Strategic Alignment: The CIO's Key Deliverable?
Roy Kane MBS
Innovative technology strategist collaborating with C-suite, driving business evolution for value creation
It’s fair to say that there is no need for an IT function without a business and equally, in today’s world there is little chance of success without IT.
As one hand washes the other so it is the same with IT and business. Alignment of Strategic IT and the Business Strategy is at the core of every effective tech leader and It’s widely acknowledged that CIO’s primary role is to align how IT interfaces with the business and drive value through technology investments.
Effective CIO's acknowledge the distinction between Operational and Strategic IT. Operational IT comprises of the day to day activities such as support, infrastructure and network architecture; the nuts and bolts of IT that we all take for granted though they are the pillars on which to build upon. Strategic IT comprises of core application development in line with business processes and the IT strategy that underpins the overarching business strategy.
Companies which achieve alignment and cultural harmony are then primed toward competitive advantage through improved efficiency, convenience and the ability to deliver better customer service.
This is of course is the optimum end state and an extremely complex process to achieve although not insurmountable largely due to the fact that in today's world IT is so deeply embedded within the business model.
With that in mind it's worth considering the following steps in view of achieving the optimum model.
- Identify and prioritise business pain and approaches to pain relief in line with the organisation's strategic directives and in agreement with business stakeholders.
- Focus on business models and processes before focusing on technology infrastructure or applications.
- Champion governance throughout the service catalogue in both Operational and Strategic IT.
- Provide transparent insight into technology initiatives and communicate often with predictable & reliable cadence in business terms that key stakeholders will understand.
- Lead the IT function professionally and cost-effectively through negotiated service-level agreements (SLAs) and measurement best practices.
Ensuring all members of the IT function have a clear understanding of the business model seems obvious. Knowing your business, its place in its sector, the corporate culture that underpins it, and how the people within it should operate in conjunction with how the IT plan to fits in place is crucial to achieving optimal alignment of IT which is a key deliverable of the CIO.
Results-oriented Leader | Problem Solver | Team Builder
5 年Great article, Roy.? I'll be using this moving forward.
Director Clarion Consulting Limited (Project Management Practice)
8 年Hi Roy – agree with the other comments, good article. I think that the points 1 to 5 are great guiding principles for ensuring that IT is both supporting and enabling the business. One addition point I would make in that in addition to the guiding principles it is critical for IT to have a defined, documented and communicated IT Strategy in place. Research continues to show that ‘Business Leaders’ remain dissatisfied with & sceptical of, ITs ability to understand, meet and deliver against the Business’ needs. having an effective IT Strategy, aligned with the Business Strategy, in place (encompassing appropriate guiding principles) results in significant increases in business satisfaction and increases both the profile and influence of IT in the organisation.
Well done Roy - great article. Point 3 on governance, and the correct governance and stakeholder buy-in is key in my mind.
Corporate Sales Director at Ekco - Managed Services | Cloud | Infrastructure | ICT Security
8 年Enjoyed the article. Well done and looking forward to many more.
MD, Diageo Irish Brand Homes. Guinness Storehouse, Guinness Open Gate Brewery, Roe & Co Whiskey Distillery. Our Purpose is Celebrating Life, Everyday, Everywhere
8 年Roy. Great first publication which makes a whole lot of sense. I'm looking forward to further articles and thoughts on this balance and need of IT and general strategic intent.