Strategic Information Technology

Successfully navigate the changing face of the CIO role

Strategic Information Technology offers CIOs a handbook for engaging with the senior management conversations surrounding strategy. The CIO role is currently undergoing a massive transition from technology-focused expert to a more strategic mindset, and this book provides proven methods for taking your seat at the table. Lessons from high-performing CIOs and a wealth of leading-edge insight provide invaluable guidance for positioning technology as a strategic driver across the business, while a focus on building the necessary connections—for example, an alliance between IT and HR—provide a multimodal approach to navigating the transition.

The evolution of the CIO’s role involves more than simply technical knowledge; the new CIO must be an influencer, an engager, and just as adept at the soft skills that become increasingly crucial as you climb the management ladder. It’s about changing mindsets, translating hard skills into strategic advantages, and demonstrating IT’s value to the strategic decision making process. This book provides best practices, illustrative examples, and up-to-date perspective for CIOs wanting to:

• Position IT as a critical driver of overall strategy
• Build on functional expertise with strategic insight
• Learn from the stories of successful tech-to-strategy transformations

• Engage C-Suite peers in shaping the strategic conversation

Not long ago, the CIO occupied a unique place in the C-Suite. Executive by title, CIOs have nevertheless been seen as predominantly the “chief tech expert” with little input into strategy, as IT has historically been regarded as a tool rather than a source of competitive advantage. The truth is becoming increasingly apparent, with companies around the world turning to technology in order to gain a competitive edge, and CIOs are beginning to claim their place in strategy discussions. Strategic Information Technology offers much needed guidance for a successful transformation.

Foreword xi

Preface xiii

Acknowledgments xix

CHAPTER 1 The CIO Dilemma 1

Business Integration 2

Security 2

Data Analytics 3

Legal Exposure 3

Cost Containment 3

Some History 4

The Challenge 5

The New Paradigm 6

Consumerization of Technology: The Next Paradigm Shift 7

The End of Planning 8

The CIO in the Organizational Context 9

IT: A View from the CEO 14

CHAPTER 2 IT Drivers and Supporters 19

Drivers and Supporters 19

Drivers: A Closer Look from the CIO 23

Supporters: Managing with Efficiency 23

IT: A Driver or a Supporter? 24

Technological Dynamism 25

Responsive Organizational Dynamism 26

IT Organization Communications with ‘‘Others’’ 31

Movement of Traditional IT Staff 31

Technology Business Cycle 33

Information Technology Roles and Responsibilities 38

Conclusion 39

CHAPTER 3 The Strategic Advocacy Mindset 41

What Is Strategic Advocacy? 41

A Political Economy Framework for Contextualizing Strategic Advocacy 44

Strategic Thinking: A Particular Kind of Mindset 47

Political Savvy as the Underpinning of Effective Strategic Advocacy 56

Conclusion 62

CHAPTER 4 Real-World Case Studies 67

BP: Dana Deasy, Global CIO 68

Merck & Co.: Chris Scalet, Senior Vice President and CIO 70

Covance: John Repko, CIO 71

Cushman & Wakefield: Craig Cuyar, CIO 73

Prudential: Barbara Koster, SVP and CIO 75

Procter & Gamble: Filippo Passerini, Group President and CIO 76

Cushman & Wakefield: A View from Another Perspective 77

Conclusion 83

CHAPTER 5 Patterns of a Strategically Effective CIO 87

Personal Attributes 87

Organization Philosophy 100

Conclusion 114

CHAPTER 6 Lessons Learned and Best Practices 117

Five Pillars to CIO Success—Lessons Learned 117

The CIO or Chief IT Executive 120

Chief Executive Officer 134

Middle Management 145

Conclusion 150

CHAPTER 7 Implications for Personal Development 159

Rationale for a Self-Directed Learning Process of Personal Development 160

Adopting a Developmental Action Inquiry Process for Both Strategic Insight and Mindset Awareness 162

Testing One’s ‘‘Business‘‘ Acumen 165

Thinking Holistically in Terms of Situational Analysis and Synthesis of the Organization’s Position 167

Developing Strategic Mindsets Within the Technology Function 171

The Balanced Scorecard 172

Conclusion 176

CHAPTER 8 Digital Transformation and Business Strategy 179

Introduction 179

Requirements Without User Input 184

The S-Curve and Digital Transformation 187

Organizational Change and the S-Curve 189

Communities of Practice 190

The Technology Leader Role in the Digital Era 190

Technology Disruption on Firms and Industries 191

Critical Components of ‘‘Digital‘‘ Organization 193

How to Assimilate Digital Technology 194

Conclusion 196

CHAPTER 9 Integrating Gen Y Talent 197

Introduction 197

Employment in the Digital Economy 199

Attributes of Gen Y Employees 200

Benefits of Gen Y Employees 201

Integration of Gen Y with Baby Boomers and Gen X 201

Designing the Digital Enterprise 202

Gen Y Talent from Underserved Populations 203

Langer Workforce Maturity Arc 204

Implications for New Pathways for Digital Talent 210

Global Implications for Sources of Talent 212

Conclusion 212

CHAPTER 10 Creating a Cyber Security Culture 215

Introduction 215

History 215

Presenting to the Board 217

Designing a Cyber Security Culture 217

Dealing with Compromise 218

Cyber Security and Responsive Organizational Dynamism 218

Cyber Strategic Integration 219

Cyber Cultural Assimilation 220

Summary 221

Organizational Learning and Cyber-Minded Application Development 222

Risk and Cyber Security 222

Risk Responsibility 223

Cyber and Driver/Supporter Theory 225

CHAPTER 11 The Non-IT CIO of the Future 227

Driver-Side Responsibilities—New Automation 227

Conclusion 242

CHAPTER 12 Conclusion: New Directions for the CIO of the Future 245

Bibliography 261

About the authors 267

Index 269

ARTHUR M. LANGER, EdD, is the Professor of Professional Practice, Director for the Center for Technology Management, and the Academic Director of the Master of Science Programs in Technology Management at Columbia University. He is also an affiliated faculty member in the Department of Organization and Leadership at the Graduate School of Education (Teachers College).

LYLE YORKS, EdD, is Professor in the Department of Organization and Leadership, Teachers College, Columbia University, where he teaches courses in strategy development as learning process, strategic human resource development, strategic information technology and research.

Now in its second, revised edition, Strategic Information Technology offers a guide to the strategy advocacy practices that technology leaders can adopt in order to raise their profile within organizations. The authors—noted experts on the topic—explore the process through which IT leaders can build on their functional expertise and draw on tactical insight and key practices to cultivate strategic relationships with other senior executives.

The authors put the focus on the shift in mindset that is needed in order for technology executives to take their rightful place in the C-Suite as a respected strategic colleague. The book is filled with real-world stories from world-class organizations of successful CIOs. Their stories clearly show how these IT leaders learned the winning approaches for getting technology positioned as a strategic driver across business platforms.

Strategic Information Technology explores the challenges that can occur when positioning technology as a strategic business leader and reveals how these challenges can be resolved. The authors also explain the steps to take to develop the capacity and integrate the necessary practices to strategically position technology within an organization.

The second edition contains information on the effects of the digital global economy on the ways in which organizations need to respond to consumer products and services. It also offers insight and suggestions for integrating Generation Y employees into an organization in order to accelerate competitive advantage. In addition, the second edition explores the vital topic of creating a cyber security culture to protect companies from ever- escalating outside attacks. Strategic Information Technology is filled with the best practices and proven approaches that can redefine your role as CIO from a technology-focused expert to a strategic business partner.

Praise for STRATEGIC INFORMATION TECHNOLOGY

"Digital disruption is happening at an incredible rate and affecting every industry. Langer and Yorks lay out the key strategic leadership approaches for CIOs to lead their enterprises. Must read for current and future CIOs and Digital Leaders." —Steve Bandrowczak, President and COO, Xerox

"Langer and Yorks have provided a Second Edition that addresses the key strategic challenges of digital disruption, cybersecurity, and business integration facing all technology executives today." —Warren Kudman, CIO, Turner Construction

BECOME A CIO THAT IS A STRATEGIC ADVOCATE FOR INTEGRATING TECHNOLOGY INTO BUSINESS MODELS

"Langer and Yorks definition of the successful technology leader in Strategic IT is 'spot on' and a must read for CIOs that are planning how they will emerge as leaders in a digital-based society." —From the Foreword by Nicholas Donofrio, IBM Fellow Emeritus & EVP Innovation and Technology (Ret.), NMD Consulting, LLC, Executive in Residence, Columbia University Center for Technology Management

Thoroughly revised and updated, the Second Edition of Strategic Information Technology contains the case studies, valuable lessons, and best practices from technology and digital leaders at high-profile organizations. Written by Arthur M. Langer and Lyle Yorks (two acclaimed experts in the field) this important volume clearly shows what it takes to become a transformative technology leader and develop the skills and practices needed in order to gain technology's rightful position as a strategic driver within an organization.