A chief executive avoids detail. Other staff absorb business data, sift the most relevant facts, and present these to the company’s board. The chief executive’s role is to make decisions based on the facts and the board’s advice.
This approach to management has a proven history of success. But according to recent surveys, there’s a problem.
Many chief executives are uncomfortable about the fast-moving nature and jargon of IT. They fail to grasp the importance of technology in the decision-making process.
IT Growth And the Effect on Business
Consultants stress the adverse effect this attitude has on business. Technology moves at such a fast pace, and offers such significant opportunities, a chief executive who ignores it is courting disaster.
In addition, IT services have vital roles within business strategy and objectives. Chief executives who don’t recognise this aren’t providing a comprehensive leadership role.
Cloud-Based Services
One valuable IT service is cloud computing. Increasingly, businesses rely on third parties such as cloud or managed services for IT provision.
With cloud computing, businesses cut costs, increase flexibility and gain immediate access to the latest technology. The return on investment is worth serious consideration.
Chief executives aren’t necessarily aware of these benefits. A lack of understanding taints their attitude to cloud computing and other technologies such as social media and the Web.
Role of the Chief Information Officer
Things are changing, however. Some chief executives are becoming aware of the need to embrace IT for the sake of their businesses. The decision-making process for IT is becoming a common part of the agenda. But in keeping with their working methods, chief executives don’t want to become embroiled in too much detail.
This is where a new breed of chief information officers (CIOs) comes in. Company CIOs have responsibility for raising IT issues with chief executives and boards. Having done so, many CIOs now encourage chief executives to champion IT. This contrasts with the former practice of leaving IT departments to promote technology.
CIOs are also pointing out the value of IT throughout an organisation. HR, recruitment, sales and customer service can use computer services to make improvements.
CIOs have a new job priority: to manage information and process business assets. The appointment of CIOs reflects this change of approach. About a third of CIOs now come from operational rather than technology backgrounds.
This brings us back to chief executives. CIOs study the operational benefits of IT and present the facts. In this way, chief executives can avoid detail and jargon, and have essential IT knowledge to hand. This knowledge can help build businesses and increase profits.
