Manage your CEO to attain business leadership

In a new report, "Improving the CEO's view of the CIO", analysts at

Gartner Executive Programs (EXP) conclude that while most chief executive

officers (CEOs) view their chief information officers (CIOs) as trusted

operational leaders, few CEOs regard their CIOs as business leaders -- despite

most CIOs' belief to the contrary.






This gap in perceived abilities limits the CIO's opportunity to deliver greater
value to the enterprise. In a recent Gartner survey of more than 450 non-IT

business managers, the IT leader was ranked next to last among eight senior

executive positions according to significance in setting strategic direction for

an enterprise. Last place went to the Human Resources leader.






Yet the new Gartner report shows that most CIOs have an opportunity to change
this situation, improve the relationship with their CEO, and create more value

for the enterprise by becoming less risk-averse and extending their role outside

traditional IT activities. In short, the potential exists for the age of the

operational CIO to be eclipsed soon with the CIO ascending to a more strategic

role.






Gartner analysts suggest three reasons for the often-strained relationship
between CEO and CIO. First, CEOs are overloaded and simply do not view IT as a

top priority. Marcus Blosch, Vice President and Research Director at Gartner

EXP, said the fundamental gap in how the role of IT is viewed by many senior

executives can inhibit business growth.






"All top business issues highlighted by CEOs are dependent on, if not
enabled by IT," Dr. Blosch said. "Considering IT as separate from

growth issues highlights a lack of understanding of IT's role in the enterprise.

The truth is that IT, and by default, the CIO, should underpin every one of the

top priorities that CEOs pointed out in our survey."






CEOs and CIOs also have very different perceptions of business priorities. In
2004, CEOs are focused on revenue and growth, yet most CIOs believe that

security, cost and privacy are the top three drivers on the business agenda.

This difference in focus limits the credibility of CIOs, often impeding their

ability to contribute at board level.

Gartner acknowledges that whilst it is imperative for CIOs to deliver on key

issues such as security, they must also recognize the importance of aligning and

engaging with the CXO agenda if they are to add real value to the organization.






Finally the Gartner study points to differences in CEO and CIO business styles
and behaviors. CEOs are more optimistic, evangelizing and idea generating,

whilst CIOs are more conservative, and focused on detail, implementation and

closure. Moreover, profiles of other CXOs are closer to that of the CEO. As a

result, the CIO often is perceived within the group as something of a 'naysayer'

with a focus on the operational and system complexities involved in enterprise

change. This can make CIO contributions seem out of step with the CEO, executive

committee or board, with the CIO often seen as lacking vision and dynamism.






According to Dave Aron, Research Director at Gartner EXP, "The challenge
for the CIO is to

move out of the IT space and their comfort zone to demonstrate deeper business

knowledge and leadership. In the words of one of the CEOs interviewed, the

'Super-CIO' needs to be 'bilingual' - able to communicate and engage with the

wider business organization as comfortably as with the IS organization."






A shift in CIO behavior







To make the most of the relationship with the CEO, the CIO must shift from

task- to relationship-oriented behavior, from management to leadership focus,

from relying on control to learning to influence and from drawing on an IT

knowledge base to drawing on a business knowledge base. Above all, Aron said,

"CIOs need to learn to take risks and feel comfortable operating outside

their area of expertise. It is only then that they can truly take on the

challenge of aspiring to real business leadership."






Four CEO-CIO relationships types







The most valuable CEO-CIO relationship is an evolving one. Gartner advises CIOs
to take one step at a time, building credibility while stimulating appetite for

movement to the next level. With this in mind, Gartner has identified four

CEO-CIO relationship types to help CIOs take stock of their current position and

plan accordingly.












q At-Risk:

where the CIO and IS are not delivering to the businesses needs, and CEO-CIO

engagement is around issue resolution.







q Transactional:

where the CIO has credibility as a service provider, and CEO-CIO engagement

centres on IS execution of the business strategy.







q Partnering:

where the CIO takes on some business initiatives, and is able to proactively

engage the CEO and senior business leaders on business strategy.







q Trusted-Ally:

where the CIO takes on significant business leadership roles, and co-creates

business strategy.






Gartner found that the majority of CEO-CIO relationships are at the
'transactional' stage where the CIO has operational credibility but

communication centres on confirming IT feasibility and checking delivery. The

survey revealed that the 'Trusted-Ally' relationship that many CIOs aspire to is

rare in today's business climate, with few CIOs currently engaged in significant

non-IT business-transformation projects.






Six CIO behaviors that can transform the CEO relationship







Gartner's latest research among CEOs and CIOs makes clear that their
relationships are not set in stone. In-depth interviews showed that a number of

CIOs are building a reputation for credibility while stimulating the need for a

more dynamic CEO-CIO partnership. Gartner analysts recommend a six-point action

plan for CIOs to follow whilst, of course, maintaining excellent service

delivery:












· Get

mentoring and coaching







· Make

time for relationship building







· Take

on non-IT responsibilities







· Build

the strength of your deputies







· Educate

yourself







· Educate

your stakeholders






Gartner's view on the future for the CIO remains positive. "The CEO's view
of the CIO is changing as enterprises become more reliant on IT," Aron

said. "I firmly believe that many CIOs can move toward a business

leadership role by effectively managing their relationships with CEOs and other

executive peers." Examples include former 'super-CIOs' such as Michael

Capellas, now chairman and chief executive of MCI, and Bob Martin in his time at

Wal-Mart, who proved that the move from an IT role to top business leadership

can be achieved.