effective it leadership

1 Litcom ‘Delivering results oriented IT solutions’

THE CHALLENGE

Today’s IT leaders face countless challenges in their day to day environment.

Resources and budgets are limited. Technology evolves at a faster pace than

business requirements. Security threats continue to rise.

Added to these challenges, IT leaders are expected to deliver

high quality of services with fewer resources and smaller

timelines. They must allocate limited IT resources in ways

that create value for their organizations and support future

business growth. They continuously search for better ways to

identify, measure and communicate IT value to the organization.

The goal of IT leaders is to deliver greater IT value that drives business success

while attempting to increase shareholder value and decrease operating risk. In a

nutshell, today’s CIOs must be business leaders, not just technology leaders and

be able to communicate technology issues into comprehensive and useful

business terms.

The role of IT leaders has never been more challenging.

So, what are the requirements necessary to overcome some of these challenges

and become a truly effective IT leader?

EFFECTIVE IT

LEADERSHIP 8 ESSENTIAL METHODS THAT DELIVER RESULTS


OUR PURPOSE

This white paper is geared towards IT leaders, or CIOs of small, medium and large

sized organizations (note that we use the terms ‘IT leaders’ and ‘CIOs’

interchangeably throughout this paper). Recognizing the various challenges that

today’s IT leaders are facing, this paper identifies 8 essential leadership methods

that can assist IT leaders to effectively and successfully guide their organizations.

We offer points of consideration to the current challenges that IT leaders are

facing, and provide tips to help IT leaders face these challenges. While there are

many different skills and strategies, ways and styles to effective IT leadership, we

focus on the ones we feel are the most powerful and can deliver the best results.

In addition, we recognize that successful leadership is also a product of an

individual’s skill, qualifications and personality traits.


ONE: CREATE EFFECTIVE TEAMS

As a leader in your organization, some of your

responsibilities extend to attracting, cultivating, and

conserving talent (human resource management). In

today’s economy structure, the responsibilities to seek and

administer talent reach well beyond the conventional

boundaries of the company to include vendors, consultants,

business partners, and all the various outsourcers that IT

depends upon. Successful IT leaders know the importance of building a team that

has depth as well as skill in critical areas. Building a good team enables a CIO to

position IT to help an organization achieve its goals and objectives.

8 ESSENTIAL LEADERSHIP METHODS THAT DELIVER RESULTS

A few points to consider

• Competition. IT leaders are competing for talent with cloud providers, IT

vendors and other corporate IT shops.

• Shortage of talent. There’s a limited supply of IT professionals who possess

valuable and specific skills that meet today’s technology needs (e.g.

networking, IT security, applications development and database management).

In fact, 75% of CIOs say it’s challenging to find skilled professionals today.

(Source, Robert Half Technology, survey of 1,400 CIOs, 2012).


Some Tips

Third party involvement. Consider hiring the services of recruitment agencies

that specialize in the IT field and are familiar with the skills and requirements that

potential candidates must have.

Get involved. Polish your assessment skills by volunteering to help your HR

department screen job applicants. Offer to train or mentor new employees to

enhance coaching skills. CIO involvement during the interview process also

suggests the importance of the position to the potential candidate as well as the

value of the position for the organization.

Craft your message. Don’t forget the importance of a positive and impactful ad.

Describe the exciting environment, the rewards, and the learning experience.

Make sure that your ad is carefully assembled and describes the specific skills and

requirements of the ideal candidate. You don’t want to receive 500 resume

submissions that are not geared towards the specific skills and requirements you

advertised for.

Go for free talent. Hire an intern. Interns tend to be young and fresh out of

school. They are likely to be in tune with new technologies. They are also eager to

gain experience and learn new skills. Many colleges and universities have

postings geared towards interns.

Looking forward

Preserve your talent pool. Meet with your team on a

regular basis. Connect with them by setting up forums

where you can listen and questions can be posed by your

team and discussions can occur. Don’t forget to spend time

to carefully and continuously communicate your vision and

key expectations.


TWO: DESIGN AN IT STRATEGY

Most organizations have a detailed business strategy which

acts as a guide to business decisions. An IT strategy is the

structure which ensures that the money being spent on IT

by the organization is being used to further its strategic

goals. Your IT strategy organizes all the elements of your IT

function including infrastructure, organization and

application/data strategies. Don’t forget that effective governance is also

important as it helps to align business with IT strategies. An effective IT strategy

should help an IT leader to prioritize investments as well as provide

understanding on how the organization can use emerging technologies to satisfy

customer requirements, manage business processes and organizational

performance.


Your focus. What do you want the IT strategy to do? (e.g. improve key

processes in your business, such as supply chain management).

Constraints. Consider the technical skills your employees have (to use,

develop and support the IT strategy) as well as the existing systems and

budget constraints.


Some Tips

Identify and define. Where there is room for improvement in IT? What is the

purpose of the plan?

Evaluate. Is the current IT organization effectively aligned to support operations

and key business functions? Are the current IT strategies and processes

appropriate and how should they evolve over the next few years? Are current IT

expenditure levels appropriately focused on cost/benefit and what future funding

levels would be anticipated over the next few years? Are the IT risks acceptable

and manageable both now and over the new few years?

Develop. Develop an IT strategy that provides a near-term and long-term

roadmap for the IT organization. The roadmap should include: a mandate, vision

and scope of services for the IT organization, alignment of IT projects/priorities

with the business strategy, the future state vision of the systems (applications

and databases) and supporting infrastructure for the organization, the resources

and competencies of the IT organization in supporting the future state vision and

the projects and timelines required to implement the vision.

Don’t forget budget and timeline. Produce cost approximations (both capital and

operating expense costs) so that you know generally how much you will need to

spend and when (in accordance with your timeline). You can estimate these

figures based on your own research (such as supplier literature or websites).

Fit. Always make sure that the IT strategy conforms to the organization’s overall

business plan.

Looking forward

Review your IT strategy to make sure that it continues to

fit with the organization’s overall business plan. Be sure

to follow up quarterly with reviews that assess

implementation, the project’s impact on business and

performance measures. All of these will enhance the

value of your company’s technology use, and help in

making IT a strategic partner in business objectives.


THREE: BUILD AND MANAGE RELATIONSHIPS

Every business today is a relationship business. The quality

and impact of your work, and the profitability of your

organization, depend upon relationships — with customers,

employees, and competitors; with suppliers, distributors,

and support services; with direct reports, senior managers,

and boards of directors. As an IT leader, you should strive to build and manage

relationships to push the best results. As an IT leader, it is important that you

concentrate on building relationships up, down, and across the organization and

outside its customary borders. One of your most impactful contributions as a CIO

is the ability to create and maintain good relationships with all stakeholders.


Perks for the relationship-oriented CIO. A recent poll from Search CIO,

(of 875 senior and mid-level IT executives) stated that CIOs who earn

the highest salaries make building relationships with top executives

more of a priority than managing IT projects. (Waxer, 2012)

Time spent on relationship building. No one will argue that relationship

management takes up substantial time. Approximately half of the time

CIOs spend on non-technical work is devoted to managing relationships,

with either the business or their own IT staff or vendors. In fact, the

numbers are: relationship management with business: 20%, relations

management with IT Staff: 12%, and relationship management with

vendors: 7% (according to new survey data from the Society of

Information Management (SIM).) (Bednarz, 2011)


Some Tips

Network, network, and network. Get involved with professional organizations;

make a contribution by helping out or participating in events in a way that best

utilizes your skills. Sign up to speak at conferences or serve on boards which

allow you to provide valuable input.

Volunteer externally. Seek out a non-profit organization that fits your personal

or professional passion and determine how the organization can benefit from

your skills.

Volunteer within your organization. Identify projects that could use your

aptitudes and get involved. Meet other colleagues and get to know them and

their skills and interests.

Find a mentor. Regardless of how senior you are, there is always someone who

has more experience and proficiency than you. Seek them out and study from

them.

Vendor Management. Select vendors that, at the right cost, can help provide the

greatest incremental value to the organization.

Looking forward

Listen to others and discover what their goals and skills

are. It might be valuable for building relationships, to

send others pertinent information that you come across

that may be of interest to them (such as interesting

articles, advice, event schedules). Ask for feedback, and

suggestions from others and respond to others when asked for their feedback

(reciprocate your time). Keep track of who you want to develop relationships

with, who you already have relationships with and how to reach them. Ponder

about the kind of relationship you want with each individual in your network

(mentoring, informational interviewing, support, feedback, introduction to others,

etc.) Update people on your network (LinkedIn). Don’t forget to thank people for

their time and their feedback. Staying in touch with key people in your network of

relationships is important so that you do not miss out on future opportunities.


FOUR: MANAGE IT RISKS

The most rudimentary level of the IT environment is a sound

and healthy infrastructure. Consider issues of information

security, data privacy and cyber threats and the need to

certify compliance with new regulatory structures (such as

email privacy). IT leaders need to be mindful of these risks and

be able to administer them properly. They need to be shrewd in working through

policy, procedure and technology to address disaster recovery, continuity

planning and data breach procedures. Don’t forget that risk management is not a

onetime exercise. Continuous monitoring and assessing are essential for the

success of your risk management approach. Such monitoring ensures that risks

have been appropriately identified and evaluated and suitable controls put in

place. It is also a way to learn and make improvements to your risk management

methodology.


The threat. The threat of damaging consequences resulting from the

operation of information systems has increased radically for many

reasons such as: large scale mergers and acquisitions (M&As), the need

to consolidate people and systems (due largely to M&A transactions),

greater use of IT hosting and outsourcing, the shift to replace full time

employees with contractors or consultants and new technologies like

cloud and mobile computing.

CIOs are facing a remarkable challenge. How do CIOs balance the need

for adaptable and open access to their company’s IT infrastructure (so

business can be conducted) with the need to lessen the IT risks

associated with that access (so that nothing damaging will happen?)


Some Tips

Understand the risk. IT creates business risk. Being aware of what those risks are

is the first step in handling them properly. The increasingly widespread insider

threat should be tackled via access control and identity management systems.

Treat IT risk management as a business investment. Aligning IT risks with

business requirements will help you allocate the resources you need to manage

those risks.

Re-evaluate risks regularly. Periodic re-evaluation of risks and controls should be

part of any business's IT control strategy, not just when a problem occurs. In any

case, you should reassess your risk management strategies if your controls

collapse.

Use the right controls, and make them secure. You can have all the controls

available to you, but if they can be easily compromised they won't be of much

use. Similarly, if you possess the wrong controls, or an insufficient amount of

controls, you're just as ill-equipped to manage risk. Make sure to administer

suitable controls and provide access to your systems to select people (who

should have authorization). Then monitor and constantly re-assess the controls.

Compliance does not equal security. Securing your systems and data may make

you compliant, but being compliant doesn't inevitably brand you secure. If your

controls suit your regulatory requirements, but don't alleviate risk, then they are

inadequate and should be changed.

Looking forward

When organizing and conducting risk reviews, IT leaders

often uncover ways to improve IT and business processes.

In other words, companies that mange IT risks well also

find ways to manage IT well.


FIVE: COMMUNICATE EFFECTIVELY

Successful IT leaders are able to communicate on many

different levels with all types of people. Career success for an

IT leader is highly dependent on effective communication

skills. Getting your message out to technical staff as well as

non-technical staff is essential in order to achieve leadership

success. Those IT managers who are able to communicate

effectively with all levels of people such as employees, colleagues, clients,

vendors and senior management have a greater chance of creating opportunities

for their organizations. Communicating includes listening, informing, persuading,

and facilitating. In addition, it is important to speak clearly and in a manner that is

understood by others outside of the IT realm.


The word on the street. “The demand of the CIO position requires much

more than technical knowledge. Those who have poor communication

skills--and refuse to improve them-probably won’t be CIOs for long.”

(Hoenig, 2003).

Numbers speak words. In a poll of more than 1400 CIOs working in the

US, 40% said putting technical information into non-technical terms

was the biggest hurdle when working with end users, according to a

summary of the report by RHI consulting. (Computer Weekly, 2012)

Bridging the gap. Being able to “bridge the gap” between IT and the rest

of the organization hinges on a CIOs ability to translate high tech

concepts into consumable business standards that can be

comprehended by HR managers, warehouse workers, and techies alike.


Some Tips

Understand your audience. Communicate to the wants and needs of your

audience, without overloading them with additional information. If asked to

address a specific point, do so at the beginning of your communication. Consider

their current knowledge level, and use this as your starting point in the

communication.

Keep it clear and avoid jargon. Get to the point, and communicate your message

clearly and concisely. Exclude unclear or complex details, letting your audience

know if they want to learn more you would be happy to provide the data and any

additional information.

Communicate in a timely manner. When it comes to prioritizing projects, key

expectations, or critical work, keep those in leadership informed - in a timely

manner. Avoid the inclination to wait until you have all the details to begin to

share with others what you do know.

Take a course. Consider taking a course in communications skills.

Look for a mentor. Establish a relationship with a mentor who can assist you in

developing your communication skills. Look for mentors in your industry who

have experience in dealing with all levels of the organization and can provide you

the benefit of their communication experience.

Looking forward

IT is part of the business-not separate from it and must

therefore be communicated accordingly. CIOs must lose

the habit of speaking in technology terms and learn to

speak in business oriented language. Effective

communication requires listening to and asking

questions of colleagues to better understand their

strategic business needs.


SIX: CHANGE MANAGEMENT

Technology, by nature, demands quick change. Whether it

is business process reengineering, organizational

restructuring or a new strategic direction, change can

create unstable ground for any organization. Mergers,

acquisitions, terminations and other organizational changes

often create anxiety and uncertainty because such business

changes affect every level of an organization. As IT leaders begin to take on more

business-oriented roles, their comprehension of the risks, benefits and

ramifications of change become highly important. An effective IT leader should be

able to embrace and work with changes in an organization in order to

continuously meet goals.


The results are in. The 2011 State of the CIO results identified that

38 per cent of CIOs spend their time leading change efforts. The survey

also revealed that 42 per cent of IT leaders would like to focus on this

goal over the next three to five years. (CIO Magazine, 2010)

Competition is increasingly fierce. As a result of increased competition,

CIOs are under pressure to regularly upgrade existing systems or realize

new technologies either to preserve the organization's leadership or,

more often, just to keep up.

Intricate technologies. Technology complexity is on the rise thanks to a

multitude of environmental factors, from mergers and acquisitions to

increasing regulations.


Some Tips

Define change management process and practices. Create a plan for dealing

with organizational changes. This plan should cover areas such as: procedures for

handling changes, roles and responsibilities of the IT staff, measurements for

change management, and the kinds of changes to be handled.

Define the change. You need to consider the organization as a whole (both IT and

business objectives) to determine where the organization is versus where it

needs to be and to identify the specific goals and objectives of the change

initiative.

Communication matters. Effective communication skills are highly important

when it comes to change management in an organization. Your coaching skills

will be valuable as people within an organization must be allowed an opportunity

to react to the desired change, and may need some one-on-one support.

Implement and oversee the changes. At this stage, apply the change and

monitor the effects. During implementation, employees throughout the

organization need to remember why they are working hard on implementing a

change. Therefore, as change leader, you should continually remind people, using

multiple media (formal e-mails, meetings, in house training,) what the change is

and why it is crucial for the organization.

Adjust your change management plan if necessary. If you notice that the change

is not being properly implemented, or employees are not handling the change

well, you may need to adjust or reformulate a part of or the entire change

management process to make it more effective.

Looking forward

In effective change management, all changes should be

recognized and planned preceding any type of

implementation. Back-out procedures should be created

in case changes generate problems. Then, after changes

are applied, they should be carefully verified and

assessed.


SEVEN: BE PROACTIVE IN SETTING AND PLANNING IT GOALS

Be proactive in establishing and developing appropriate IT goals for the

organization. Selecting the right priorities for the

organization and designing plans that are aggressive but

attainable can make a big difference in formulating clear

IT goals. Planning is an essential ingredient for an IT

leader, but unfortunately too many executives fail to

plan. Possessing the faculty to create a clear and concise

plan that speaks to the organization’s goals and

objectives, and aligns with the organization’s overall IT strategy, positions IT

leaders for more responsibility and makes them proactive instead of reactive to

possible situations in the organization.


CIO’s role. Research strongly suggests that the CIO's role is more and

more developing into that of a proactive position rather than a reactive

one and that this trend will become even more evident as the CIO

morphs into just another member of the 'C-level' executive team that

already includes the CEO and CFO.

CIOs responsibility. CIOs responsibility continues to shift from one that

is at a technical/operational level to one at a more

strategic/management level. This shift will result in a slow advancement

of the CIO's role in association to other C-level executives, with

'achievement or success' in their context being re-termed to include

strategic, organization-wide business goals and objectives.


Some Tips

Gather a team. Consider a team that is embodied by each department in your

organization. The team should make sure that the company mission statement

reflects the company’s principles. (Don’t forget the organization’s IT strategy.)

Create a plan. Growth and better use of technology to directly support a

company’s needs and strategy must be the drive of all of IT’s goals. Formulate a

company mission statement, primary goal(s), key operating goals, departmental

main goals, supporting actions and timeframe for accomplishment.

Assess. Ensure that the technology selected will support current and future

business needs. In addition to considering areas that will benefit most from new

technology, examine how to maximize the benefits of existing technology.

Select. By using information to gain control of your technology decision, you can

weigh the pros and cons of each possible goal by determining the expected

benefits, total costs, and implementation timeframe.

Implement. This requires a comprehensive plan to ensure that you achieve

specific, measurable goals with a systematic approach, as well as improved

business procedures that match your new system’s capabilities.

Support. Ensure that technology is meeting the business goals by building in the

necessary support and ongoing evaluation necessary for success. Consider

training as well as third-party support needs.

Review. Using the target objectives, and with clear statements of the specific

activities required to achieve the goals, ensure that periodic reviews are in place.

Looking forward

Your ability as a company to compete in the marketplace

is accomplished in part by an ongoing investment in either

leading-edge technology or the integration of solid

technology into your work practices. Smart growth and

better use of technology to directly support the company's

needs give you the chance to fulfill the goals you set forth.


EIGHT: DEVELOP AND MAINTAIN BUSINESS ACUMEN

First and foremost, CIOs must be business

executives. CEOs expect these leaders to provide

technology solutions that support the overall

business objectives rather than pursuing “nice to-

have” enhancements to the current IT systems

portfolio. In order to create the most effective and

value-added IT function, CIOs must understand

fully the strategy and specific challenges facing

each business unit. In fact, the objective is less about IT-business alignment and

more about total business integration.


The numbers are in. In a survey by CIO Magazine, 58 percent of the

responding 500 CIOs reported that understanding the business is a

pivotal skill for CIO success-a skill that falls way outside any classic set

of technical skills. (State of the CIO survey, 2006).

Don’t forget business goals. Aligning IT initiatives with business goals

(64 percent), improving IT operations & systems performance (51

percent) and cultivating the IT/business partnership (48 percent) are

among the most frequently cited activities where CIOs spend the

majority of their time and focus.(State of CIO survey, 2010).


Some Tips

Develop a professional reading list. Seek out ideas of great books on each of the

functional areas within your company and read and learn.

Financial knowledge. While it is not critical to know how to read balance sheets

or cash flow statements, it is important to be able to interpret profit-and-loss

statements, ROI, depreciation and how capital expenses differ from operating

expenses. Consider taking online tutorials as a primer on financial statements so

you can operate in synch with your CFO.

Take business classes. You do not have to take masters level classes to learn

basic business concepts. Consider enrolling in an online university program that

has some first and second year undergraduate classes to fit your schedule.

Discuss business concepts and seek help from colleagues. Seek out a mentor, or

group of people that you can discuss business ideas and strategies with.

Search the internet. There are many online forums and blogs that can add value

to your leadership experience.

Start an Executive MBA Program. This is probably the best and easiest way to get

a good foundation in all of the areas, (but also the most costly). There are several

great schools with very flexible programs including weekend and evening

coursework or accelerated programs that limit your time away from work.

In house training. Some corporate giants are getting their CIOs trained in

business management fields such as strategic planning, risk management,

financial management and people management.

Looking forward

A CIO really needs to understand what the key business

drivers are for the organization. Business acumen starts

from finance. You therefore need to understand what

drives revenues, what drives profitability and what is

your competitive positioning. You need to have the

commercial skills and also have the ability to take what you do as a CIO and relent

it in business terms to the business stakeholders.


WHAT’S NEXT FOR TODAY’S IT LEADERS?

Today’s IT leaders would benefit from the application of these 8 essential

leadership methods in order to create a vision for their organizations. Effective IT

leaders need to focus their attention towards business and change leadership.

They need to apply their strengths to issues arising in their organization in a way

that goes beyond the technical responsibility of the traditional CIO role. An

effective IT leader should be able to articulate where and how technology

supports business strategy, pinpointing business change issues and propelling

operational innovation. CIOs need to envision themselves as playing the roles of

business strategist, IT strategist, IT functional leader, technology advocate and

change agent. In other words, effective IT leaders should focus their time and

attention on strategic issues, on external relationships and on the future.


THE LITCOM RESPONSE

Litcom helps organizations align business strategy and shape IT directions and

priorities. We focus on aligning processes, technology and people to achieve a

strategic vision. We collaborate with our clients on an IT strategy that achieves

value growth for the enterprise. We provide our clients with key IT management

resources that can assume overall or specific levels of responsibility for the IT

activities on a temporary basis. In addition to day-to-day management of IT staff

and operations, Litcom conducts reviews of existing systems and projects,

develops comprehensive profiles of all IT-related projects underway, monitors the

progress of initiatives, organizes IT efforts to support any business process

improvement activities, and identifies and brings forward IT-specific value

propositions which outline either cost saving or revenue enhancing opportunities.

THE LITCOM COMMITMENT

Our commitment and approach to creating an open, partnering environment with

our clients is key to our mutual success. With this commitment, we have been

successful at building enduring relationships. Our people are some of the most

talented, skilled and dedicated in the industry allowing us to provide our clients

with a sustainable competitive advantage by delivering the highest level of

expertise and know-how to get the job done. Our clients benefit from the deep

experience, knowledge and dependability that our dedicated professionals bring

to engagements. We are committed to our client’s success and ensure that we

have a thorough understanding of the goals, requirements and technical

environment.


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