white papers, reports, and articles. Mike served as editorial director and project manager for this book and for my previous three books. Thank you again, Mike!
Most of all, I want to thank my wife, Sandra, and our two sons, Chase and Brice.
Preface
There's no question that IT has reached a tipping point. The sense of change is undeniable. Everywhere you look, the signs all point toward the largest and most significant transformation since the dawn of IT.
Naturally, chief information officers (CIOs) are at the eye of the storm. And that's where they should be – at the center of the action. No top executive is better suited to understand the epic scope of the transformation; no other executive has the skill, experience, knowledge, and temperament required for these turbulent times.
The C-suite rightly looks to the CIO for guidance. My advice to the CIO is simple: Be ready to lead. Your leadership is required, and it is absolutely necessary.
I've been researching this book for two years, and it's been quite an educational process. I've learned that some of what I knew is still valid and valuable. I've also learned to shed some of my older beliefs and to embrace newer ideas that resonate with greater potential. Like most of us, I am keenly aware that as the modern enterprise becomes more open and more customer-centric, the risk of cyber attacks increases. That awareness shouldn't lead us to a place of fatalistic complacency or acceptance. Yes, we must be mindful of the threats we face. But we must be steadfastly determined to provide the safeguards and strategies necessary for competing successfully in spite of the dangers.
Over the course of conducting interviews for the book, many incredibly valuable insights emerged. Here's a quick list of the main takeaways:
• The big shift is from inward-facing IT to outward-facing IT.
• CIOs must shift focus from internal customers to external customers.
• IT must shift focus from providing service to providing value.
• Everything is moving to the cloud; CIOs must assume a “cloud first” mentality.
• Innovation is more than new technology – it's also about change management, enabling new processes, and hiring the best talent.
• CIOs need to work closely with the business to create innovation that drives real value.
• CEOs expect more from their CIOs than ever before.
• CIOs must deliver on a higher set of expectations, or they will be replaced.
• CIOs must shift from a measurement mentality to a value creation mentality.
• CIOs must shift focus from historical data to real-time information.
• Today, IT is all about creating real business value.
• All business is digital. All business.
• When IT has a bad day, the business has a bad day.
• IT still matters. It matters to the top line and to the bottom line. IT matters more than ever because IT is everywhere in the business. Without IT, you're out of business.
• CIOs need to step up, raise the bar, and elevate their game to meet the challenges of the big shift.
I hope you enjoy reading this book and find it a useful addition to your library. It's the fourth book I've authored on the topic of IT leadership, and it reflects more than three decades of experience in the world's most fascinating industry. I'm sure you will agree that now is the best time to be an IT leader. I urge you to accept the challenge and to become a guiding force for positive change in this exciting new era of dynamic transformation.
Chapter 1
The New Normal
EXECUTIVE SUMMARY
For CIOs, expectations have risen dramatically. In addition to delivering near-perfect levels of operational service, CIOs are expected to provide astute guidance and advice that supports enterprise strategy and drives real business growth.
I've written a lot in the past three years about the transformation of information technology (IT) from a cost center to a value center. The chief information officer (CIO) now has a seat at the C-suite table, and the C-suite expects the CIO to deliver real business value!
Delivering real business value is a major part of what I've been calling the big shift. In the past, CIOs were under constant pressure to reduce costs. Although that pressure hasn't gone away entirely, it's been replaced by new pressure to help the business units drive revenue. The old game was all about the bottom line; the new game is about both the bottom line and the top line.
Another key component of the big shift is the change in focus from internal users to external customers. Increasingly, IT is serving the company's customers. Unlike internal customers, external customers generate revenues. If they don't receive great service from your company, they won't merely complain – they will find another company to serve their needs, and your company will lose revenue.
Without a doubt, the game has been elevated and the stakes for IT are far higher than ever before. That's why I call it the big shift – the role of IT is changing enormously and rapidly.
If the new role of IT is enabling the business to deliver value, then delivering great service is clearly a prerequisite. Internal users might be willing to put up with spotty service, but external customers have choices. And they will walk. Great CIOs see the writing on the wall and have already prepared for next level of competition.
Are you ready to play the game at a higher level?
A good friend recently reminded me that most IT users don't really care about technology – they care about the results that technology delivers. Great CIOs understand that having great technology is less important than delivering great user experiences. My friend cautioned against the tendency to equate technology with results, and urged CIOs to look in the mirror and ask themselves if their IT departments are perceived as a corporate-style Department of Motor Vehicles.
There's an excellent reason why we always talk about people, processes, and technology. You need all three to provide the best possible IT service. You simply cannot get the job done with great technology alone.
But here's the really important takeaway: CIOs who can't deliver great results will never be able to deliver the value that corporate leadership wants and demands from IT.
As we enter an era of extreme dynamism and unprecedented innovation, I am absolutely convinced that a new and higher level of IT leadership is required. The modern enterprise expects IT to deliver real business value and contribute significantly to revenue growth in ultra-competitive markets. Failure is simply not an option.
From my perspective, IT leaders must embrace the challenges and opportunities of the new era or fall by the wayside. Successful IT leaders must be fully integrated, multirole C-suite players; they must be stellar communicators; they must know how to create and sustain crucial partnerships across the C-suite; and they must win the war for talent by attracting, hiring, and retaining the best and the brightest of our industry.
Make no mistake: The big shift is happening. It's here, it's
