From guardians of technology to suppliers of capability

Unfortunately I can’t take the credit for the title of this post which I have adapted from a tweet that came from the Ovum Congress 2012. The full tweet was “IT will change the emphasis from guardians of technology to suppliers of capability”. This reflects the impact that disruptive technologies, and in particular, cloud are having on enterprise technology and hence IT departments themselves.

This phrase resonated with me for two reasons. Firstly, as a CIO I have always believed that my role and that of the IT department should focus on more than just technology. One of my main objectives is therefore to ensure the organisation maximises the return it achieves from its investment in technology. This goes beyond the technical skill set required to the keep boxes and wires running; skills such as business and process analysis, solution design and enterprise architecture are needed in a more strategic, value-adding IT department that can work alongside the business to realise benefits.

To maximise return on investment the CIO and the IT department have to work with business units to identify the capabilities required to meet business goals. Some of these capabilities will be enabled by technology whilst some will need new skills, behaviours, processes, etc. within the business. And it’s important for the CIO to also help identify the non-technology changes that are required as without them the technology solutions will not generate the expected benefits. By working with business units in this way the CIO becomes well-placed to lead the wider transformation process, something I believe we are uniquely placed to do (see my previous post on Transformation and the CIO).

So, it has always been my view that the CIO and the IT department should be more than just “guardians of technology”. But with disruptive technologies and trends such as cloud computing and consumerisation the transition to “suppliers of capability” is getting a whole lot easier and faster. And this is the second reason why this phrase resonates with me; it captures perfectly the challenge facing CIOs and IT departments if they are to stay relevant in their organisations. This was the context in which the phrase was being used at the Ovum Congress, which this year was structured around the major disruptive trends.

IT departments will always have to act as their organisation’s guardians of technology to an extent. But in the future this will be achieved by selecting, integrating and managing appropriate services and not by procuring, installing, deploying and supporting servers and applications. This will see a further shift in the skills needed by in-house IT functions. If IT departments do not add the skills needed in a cloud-based, consumerised environment then they will be bypassed by the rest of the business. But if they do adapt then they will find themselves spending more time working alongside the rest of the business, supplying capabilities and adding real value to their organisations.

For those of us who believe that IT departments should be more than just a technical support function there has never been a better time to be a CIO. The disruptive trends are changing the business technology environment and with this comes opportunity for CIOs. Cloud in particular enables the CIO to move the discussion from infrastructure and applications, capital expenditure and lead-times to services that can be deployed quickly, and as an operating cost, to enable new capabilities.

However, to take this opportunity we need to engage with our C-level colleagues and lead the debate about how these disruptive trends can be used to add value to the organisation. This will ensure we move ourselves from being viewed purely as a guardian of technology to a supplier of capability.

Dear Mr Golden: CIOs are already business leaders

Bernard Golden, who is CEO of consulting firm HyperStratus, believes that CIOs don’t need to be business leaders. In a recent article published on a number of IT websites he argues in a rather simplistic way that if a CIO is a business leader then they can’t be a technology leader. There is so much wrong with this view and the flawed arguments used by Mr Golden to support his theory that it’s actually quite difficult to know where to start this post!

Firstly, let’s look at his main point: you can’t be both a business leader and a technology leader. Why not? The two are not mutually exclusive. CIOs are a talented bunch and are more than capable of understanding both. In fact, given the reach that technology has across the organisation there is probably no other role that understands both its own field and the broader business as the CIO role does. And Mr Golden’s suggestion that CIOs are not capable of mastering both without compromising their performance or contribution in one or other is quite frankly insulting to CIOs.

He supports this theory by stating that technical skills in IT management are becoming more important and that in the future “CIOs will need deep technical skills.” In fact, he argues, CEOs will expect their CIO to have deep technical knowledge and without it how can a CIO possibly manage the IT function, know what is right or where potential risks and weak points may be. Isn’t that what the rest of the IT department is for? The CIO builds a team of people and/or partners that have the detailed technical knowledge needed by the organisation. Yes, the CIO needs to have a good understanding of the technology and they need to be able to deep dive when necessary but they do not need a detailed understanding of how everything works.

It is old school thinking to believe that the CIO has to have all the answers; be able to spot the weakness in solutions that have been designed by technical specialists. This is why we have business analysts and architects, design processes with gateway reviews, test specialists, tools and processes, etc. The CIO has to make sure the proper skills, tools and processes are in place, not do the detailed reviews and testing themselves.

Mr Golden also states that “talking to the CEO in business language with which he or she is comfortable is a red herring.” If you re-read that sentence it just doesn’t make sense. Is he really advocating that CIOs do not use a language with which their CEO, or anyone else for that matter, is comfortable? So he wants CIOs to be deeply technical and for everyone else to have to learn how to communicate with the CIO? Yes, the CEO needs to understand technology given its importance, but it’s the CIO’s job to explain it in such a way that this understanding can be developed quickly when it is needed. And as with CIOs, CEOs need to be (and thankfully most are) capable of diving into the detail when necessary. But this doesn’t require deep technical knowledge.

If CIOs were to follow Mr Golden’s advice then they would soon find themselves pushed into the corporate backwater from where they have worked hard to emerge; being viewed purely as a technical specialist with little to contribute beyond their own discipline.

Thankfully the bad news for Mr Golden is that many CIOs are already business leaders and are playing a key role in the development and growth of their organisations by providing leadership beyond technology. Just take a look at the CIO100, compiled by CIO Magazine. The index is judged principally on transformation skills and achievement. The top 100 CIOs are not helping to transform their organisations by honing their detailed technical skills and ignoring the wider business. Leading business transformation requires a broad set of skills that goes beyond the technical. The top CIOs know this, have developed their wider business skills and have already made the transition from technology leaders to business and technology leaders.

And a final point: in the notes to the article it states that Wired.com recently named Mr Golden one of the Top 10 Cloud Influencers and Thought Leaders. My advice to him is to keep his head in the cloud.