How CIOs Earn a Seat at the Executive Table

We constantly hear the question from CIOs – “Why don’t I have a place at the executive table?” The simple answer is – “you don’t deserve it!” Of course, this really isn’t a simple question, so the answer will be much more complex. But, as CIOs, we have to quit whining about what we’re not being given and go out and earn what we think we deserve. As a CIO who does have a place at the table and reports to the CEO, let me share my opinion on what our profession needs to work on.

First, think about what got you to your position. For a good percentage of us, it was a number of years working in the function. Large ERP projects, infrastructure overhauls, and the like run in our veins. Time spent managing a budget and staff was usually an unwelcome exercise. So, while we may have been great project managers or technologists, we didn’t usually run the IT function as a business unit would run. Some in large corporations even sought and received funding for projects with no clear ROI. While the technologists may support you, the business often looks at you as an outsider.

So, what’s the solution? If you are a technologist, I recommend that you work to get in a position outside of IT to gain some business credibility. I was fortunate to enough to have had the chance to work as a Financial Controller in a foreign joint venture after I completed my MBA. It was incredible how much this helped my career. It was like I had learned the secret handshake of the business managers.

Wait! You still don’t get a seat at the table. There are a number of areas that we have to work on to win/earn that overall credibility. I am a member of the CIO Executive Council. I think they have a very good framework that focuses on the Future-State CIO. There are three steps in that evolution: 1) Functional Head, 2) Transformational Leader, and 3) Business Strategist. I will use that framework to focus on the areas I have found critical to building and earning the trust of the executive team.

1) Functional Head

The first area to work on is the easiest. A good functional head understands more than just the technical components that make up their area. They are recognized for several things: managing their team, running the function as a business, and developing a strategy that is comprehensible by the larger organization. These are fundamental management skills, not nice-to-have additions to deep technical knowledge. In this new millennial generation, personnel management is valued more than it was in the past. A group that is seen as managed well is a good sign of leadership. Running the function as a business is seen as a real differentiator from the old IT model where techno-mumble could translate into funding. It may work to get the money, but it generates a great deal of resentment from the people you are trying to impress. Developing a comprehensible strategy also demonstrates the ability to translate your expertise into business success.

2) Transformational Leader

Once you’ve proven you can run your area like a business, impacting the overall company and transforming processes and systems is the next step. This requires you to make fundamental changes to the IT organization and your thinking. Assuming you can’t grow your budget to make this happen, you have to be able to reduce your utility spending to focus on the areas that really impact the business – business analysis and process improvement. Fortunately, new technologies like SaaS, IaaS, etc are making it possible to leverage lower spend for often enhanced functionality. This is often a difficult transformation in legacy IT groups – organizations and managers don’t want to transform. But, the ability to work closely with the business partners and implement serious change are required for transformational leadership.

Additionally, you can’t just sit back and wait for the business to come to you. The only person who regularly comes to your office without an invitation is the janitor. You have to get out of your comfort zone and start the conversation with the people you want to work with. Drop your guard, listen, and don’t filter everything through the lens of what you have in house today to solve problems. Technologists who listen can bring a great deal to the table. And, most importantly, don’t think that because your systems support most groups that you know more about their business than they do. I actually had a CIO that I worked for say that to a business leader. That ended their relationship.

If you are really seen as an enabler and transformational leader, you are much closer to having a seat at the table. By now, you are working with a variety of leaders – Supply Chain, Sales, Product Design and Manufacturing as well as Finance. If you only work closely with the CFO, you may end up reporting to him. Bringing the larger experience base to the role will allow the senior leader (CEO/President) to see that you are contributing across the organization.

3) Business Strategist

The final stage in the CIO evolution, according to the CIO Executive Council, is Business Strategist. My personal opinion is that this role is only truly available in certain organizations. If you sell some service through technology, you should really strive for this role. If you are in manufacturing, the goal should be to enable the business to operate as effectively and efficiently as possible. Whether this is a business strategist or transformational leader, the effect is the same. In either case, you have proven the ability to work with the rest of the business (you won’t be seen as an outsider at that point) to move the company toward becoming a more profitable, stronger enterprise. You won’t have to ask to be given a place at the table -- you will be asked to join.