Tag Archives: Digital Age

ESM

Three reasons why now is the right time for ESM

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Enterprise service management (ESM) is an organizational capability for holistically delivering business value and outcomes, based upon shared processes, appropriate technologies, increased collaboration, and better communication across the organization.[i]  ESM, done well, enables positive customer and employee experiences, improves business agility, and enables impactful digital transformation.

ESM is nothing new. ESM, as discussed as early as 2005, was characterized as simply extending IT service management (ITSM) practices across the organization. Since then, organizations have realized that ESM needs to be an enterprise capability and competency – not just the domain of a single department.

Effective ESM gets the entire organization on the same page. Good ESM practices reflect and support the entirety of enterprise value streams, not just the IT portions. This enables teams to have clarity around how work and value flows through the organization, and how technology underpins that workflow and enables value realization. And in the digital age, knowing how work and value flows through an enterprise provides the organization with the ability to quickly shift and react to changes in market spaces – critical for business success.

But herein lies a couple of challenges.

Many organizations are “process poor,” so there’s been little effort in defining and documenting processes, depicting how inputs are transformed into measurable outputs. Secondly, individual departments often operate in isolation or function as if they’re at least somewhat isolated from others within the organization. Organizational workflows and value streams are poorly understood, and if value streams are defined, those value stream definitions are often limited to a single department.

Three reasons why now is the right time for ESM

Why is now the right time for ESM?

  1. Digital age organizations can’t afford to have siloed departments working in isolation. Everyone within the organization must understand not only how their work contributes to success, but also the upstream and downstream impacts of their work. ESM facilitates this shared understanding of how work is done within an organization.
  2. Automation and AI adoption benefit from effective ESM. Generative AI (GenAI) could be used to generate and maintain knowledge across the organization. Capturing, generating, and maintaining knowledge is among the most tedious activities within an organization. Robotic Process Automation (RPA) and Intelligent Automation (IA) could result in improved customer experience and more resilient and efficient operations of customer-facing activities.[ii] Good ESM standardizes workflows that underpin enterprise value streams, enabling the capabilities of these and other emerging technologies.
  3. The world is mobile. Despite recent organizational return-to-work mandates, the work-from-anywhere genie is out of the bottle. And if the workforce is mobile, it only makes sense that the customers of an organization are also mobile. Both employees and customers expect a frictionless experience when interacting with systems and technologies. Again, good ESM underpins enterprise value streams and workflows that enable efficient and effective workflows and experiences for both employees and customers.

The opportunities are here – is your organization ready?

Today’s digitally driven, consumer-focused economy demands that organizations conduct business at digital speeds.  At the same time, organizations must deliver a differentiated customer experience over their competitors. And if that’s not enough, organizations must also ensure that risks have been optimized as both employees and customers interact with technology. Seems impossible, doesn’t it?

But that is what effective ESM can do for an organization. ESM, done well, results in increased operational efficiency, improved collaboration between departments, reduced costs, enhanced customer satisfaction, and the capability to adapt quickly to changing business needs. ESM helps enforce better governance and compliance. And improved service delivery resulting from good ESM enables a differentiated customer experience.

There are two critical success factors for ESM adoption.

First, implementing ESM usually involves significant changes to existing processes, roles, responsibilities, and workflows. Organizational change management becomes crucial to address resistance, communicate the benefits of ESM, and provide proper training and support to employees. Managing this organizational change effectively can pose a significant challenge. But the result will be having enabled and confident employees that are more engaged, more invested, and that have and deliver a better experience.

Effective ESM requires integrating data and systems from various departments and teams. This can be challenging due to disparate systems and legacy technologies within an organization. Ensuring smooth data and system integrations is crucial for effective ESM implementation. Taking an iterative approach provides the opportunity to “learn by doing” and realizing some quick wins, while at the same time, optimizing risk to the organization.

Get started with ESM

The sooner that organizations begin ESM adoption, the sooner the organization will realize the benefits of an integrated and responsive organization. Here are four suggestions for getting started with ESM.

  • Define your digital strategy. How will digital technologies enable the organization to achieve its mission, vision, and goals?
  • Make the business case. Document the reasons why the organization should adopt ESM. Define the specific objectives for ESM, including opportunities, benefits, financials, and risks.
  • Establish a guiding coalition. Having a group of committed people to guide, coordinate, and communicate ESM efforts is a critical early step for success.
  • Map value streams. Understanding how value moves through an organization is critical if an organization is going to elevate itself above siloed work and into true enterprise service management.

The differences between organizations that are internally siloed and those that are truly agile and integrated will only become more pronounced as technologies such as automation and AI become more mainstream in the world of digital organizations. Now is the time for ESM.

If your organization is struggling in its digital evolution, it is time to develop your digital strategy, map value streams, and adopt ESM – and we can help. Contact Tedder Consulting today to find out how.

[i] https://www.dougtedder.com/2021/02/01/esm-business-strategy

[ii] https://omdia.tech.informa.com/om019736/more-vendors-squeeze-into-the-intelligent-automation-space-as- enterprises-embrace-the-technology

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AI, EX

The more AI we become, the more human we need to be

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Why are AI assistants given human-like names?

Apple provides Siri[i]. Amazon has Alexa[ii]. Samsung features Bixby[iii]. And there are literally dozens of other examples, in use both publicly and privately.

The attribution of human characteristics to non-human entities is known as anthropomorphism. Attributing human intent to non-human entities, such as pets, robots, or other entities, is one way that people make sense of the behaviors and events that they encounter. We as humans are a social species with a brain that evolved to quickly process social information.[iv]

There are numerous examples of anthropomorphism with which we are familiar, and honestly, don’t even think twice about. In Toy Story[v], the toys can talk. In Animal Farm[vi], the animals overthrow their masters and govern themselves.  In Winnie-the-Pooh[vii], Christopher Robbin interacts with Winnie, a talking bear.

Is this why AI-enabled chatbots and digital assistants are given human-like names? To make us want to talk to them? To make it easy to interact with them? To influence our thinking and behaviors?

Without over psycho-analyzing the situation (and I am far from qualified to do so), the answer to the above questions is “yes”.

The good – and not so good – of today’s AI capabilities

AI capabilities have been around for quite some time. While philosophers and mathematicians began laying the groundwork for understanding human thought long ago[viii] , the advent of computers in the 1940s provided the technology needed to power AI. The Turing Test, introduced in 1950, provided a method for measuring a machine’s ability to exhibit behavior that is human-like. The term and field of “artificial intelligence”, coined by John McCarthy in 1956, soon followed.

The past few years have seen a dramatic expansion of AI capabilities, from machine learning to natural language processing to generative AI. That expansion has resulted in impactful and valuable capabilities for humans. AI is well-suited for managing tedious and repetitive tasks. AI can be used to initiate automated actions based on the detection of pre-defined conditions. AI can facilitate continual learning across an organization based on the data captured from interactions with and use of technology. And most recently, AI is developing a growing capability to respond to more complex queries and generating responses and prompts to aid humans in decision-making.

But despite all the progress with AI, there are some things that are not so good. Miscommunication can occur due to limitations of a chatbot or an AI assistant in understanding user intent or context. A simple example is the number of ways we as humans describe a “computer”, including “PC”, “laptop”, “monitor”, or “desktop” must be explicitly defined for an AI model to recognize the equivalence. AI is not able to exhibit empathy or the human touch, resulting in frustration, because humans feel that they are not being heard or understood.[ix]  AI is not able to handle complex situations or queries that require nuanced understanding; as a result, AI may provide a generic or irrelevant response.[x]  The quality of responses from AI is directly dependent upon the quality of the input data being used – and many organizations lack both the quality and quantity of data required by AI to provide the level of functionality expected by humans. Lastly, but perhaps most importantly, the expanding use and adoption of AI within organizations has resulted in fear and anxiety among employees regarding job loss.

Techniques that will help humanize AI

Several techniques can help organizations better design human interactions with AI. Here are a few to consider that can help humanize AI.

  • Employing design thinking techniques – Design thinking is an approach for designing solutions with the user in mind. A design thinking technique for understanding human experience is the use of prototypes, or early models of solutions, to evaluate a concept or process. Involving the people that will be interacting with AI through prototypes can identify any likes or encountered friction in the use of AI technology.
  • Mapping the customer journeys that (will) interact with AI – A customer journey map is a visual representation of a customer’s processes, needs, and perceptions throughout their interactions and relationship with an organization. It helps an organization understand the steps that customers take – both seen and unseen – when they interact with a business.[xi]  Using customer journey maps helps with developing the needed empathy with the customer’s experience by identify points of frustration and delight.
  • Thinking in terms of the experience – What is the experience that end-users need to have when interacting with AI? Starting AI adoption from this perspective provides the overarching direction for making the experience of interacting with AI more “human”.

Start here to make AI use more human

AI adoption presents exciting opportunities for increasing productivity and improving decision-making. But with any technology adoptions, there is the risk of providing humans with suboptimal experiences with AI. Here are three suggestions for enabling good human experiences with the use of AI.

  • Define AI strategy – Success with AI begins with a well-defined strategy that identifies how AI will enable achievement of business goals and objectives. But AI success is not just business success or technical success with AI models, but also whether users are happy with AI and perceive it to be a valid solution. [xii]
  • Map current customer journeys – Mapping current customer journeys may expose where user interactions are problematic and may benefit from the introduction of AI.
  • Start and continually monitor the experience – Happy Signals, an experience management platform for IT, states that “humans are the best sensors”.  Humans are working in technological environments that are in a constant state of change and evolution. Actively seeking out and acting upon feedback from humans regarding their experiences with technology raises awareness of the user experience and fosters a more human-centric approach to technology use and adoption.

The best way to ensure that AI-enabled technologies are more human is to design them with empathy. Design thinking, customer journey mapping, and experience management will help ensure that AI stays in touch with the “human” side.

Need help with customer journey mapping? Perhaps using design thinking techniques to develop solution-rich, human centered solutions for addressing challenges with customer and employee experience? We can help – contact Tedder Consulting for more information.

[i] “Siri” is a trademark of Apple, Inc.

[ii] “Alexa” is a trademark of Amazon.com, Inc. or its affiliates.

[iii] “Bixby” is a trademark of Samsung Electronics Co., Ltd.

[iv] https://www.psychologytoday.com/us/basics/anthropomorphism , retrieved March 2024.

[v] Lasseter, John. Toy Story. Buena Vista Pictures, 1995.

[vi] Orwell, George. Animal Farm. Collins Classics, 2021.

[vii] Milne, A.A., 1882-1956. Winnie-the-Pooh. E.P. Dutton & Co., 1926.

[viii] Wikipedia. “History of artificial intelligence”. Retrieved March 2024.

[ix] https://www.contactfusion.co.uk/the-challenges-of-using-ai-chatbots-problems-and-solutions-explored , retrieved March 2024.

[x] Ibid.

[xi] https://www.qualtrics.com/experience-management/customer/customer-journey-mapping  , retrieved March 2024.

[xii] Ganesan, Kavita. “The Business Case for AI: A Leader’s Guide to AI Strategies, Best Practices, & Real-World Applications”. Opinosis Analytics Publishing, 2022.

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ESM, ITSM

The Curious Case of the Missing IT Strategy

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IT organizations often get stuck in a vicious cycle of never-ending work. IT implements solution after solution, fixes one problem after another, and no matter how many times they do it, those solutions and fixes never seem to stick. IT often finds itself just trying to keep up with what appears to be a constantly changing business. IT is often seen as the anchor slowing business down and has earned a reputation of being the slowest path toward technology implementation.  And when budget times come around, IT never seems to manage to get its fair share. 

These are signs that an IT organization is missing strategy.  This is a massive problem for both IT and the organizations that IT works within. Why are so many IT organizations missing a strategy?  What can be done to establish a viable IT strategy?

One thing that is certain – the strategy can’t just be “do”.

The Missing IT Strategy

Of course, no leader intentionally avoids developing strategy. It’s usually a consequence of a number of factors. However, in the case of the missing IT strategy, the CIO has to establish a business-technology (not technology alone) strategy, talk and share that strategy with other leaders, incorporate and underpin the larger business strategy, and drive the IT organization forward following that strategy. If a CIO spends too much of their time doing or supervising the day-to-day work within an IT organization instead of delegating, she won’t have the time (or energy) to be strategic. If a CIO has to spend more time supervising the daily activities of IT than ensuring business outcomes and value, that’s usually an indicator of a missing IT strategy. 

The second indicator of a missing IT strategy is the lack of true service management. Why? Because if the service management foundation is not strong or well executed, IT can never be strategic. If IT ignores:

  • Defining services in terms of business value and outcomes
  • Creating workflows that are based on services, not technologies or organization charts
  • Publishing performance reports that are relevant to and meaningful for the business 

then IT is setting itself up for failure.  Many organizations look at service management as just something that a service desk does.  But good service management provides the capability of relating technology investments to business outcomes.  This makes good service management a critical part of the foundation of IT. Having a solid foundation is what keeps IT relevant, reliable, and able to scale to meet business needs. WIthout good service management, IT will waste a lot of time just trying to keep up with service requests and putting out fires instead of enabling the realization of business strategy.  

Finally, the third indicator of a missing IT strategy is a “one thing at a time” mentality. To stay on track, IT organizations often choose to focus on just one initiative at a time. This might help your team feel less overwhelmed, but it often comes with the cost of missing a holistic view of the organization. The ability to see the birds eye view of how the organization relies on technology to create better outcomes for end users and customers is one of the most important skills for an IT leader.  Having this big picture view enables the IT leader to be even more strategic.  

Why does IT need a strategy?

IT operating as only a support team is no longer an option for any business. The speed of business has increased significantly over the last decade, due in a large part to the introduction of new technologies, such as automation, mobile computing, cloud-based services and machine learning. IT has to be the driver and enabler of technology. Whether it’s realized or not, technology has become “baked into” every aspect of the organization. 

The question is “has IT become ‘baked in’ as well?”  Without a well-defined IT strategy, the answer to this question is usually “no”.   

Defining, socializing, and executing a strategy strengthens IT’s role within an organization. It’s what separates the IT organizations that are treated as order takers from the IT organizations that are treated as valued partners. 

How to solve the case of the missing IT strategy

Here are three things that IT leaders can do to solve the case of the missing IT strategy.

What is the business strategy?  How can technology enable realization of business strategy? To shift from a “support only” team to a strategic asset, IT first has to understand the goals and objectives of the overall organization – and how technology can be used to enable realization of those goals and objectives. IT’s strategy must be tied to these business goals and objectives. IT leaders have to take a step back from the inner workings, day-to-day activities of IT and look at the bigger picture of the organization. 

Elevate to real service management, not just some arbitrarily selected processes.  Once IT understands the role of technology in achieving business strategy, IT must then elevate its approach to service management.  Service management is more than just fulfilling requests and resolving outages. An effective approach for elevating service management is to identify and map the value streams of an organization, then identifying how technology underpins those value streams.  Value streams help identify the products and services that IT must deliver. This exercise not only lays out what service management must enable and deliver for the organization, it is also a great way to align what IT is doing to the overall needs of the business. 

Report IT performance in business terms. Once you’ve elevated your service management and understand the goals and objectives of the company, then you’ll be able to produce and publish performance reports that reflect how IT contributions enabled achievement of business goals and objectives.  Having this capability is significant for a number of reasons.  First, it demonstrates that IT truly understands what is important to the organization.  Secondly, it provides the ability to evaluate if IT strategy is meeting business needs.  And lastly, it begins to change the perception of IT as just being a “support team” to a strategic asset.

Thinking and working strategically is transformative for an IT organization. After you’ve seen how IT integrates with the rest of the organization, you won’t be able to go back to working only in a ‘support’ role.  By defining and executing an IT strategy , your entire business will become stronger.  

Need help developing an IT strategy that is aligned with your business objectives?  Let Tedder Consulting help!  Tedder Consulting will first visit your organization to understand your business, goals, and current IT situation.  Tedder Consulting will then conduct an analysis of your IT services and practices to determine how they are operating. Finally, we deliver a plan for aligning your technology strategy to your business goals.  For more information, contact Tedder Consulting today.

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Leadership

Is the CIO the Continual Improvement Officer?

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The CIO is often wearing many hats. They have to be tech whizzes and also strategic visionaries. And in my opinion, they now have to be the Continual Improvement Officer for their teams, their organizations, and in their careers.

Continual improvement is about improving the quality of products and services by learning from past successes and failures and making incremental changes over time. It helps IT align and realign its products, services, and activities to meet ever-changing business needs.  Continual improvement can be the key to large-scale growth. 

When done correctly, continual improvement can improve product and service quality, boost productivity and creativity, increase teamwork and create a competitive advantage. 

It sounds simple, doesn’t it? We should learn from the mistakes – and the successes –  we have. But, in a business environment, it’s never that simple. Why? Because many leaders don’t want to admit to mistakes. They don’t want to explore why things aren’t working as well as they should.  They settle for “good enough”.  They don’t want to examine what could be done better because they want to plunge ahead into that next project and hope that people forget about whatever mistakes were made or problems that were encountered. 

For continual improvement to have success, it has to be embedded into the culture of an organization. It has to be accepted – and driven – from the top-down so that everyone is empowered to look at failed initiatives and missed KPIs as learning and improvement opportunities. 

How can the CIO become the Continual Improvement Officer and build a culture that supports this?

Continual Improvement in IT

If a CIO wants to become the Continual Improvement Officer, she has to start with her own teams. One of the most important things a CIO can do then is allocate the time for continual improvement. IT is often (usually?) inundated with day-to-day work. They often are putting out fires or working to meet aggressive delivery deadlines and objectives. There is rarely-if ever- time for that “be back” work that inevitably comes up. 

It’s up to the CIO to ensure continual improvement becomes a standard mode of operation and allocate adequate time to address continual improvement. How? It could be frequent projects or sprints with an objective to reduce technical debt. Perhaps it is establishing a cadence of regular meetings or time to discuss and implement continual improvement initiatives.  Or it could be requiring that teams take the time to reflect on completed projects and initiatives and identify gaps, issues, and what could have been done differently. 

Make these efforts inclusive by encouraging team members to bring their ideas to the table — and then identify opportunities to implement those ideas. Companies with a strong culture of continual improvement implement about 80% of their employees’ improvement ideas, according to KaiNexus.  By implementing the improvement ideas from those that do the work establishes a mindset of continual improvement and encourages the team to identify and suggest further improvements.  It’s a win-win for both the team and the organization. 

Continual Improvement in the Rest of the Organization

IT is only one piece of the improvement puzzle though. To really build a culture of continual improvement, the CIO has to be the continual improvement champion within the rest of the organization and that requires communicating with and motivating other leaders. 

CIOs can share their own continual improvement learnings and lessons. CIOs must be open about the setbacks and the growth from continual improvement activities, and when able, connect how continual improvement enhanced another department’s initiatives. Invite other executives to your continual improvement meetings to demonstrate how building a culture of continual improvement within IT is working.  Offer to provide coaching and the expertise to help those leaders establish continual improvement efforts within their teams. 

Continual Improvement as a CIO

I think the CIO needs to be the Continual Improvement Officer because it will not only improve their organization, but it is a critical skillset and approach that will benefit the CIO’s career. 

Unfortunately, the CIO role has one of the highest turnover rates among the C-suite. According to TechTarget, the average CIO tenure hovers around 4 years. That means CIOs are frequently moving into new environments and navigating new work cultures. The best thing any CIO can do when they first step into a role is to bring an attitude of continual improvement.  Not just for the new organization, but for their own individual actions.

It’s a powerful move to reflect on what could have been done differently in a  past role as you move into a new role. This will help you embody the culture of continual improvement that you want your team to adapt as well. Be willing to address and share your own opportunities for improvement with your team as you begin implementing new initiatives.

What continual improvement successes have you had within your organization? What advice would you give to other leaders working toward a culture of continual improvement? Share your thoughts with me on LinkedIn! 

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Leadership

Are You Inviting Trouble? 7 Signs You’re Attracting Chaos to IT

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CIOs are no strangers to chaos. Working in IT means you’ve dealt with your fair share of chaotic moments. Technology has an annoying habit of not working properly – even when everything seems to be set up correctly. IT pros have had to learn to keep their cool when the tech just isn’t working — and the end user is feeling the frustration.

Being able to handle chaos is a skill every leader must develop. But long-term success working in a continual state of chaos can cause problems. Chaos can cause a surge of adrenaline and some people begin to subconsciously crave that adrenaline rush they feel from chaotic moments. When that happens, they may start to create situations that result in chaos and can cause those adrenaline rushes. The best example of this would be a student who consistently procrastinates on their assignments because they feel they “work better under pressure”.

Is it really possible that accomplished professionals and industry leaders can repeat the same mistakes that a college student would make? Absolutely! Stress naturally spikes cortisol levels, which is the built-in alarm system in your body. That spike in cortisol is not necessarily a bad thing. It’s our “fight or flight” instinct and it plays a number of roles in our body. Specifically, it boosts energy so you can handle stress and then will restore the balance afterward.

Many driven and ambitious people love that energy boost and thrive on the tension that a challenge creates. After all, meeting and overcoming those challenges is how they found success!

But if you find your IT organization in a constant state of chaos, it might be time to check in to see if you’re causing it and making more trouble than IT needs. Here are 7 signs you’re attracting chaos to your IT organization.

You’re working in a vacuum

Siloed thinking and poor communication habits can cause many problems for an IT organization. Many technologists do not focus on their communication or collaboration skills. In many organizations, IT has been seen as unwelcoming and isolated. When you tune out other departments and their needs and don’t include them in solution designs, you end up with workflows that aren’t followed, products that aren’t used to their fullest capabilities, and too many “last minute” requests that cause stress.

You don’t communicate in business terms

Learning to speak the language of the business is one of the most important things a CIO can do. Without describing – in business, not technical terms – how IT solutions fit in to business objectives, you’ll spend a lot of time and effort defending your initiatives, shifting initiatives at the last minute, and potentially working on initiatives that don’t contribute to needed business outcomes. Once you start mastering how IT and technology contribute to business objectives, you can position your initiatives in a better light, and this will decrease resistance from the C-suite.

You have shiny object syndrome

Everyone needs the newest, fastest, shiniest technology, right?! No, they don’t. Non-technologists and leaders in the C-suite might always be pushing you to invest in new technologies, in the belief that those technologies will instantly solve every business challenge. But without proper analysis of the challenge that needs to be solved, this mistaken belief in bright and shiny new technologies will only keep IT and the rest of the organization spinning in circles. You will experience the tension and challenge of continually deploying and training on new technologies – and be blamed when those new technologies don’t address the problem that needed solving. And you’ll spend a lot of money on tools that “don’t work”.

IT success isn’t clearly defined

How is IT success being defined? Often IT success is defined only as delivering projects on-time and within budget. But that definition ignores IT’s contributions to business objectives and the organization’s bottom line. By defining IT success in terms of business results and bottom-line impact, the CIO becomes a strategic leader in the company, and IT becomes a valued partner within the organization, not perceived as a necessary, but expensive, cost center. By failing to establish IT success measures in terms of organizational success, you’ll spend time and energy on hitting metrics that don’t properly elevate the CIO or IT.

Pushing change at the wrong pace

Accelerated timelines can be common in IT organizations – but are they realistic? CIOs are often operating under unrealistic expectations (see above) and therefore trying to force innovation without laying the proper groundwork. This can sometimes feel like running straight on into a brick wall and expecting it to topple over on the first try. You will quickly burnout and exit out if you push change at an unreasonable pace. Instead, CIOs need to set realistic expectations with the C-suite regarding the pace of change and establish realistic and achievable milestones to show that digital transformation is on its way.

You spend all your time putting out fires

Are you constantly involved in every little fire that comes up within IT? If you can’t rely on your team to handle the day-to-day fires that will always exist in IT so you can free up your time to focus on the bigger picture and strategic initiatives, then you are contributing to that chaos. I’m not saying that you should ignore those fires, but as CIO, you have to trust your team to handle the day-to-day work and provide coaching and support to get IT out of fire-fighting and into leading business innovation. Your time is better spent focused on solving the bigger business challenges within the organization.

You ignore the foundations of your IT organization

Foundations can be boring. They do not cause stress or any excitement when (if?) you think about them but having a strong IT foundation is absolutely necessary. The foundations of your IT organization include your workflows, processes, and value streams, and are what keep the wheels of IT turning, even during the chaos. If you ignore the steps it takes to keep your foundations optimized, you will continually get stuck in day-to-day fires and siloed communications which waste your time and your team’s talent.

Having a little bit of chaos can be a good thing. It can inspire innovation and create motivation but it’s a little bit like rainstorms. You want enough of it to keep things growing but you don’t want to live in it 24 hours a day, 7 days a week. As the CIO, you have the responsibility to balance having that healthy level of chaos in your organization while at the same time, be the calm in the storm. That tension and those cortisol spikes will still come — only this time, it will be because you’re working on bigger challenges that will have a larger impact on the success of your organization.

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Leadership

CEOs, are you making your CIO sick?

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Here’s a scenario that might sound familiar:

The CEO of a mid-sized organization calls in the CIO because times are desperate. The company needs to deploy new technology to increase revenue — quickly. The organization has already invested in a variety of tools and technology… but it’s not getting the job done. Now the CEO wants the CIO to find the right tool, the one that will help the organization, and it needs to be cheap and it needs to show results quickly. The CIO — who up until this point, has had little opportunity, much less been invited, to interact with other departments to identify needs and pain points with the current toolset. In fact, beyond any initial training and implementation of the current tools, the CIO has been relegated to sitting on the sidelines. But the CEO is convinced that new technology is the answer, and expects the CIO to get it done to get the organization back into the black … and the clock is ticking.

Scenarios similar to this one happen all the time in organizations. The pressure is constantly on the CIO, but she is often not enabled to be proactive or even part of the larger conversations with the business.

For CIOs, it often feels like they’re being given a teaspoon of gas and asked to get the company through the end of the cross-country road trip. They’re being asked enormous tasks with little budget or agency over previous decisions. They’re damned if they do — and damned if they don’t.

And this happens over and over! The CIO constantly jumps through hoops… only to land and then have to run back around to jump through it all over again. It’s no wonder that CIO position has one of the highest turnover rates among the C-suite, with an average tenure of just 4 years, according to TechTarget.

The relationship between the CIO and CEO has been fraught in the past and unfortunately in some organizations, that hasn’t improved. Even as the CIO becomes more influential and valued within the organization, many CEOs are still stressing out their CIOs!

For many organizations, there’s a gap in what the CEO expects and what the CIOs need to be able to deliver on those expectations. The CEO is the one with the power to bridge the gap. Let’s address those CEO expectations and how CEOs can give CIOs what they need to meet them.

CEO Expectations and CIO Needs

CEO Expectation: Business perspective.
The CEO expects the CIO to be the bridge between technology and the rest of the company. The CIO needs to look ahead and align technical benefit with the initiatives of the company and tailoring systems to meet business needs. This is absolutely critical for success in any business. Every business needs to use technology to its fullest potential and the CIO is the only person who can ensure that is happening. If the CIO and CEO are unable to fully enable the organization with technology, the organization is at risk of losing business to the competition.

CIO Need: Business enablement
In order for the CIO to have a business perspective, the CEO needs to recognize the role the CIO and IT play in business enablement. The CEO must ensure that their CIO is part of developing business strategies and plans. The CIO’s voice in business matters should be just as important as the voices of other leadership roles. That means the CIO has to be involved from the beginning of strategy conversations, instead of at the end of them.

CEO Expectation: Leadership
CEOs expect CIOs to be self-starters. The CIO needs to be able to motivate their teams and get buy-in from the rest of the organization. Because they often work closely with other members of the organization, the CIO needs to be viewed as an influential member of the organization who can lead the way.

CIO Need: Sponsorship
The CEO can strengthen the CIO’s credibility with peers by providing strategic support. Whether it’s inviting CIOs to strategic meetings or voicing their support of a CIO’s decision, the CEO can help the CIO attain the needed credibility to influence the organization. The CEO can also help the CIO form partnerships with external partners by starting introductions or including the CIO in communications.

CEO Expectation: Vision
The CIOs need to see the big picture of the business. CEOs want CIOs to be visionaries who are constantly moving toward the future vision of the business. The CIO has to buy-in to the CEOs vision and help the CEO turn the vision into a reality.

CIO Need: Vision and Strategic Consistency
However, for the CIO to become this visionary, the CEO needs to formally articulate the vision and mission for the company. The CIO will need to interpret how that vision fits into technology strategy, but that vision has to start from the top. Additionally, the CIO needs consistency and clarity in that vision. If the vision or strategy is constantly changing, the CIO won’t be able to create systems or initiatives to sustain it.

CEO Expectation: Innovation
Turning any vision into reality needs an innovative leader. The CIO should be on the cutting edge of all the trends and continually looking for new and better ways to leverage technology to propel the business. But the CIO also needs to be able to balance innovation and risk. She has to be able to explain the cost trade-offs with every innovative initiative.

CIO Need: Challenge
If the CEO wants an innovative CIO, they need to give the CIO those opportunities to be innovative. Challenge the CIO to use her talents on things that matter to the bottom line of the business. Don’t use her as a task rabbit who can simply pull the business over the finish line. Incorporate their expertise at the start of business challenges.

CEO Expectation: ROI
Finally, the CEO expects — and needs — the CIO to enhance ROI margins and profits. The CIO must contribute to the bottom line these days. Technology is inextricably linked to the success of any business today, so the CIO has to think in terms of ROI.

CIO Needs: Flexibility
The CIO can contribute to ROI, but she needs the CEO to understand the challenges of deploying and managing technology – at least at a high level. The CEO needs to give the CIO the chance to explain the complexities and challenges they face and demystify the technology. Then they need to allow them the flexibility to develop different approaches to solving problems. The CEO needs to understand that some IT investments take time to deliver their full potential value and allow the CIO that space to ensure that value is delivered.

In Conclusion

Now, I don’t think CEOs should give CIOs any kind of “favored status” or special accommodations within the C-suite. The CIO doesn’t need to have her hand held, but CEOs do need to consider the impact of their own actions when they review how the CIO is operating. If there is high turnover in the CIO role, perhaps the first place to look is to determine if there are gaps between the CEO expectations and the CIO needs.

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Digital Transformation, ESM, Leadership

Are You Wasting Last Year’s Success?

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2020 was a historic year for CIOs. Before last year, there had never been a point when nearly every CIO had to completely restructure how their organization did business in just a matter of days — or even a few hours. But that’s what happened thanks to COVID-19.

Seemingly overnight, CIOs turned their organizations into remote companies. Some CIOs were able to accelerate their organization’s digital transformation efforts by years.

It was a tremendous effort, but many CIOs were up to the task – and it resulted in positive changes. According to the 2020 Harvey Nash/KPMG CIO Survey, 61% of 4,200 IT leaders reported that the pandemic has permanently increased the influence of technology within the organization.

However, the job of a CIO isn’t over after this win. No one should be sitting back and relaxing because of this success. Now, I’m not saying that any CIOs are simply sitting pretty, just basking in the success of last spring. But it is easy to slip back into a world of managing the daily fires within IT and lose sight of the larger business.

The organization is going to expect more now from the CIO than ever before. Now that the rest of the organization knows the difference a good CIO can make, they are going to want one that is innovative, proactive, and continuing to work for the bigger picture of business success.

Don’t get lost in the day-to-day management of IT and let the successes of 2020 go to waste.

Are you wasting last year’s success?

Here are some things to check to determine if you’re wasting last year’s success:

You haven’t reviewed what you implemented in 2020 to check for gaps.

This is not to take away the accomplishments of IT. The swift change to remote work was an incredible undertaking and if you knocked it out of the park, then you should feel proud of that success. However, that transition was likely rushed and lots of organizations implemented band-aid solutions. No one had any idea that we would still be dealing with the fallout of COVID-19 almost a year after the initial shutdown. It’s entirely possible the solution you implemented was never meant to be a long-term solution. Now’s the time to review those solutions and determine if they’re meeting the needs of your company today. You should also ensure that these solutions match the current business strategy. Did your organization pivot how they deliver value to the customer? Is remote work becoming a permanent part of your organization? How has your company shifted since the original shutdown last March?

You may find that parts of your remote work solutions simply aren’t meeting the needs of your organization anymore. You may need to revisit technology investments or redesign workflows to better fit the current goals and reality of your organization.

You’re ignoring foundational issues in workflows and service delivery.

Remote work is not easy, especially since many team members are working from home with their families and children. Have you addressed the workflows inside and outside of IT since the beginning of the pandemic? And what about service delivery? Have you surveyed colleagues to ensure their technology needs are being met? Workflows naturally shift over time, and with so much upheaval, there is no doubt that work has shifted and that value might not be reaching the end-user. Get an up-to-date view of your workflows to make sure they’re still delivering.

You’re not involved with the customer experience.

If IT has not been brought into the customer experience yet, your organization is already falling behind. 2020 completely changed how products and services are delivered and used by customers and technology played a huge role in that change. One of the many lessons that 2020 taught us was that CIOs and IT have to play a role in creating and managing the customer experience. So if customer experience hasn’t made its way to your “to do” list, it’s time to prioritize that.

You’re not involved in the employee experience.

Much like the customer experience, the employee experience quickly evolved in 2020. IT has always played a chief role in employee experience, but it’s more vital now. Many organizations are working remotely or operating in a hybrid remote/traditional office model. As I mentioned earlier, employees are under a lot of pressure as many are juggling working from home with their personal responsibilities, like managing virtual schooling or sharing home office spaces with their partners and roommates. CIOs and HR must work together to monitor how employees are operating and if they are receiving everything they need to do their jobs now.

You’re not actively engaging with the rest of the organization.

A true leader is not someone who hides out in their office or only deals with their team. For CIOs to maintain the status they achieved during the early days of the pandemic, they must actively engage with every department in the organization. IT is unique in that it is a cross-departmental organization. IT works with every other department within the organization to help them achieve their goals. CIOs must become more of a presence everywhere — and yes, even remotely. If you haven’t met with other department leaders and gotten up to date on their goals and challenges for 2021, it’s time to book some meetings on the calendar.

How to Capitalize on Last Year’s Success

If any of the above scenarios sound familiar to you, it’s ok! The CIO role is evolving and that takes some level of adjustment. But you want to act now if you want to capitalize on last year’s success. Here are some small steps you can take to get started.

Leverage what worked and previous successes.

Continual improvement is even more important right now. Most organizations are in the midst of change and to keep that change positive, you want to leverage the things that worked for you in 2020. Review your wins from 2020 and see how you can either enhance those wins with better service delivery, tightened workflows, or additional technology. Small wins like this can add up.

Look at where there are gaps in service.

As I already mentioned, some solutions implemented last spring were not meant to be long-term – and that’s okay. But now is the time to address it. Instead of thinking of these changes as huge overhauls or that you’re starting from scratch, they can simply be enhancements in your workflow or service delivery. The good news is that you did so much of the heavy lifting last spring when you originally made the switch to remote work.

Communicate and engage with other business leaders.

You earned their respect in 2020. Now it’s time to earn their trust. Other leaders in the business will be more open and inviting to you if you demonstrate that your goal is to help them achieve their goals. No other leader wants to feel like they have to be forced into IT’s workflows or that IT is trying to control their access to tools and technology. You have to prove that IT has moved past being the “Department of No” by being a collaborative partner who works towards the same goals. Start building these relationships one by one and you will create support for any future IT initiative.

I don’t want to diminish the success that IT leaders achieved in 2020. Like I said at the start of this article, 2020 was a banner year. Every CIO had to step up to the plate. But it’s important to check that you’re still taking steps to optimize services and leverage all your success from last year. My hope is that 2020 was just the beginning and that every CIO can keep innovating and playing a vital role in business decisions.

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ESM

ESM is the Business Strategy Every CIO Needs

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As organizations continue to work through a pandemic, adapt to an ever-increasing digital world, and adjust to new customer and employee expectations, CIOs must continue to step up to the plate to help navigate these changes from a business perspective.

Perhaps with some organizations, CIOs have not been part of business decisions in the past. The pandemic has shown that organizations can have success when working with IT as a business partner. The reliance on technology and new remote work expectations have paved the path for CIOs into the role of business success partner. Smart CIOs are taking advantage of the opportunity by presenting a strategy that can help the business holistically — not just the technology aspects within the business.

And that strategy is Enterprise Service Management.

What is Enterprise Service Management?

Enterprise service management, also known as ESM, is an organizational capability for holistically delivering business value and outcomes-based upon shared processes, appropriate technology, increased collaboration, and better communication across the organization, not just within IT. ESM, done well, provides a strong foundation for a positive customer experience, positive employee experience, and digital transformation.

Before we dig further into what ESM is, let’s talk about what it is not. ESM is not just about extending ITSM into enterprise. This is not about IT barging in and forcing its workflows on the rest of the organization. It’s not just deploying instances of IT’s service desk tool across the organization. ESM is focused on leveraging the best practices of service management across the organization holistically to co-create business value for the enterprise.

What effective Enterprise Service Management does is get the entire organization on the same page. ESM processes reflect and support the entirety of value streams, not just the IT portions. This enables teams to have clarity around how work and value flows through the organization, and how technology underpins workflow and value. And in the digital age, knowing how work and value flows through an organization provides the ability to quickly shift and react to changes in market spaces and is critical for business success.

Why is ESM a business strategy?

The biggest misconception about service management is that it’s just something that is done only in IT. Service management has always been about delivering real business value and measurable outcomes for organizations. While service management is often associated with IT, many are often surprised to realize that service management is also being practiced in other parts of the organization, such as HR, customer service, and facilities. What effective ESM does is help organizations connect these often-disjointed pockets of service management together, creating a better working environment and improved results. That is especially important in our current world.

The way we do business now has drastically changed. Remote work has become more of the norm. We may have thought 2020 was the year of remote work but actually, it’s just the beginning. The percentage of workers permanently working from home is expected to double in 2021. Many organizations are creating hybrid models for working, allowing for both work from home and remote work opportunities. Forbes reports that by 2025, an estimated 70% of the workforce will be working remotely at least 5 days a month.

This divide in working conditions and how work is being completed will impact the efficiency of the enterprise. There are plenty of benefits to operating with remote and hybrid models, but enterprises also have a higher risk of creating silos. This isn’t a technology issue, it’s a business issue – and it’s one that ESM can solve.

When enterprises commit to and implement ESM, the result is enhanced visibility regarding how value flows through the organization. This makes it easier to identify problem areas, simplify workflows, and clarify expectations and roles. Over the long term, this will increase efficiency across the organization, which means decreased costs and possibly increased revenue.

As we said earlier ESM is not just extending ITSM across the enterprise. This should not be seen as a hostile takeover by IT. The goal is to leverage IT’s service management expertise to improve overall performance across the organization. In order for that to happen, the CIO and IT have to lead the way in establishing ESM as a must-have strategy in the organization.

ESM does incorporate principles of good ITSM, and the CIO and IT should know the best practices and mistakes to avoid when implementing service management. This is an opportunity for IT to demonstrate leadership based on their past experiences working with ITSM. By showing the rest of the organization real-world examples of how service management has improved collaboration and made work more effective and efficient in IT, IT can make the case for how ESM can improve the enterprise’s workflows as well.

The CIO and IT can make their case even stronger because IT are one of the few departments that interacts with every other department every day. IT understands the workflows of other departments because it helped design and implement solutions that support those workflows. Using this knowledge, the CIO can present use cases for ESM using actual workflows and initiatives from across the organization as examples.

The trick here is to understand the overall business goals and how the goals of the individual departments contribute to those overall goals. This especially applies to the CIO. If a CIO can demonstrate how ESM helps link departmental goals to enterprise goals, and makes it easier to accomplish both goals, they can convince other organizational leaders to rally around the idea of ESM.

How to Start Implementing ESM

ESM implementation is the opportunity for CIOs to exhibit their business savvy while delivering a solution that helps the organization work in a more holistic fashion. But there will be those who resist ESM and will need to be convinced. You need three things for a compelling argument.

Make sure the IT house is in order

If IT is not running efficiently or doesn’t have its service management house in order, no one will be convinced that ESM is the right move. Before taking service management out into the enterprise, make sure that IT’s workflows are running like a well-oiled machine and that there are no gaps in services, support, delivery, or communication. The successful use of service management within IT makes for a stronger use case for adopting ESM across the enterprise.

Collaborate with Other Leaders

As we discussed earlier, you have to rally the troops around ESM before it can be properly implemented within your organization. Start by having conversations with other organizational leaders about their 2021 goals, their challenges, and their needs. That’s the best place to start the conversation, because you need other leaders to see the “what’s in it for them”. If you can illustrate how ESM not only helps individual departments meet goals, but also link those achievements to organizational goals, they’ll be more likely to support your case for ESM.

Develop the Business Case

Finally, after you’ve ensured that IT service management practices are in order, and gained support from other department leaders, you’re ready to develop the business case for ESM.

When developing the ESM business case, focus on the five factors of value — improved productivity, competitive differentiation, improved customer satisfaction, decreased cost, and increased revenue. Link the anticipated outcomes from ESM to one or more of these factors, and you increase the chance that you’ll receive full support and funding for ESM.

Looking for more support on implementing ESM initiatives in your enterprise? Book a free consultation! I can help you develop a plan for bringing ESM to your organization.

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Leadership

The Opportunity of Failed IT Plans

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What went wrong in 2020?

I know, it’s a big question and most people would probably say “Everything.” Or at least, many CIOs would confess that the original strategic plans they had for 2020 were not executed.

There were many initiatives that just failed to get off the ground in 2020 due to COVID-19.

Now that 2020 is winding down — what happens to those initiatives? Should you try to execute on them in 2021? Are they even still valuable to your organization? Will you still have the capital for them? How can you afford them?

Smart CIOs know they can’t carry on as normal. Just because something was on the plan for 2020 doesn’t mean it should continue to be on it for 2021. Yes, strategic projects are still strategic, but it’s time to address whether the strategy has changed. If it has, the CIO has to know how to protect IT’s budget while shifting initiatives.

This is where the opportunity of a failed plan presents itself and where innovative CIOs can reset their priorities, align themselves with the rest of the organization, and ensure budget protection for 2021.

Revisit Your Organization’s Existing Strategic Plan

First, it’s important to understand what impact COVID-19 has had on your organization. This means more than just a workforce that is now working remotely. How did it impact the way your business operates and delivers value to customers? Did business models change? Did you add any new capabilities that are still contributing to ROI?

Now look at your existing IT strategic plan. Does it incorporate the changes made because of the impact of COVID-19?

It’s possible you could have some major changes to make to the IT strategic plan. For example, if your organization has added new revenue streams, then you may need to completely change the strategic plan to incorporate those new streams.

Look for Opportunities in your Value Streams

As you review what has changed in your organizations, you should also be identifying the opportunities for IT inside of this new strategy.

This exercise is best if you know the value streams in your organization (whether they are brand new as a result of COVID or they were already in place). If you don’t know the value streams of your organization, then now is the time to map them along with other members of the executive teams.

Remember, this is a chance for meaningful, impactful change. It’s no longer “business as usual.” We can’t say “Well this is the way it’s always been done” because organizations have proven they are capable of agility and making big changes quickly. When mapping value streams and looking for opportunities, don’t be afraid to open up to possibilities that might have seemed impossible a year ago. After all, most people would have said taking an organization completely remote in 48 hours would have been impossible this time last year but by now, most IT organizations have accomplished exactly that!

Fix any Value Leaks

Now, after you’ve reviewed value streams and are fired up about the new strategic projects you could bring to the organization in 2021, there’s a big question to answer: Where do you find the budget for it?

Some IT organizations were fortunate enough to have larger budgets this year while they enabled remote working — but those checkbooks won’t be as open in 2021.

Here’s what you can do right now to protect your budget in 2021

Look for the value leaks in your organization. Value leakage is a common problem in every organization but few leaders know to look for it. Businesses don’t operate on a consistent basis every single day. Value leaks can occur when changes in business workflows aren’t reflected in technology workflows, or people weren’t trained on new products or features, or when services or products aren’t retired appropriately. Value leaks occur due to poor communications, or when the organization fails to fully understand the costs and risks of any change, no matter how slight it may seem. If no one is monitoring value streams and measuring how value is delivered, then value will start getting dropped along the way.

In the context of protecting the budget for 2021, you can start finding and addressing the value leaks that are happening right now in 2020. When you start to fix the leaks, you can prove to the organization that you’re creating more value. The more value you bring to the table, the more you can justify your future budget and protect the budget for those bigger strategic projects you identify when mapping your value streams.

The Key is the Big Picture

The most important thing any CIO can do to seize the opportunity of failed plans is to not lose sight of the bigger picture. 2020 didn’t go to plan for anyone and every organization experienced shifts that will impact future strategies.

Your strategic projects from 2020 might still make sense in 2021. Or they might not. What’s important now is to look at how the organization delivers value to its customers and the opportunities for IT to enable and co-create that value. Then look at how IT can create even more value by fixing existing value leaks.

I think everyone will say that 2020 changed everything. But only the most innovative CIOs will be able to say that 2020 changed everything in the best way possible.

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Digital Transformation

Can the CIO Save The Day?

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This year has been a banner year for IT. It’s only because of IT that so many organizations could continue operating in the face of the pandemic. IT has done its job on winning over the rest of the organization and most of the organizations now know they can count on IT. According to the 2020 Harvey Nash/KPMG CIO Survey, 61% of the 4,200 IT leaders surveyed said that the pandemic has permanently increased the influence of the technology leader. So how can the CIO and IT leverage this new-found influence? How can IT become more than the team that keeps the lights on? 

I think that this new influence can help the CIO become the most valuable player on the leadership team because they’re the glue that keeps everything together.

Now, some may argue that the CIO has been thought of only as leading a support team for decades. So they could not in fact be the glue holding an organization together. But that was before the technology boom. Today, technology is a foundational component for every business. From communication to employee experience to the customer journey, technology plays an important role in every piece of every business. As the impact of technology has grown, so must the role of IT. While IT and the CIO used to only solve technology issues, they now must solve business issues because the business needs technology. 

That’s why the CIO has the opportunity that no other executive does. No other executive can impact another department as much as the CIO can.  

This is, of course, a force that can be used for good – or evil. The CIO can be the bottleneck, holding back every initiative due to poor service or inefficient workflows. But they can also be the hero of the organization: playing an integral,difference-making role in every initiative.

John Bruno, Chief Information Officer at Aon, explains that the CIO role can become “an integrator – someone that works across the entire organization.”  

So what can a CIO do begin breaking down the silos and helping other departments?

 

  1. Get out of IT and into other departments.

The biggest problem so many CIOs have is that they can’t see the forest through the trees. Or to put it in more blunt terms, they can’t overcome the IT fire-fights that come up every day to actually get out of IT to see what’s happening in the rest of the organization. It is absolutely imperative that today’s CIOs do this. If you don’t feel that you can see beyond IT issues, then you’re not going to be able to support the organization as you need to because CIOs have to be the integrator. They have to be the ones to connect the dots and it’s impossible to do without collaborating with other executives and understanding what is occurring in their departments. 

What would happen if you as the CIO were able to take 2-3 hours a week to meet with other executives to understand their initiatives – and how IT can help make those initiatives successful? What would it cost you? If your IT organization were to implode because the CIO took 2-3 hours every week to work with other departments rather than help put out IT fires, then your approach to service management needs attention. The right service management workflows and foundation ensure that IT runs smoothly and is able to serve the organization, while the CIO works to innovate other areas of the organization. If you’re struggling to even find the time to work with other departments and trust that your IT team can keep running, it’s time to clean up your service management. Book a consultation with me and we can discuss how to get started.

 

  1. Identify the impact of technology in other department initiatives 

As I said earlier, technology is the thread that ties everything together and as the CIO, you hold the thread. You should be actively looking for ways to enhance other department initiatives with technology. 

In the old days of IT, many CIOs would roll their eyes at the idea of making more work for themselves by collaborating with other departments. But today, the innovative CIO knows that it’s not about making more work for IT. It’s about unlocking opportunities for IT to step up and play a more influential role in the organization. 

That means that CIOs have to get comfortable offering suggestions and solutions to other executives. Imagine what would happen if a CIO offered to support the head of HR in automating and digitizing the employee onboarding process. Imagine HR and IT co-creating that solution together, instead of HR assuming what technology they needed or IT forcing a solution upon HR without even understanding the complexity of the problem. 

Instead of a forced solution where neither side is happy, everyone would walk away with a collaborative outcome that improved the business overall.

And this isn’t just an HR opportunity. The CIO could do this for every other department.  Because you as the CIO are the expert in technology, you can offer your expertise to every area of the organization. 

 

How to Get Started

First, before you start working with any other department, you need to be certain that IT can operate efficiently. That means optimizing workflows and identifying any gaps in your service delivery. You can’t offer value to anyone else without first cleaning up your own department. (And if you need help, that’s my specialty! Book a consultation here.)

Once you’ve done that, begin forming partnerships with other executives. Invite them to ongoing meetings to learn about their initiatives and technology needs. If you approach this partnership as an opportunity for their department to achieve their initiatives faster and with less resistance from IT, then they are going to be onboard with working with you. 

Slowly but surely, you can begin to work with every department in this manner and before you know it, the CIO has not only elevated the status of IT but also the entire organization. 

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