hour or two — or even an entire day — away from your phone and computer can help you feel more relaxed and recharge your creativity.

• Family matters. Spend time each day focusing on your spouse, children, pets, or other family members.

• Maintain your health. When you’re stressed, it’s easy to eat the wrong foods, skip exer-cise, and put off doctor’s visits. However, making healthy living a priority can help you better manage your stress level.

• Do what you love. Pursue a hobby, charity work, or other interest outside of work.

The days when the CIO could focus pri-marily on the IT department and technology are fading away. Today, the most successful CIOs are those who unite business acumen and customer knowledge with technological expertise. There’s never been a more excit-ing — or a more challenging — time to be a CIO. By preparing now, you can position yourself and your company for greater suc-cess in a changing environment.

1. CIO Insight, “The Changing Role of the CIO,” April 5, 2005.2. Jonathan Feldman, “IT’s Reputation: What the Data Says,” InformationWeek, Sept. 2, 2014.3. Gerry Murray, Kathleen Schwab, “The LOB Buyer Becomes the Key to Revenue Growth: Insights From the 2014 Buyer Experience Study,” IDC web conference abstract, October 2014.4. Kim S. Nash, “The State of the CIO 2014: The Great Schism,” CIO, Jan. 1, 2014.5. Deloitte, “The Deloitte CIO Survey 2014,” 2014.6. Kim S. Nash.7. Deloitte.8. EY, “The DNA of the CIO: Opening the Door to the C-Suite,” 2014.9. Chris Murphy, “2014 Strategic CIO Priorities,” Information-Week, April 2, 2014.10. Deloitte.11. VMware, “IT Evolution: Today and Tomorrow,” August 2013.12. IDC Press Release, “IDC Predicts the 3rd Platform Will Bring Innovation, Growth, and Disruption Across All Industries in 2015,” Dec. 2, 2014.

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