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Best CIOs earn a seat on corporate management committees

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CIOL Bureau
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Hackett's research also identified several other key factors enabling CIOs to

improve strategic alignment. World-class CIOs are more than three times more

likely to report directly to their company's CEO or Chairman than typical CIOs.

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World-class IT organizations also hire managers and professional staff with

far greater business knowledge and a much higher percentage have advanced

degrees than at typical companies. Finally, world-class CIOs have completely

eliminated parts of their IT organizations that report locally, and drive

significantly higher levels of centralized reporting.

"One of the consistent themes we see in our research is that the SG&A

functions which perform the best are more closely aligned with the

business," said Hackett IT Practice Leader Doug Barta. "This is

particularly true in IT. World-class IT organizations go beyond supporting the

business at a basic level, helping identify and leverage competitive

opportunities.

"One fundamental way to ensure that IT is optimally aligned with goals

and objectives of the business is to have its most senior executive involved in

decision-making at the highest levels of the company," said Mr. Barta.

"There are few new initiatives in which technology does not play a critical

enabling role. But in many typical companies, since the CIO doesn't have a seat

at the senior management table, these initiatives are planned without adequate

input from the IT organization. The result is that the technology component is

flawed, costlier than envisioned or delivered late - any one of which can sink

an otherwise worthwhile new project."

According to Hackett Senior Business Advisor Scott Holland, "CIOs that

report to the CEO are much more likely to be a business executive with deep

operational, sales, or marketing experience. But at companies where the CIO

reports to the CFO, they are more likely to be focused on technical expertise,

maximum efficiency, and cost control. This doesn't put them in the best position

to drive strategic value."

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