CIO as Strategist and Executive: Roles in IT Leadership

Introduction

Information technology (IT) is currently integral to providing business services and organizing company information. Business processes, policies, and plans have shifted from the back office to the internet. As businesses embrace e-commerce and other innovative implementations of IT, leadership in controlling business information resources has become increasingly significant. The development of new approaches and the improvement of existing ones within the modern information era require strong engagement with information management from the outset (Leidner, Preston & Chen, 2010).

The efficient, effective, and inventive application of information technology demands a high degree of leadership and insight that extends well beyond standard IT functions. Researchers assert that the demand for strong control of information management has necessitated the presence of a Chief Information Officer (CIO) in executive departments and organizations. The CIO carries numerous responsibilities and duties in managing information in the business sector (Chen, Mockler, Preston & Teubner, 2010).

Virtually all key executive agencies recognize the relevance of a CIO, and most entrust him or her with the responsibility of implementing important information management processes based on business objectives. To obtain the full benefits of information management development, organizations must exploit the potential of CIOs as information management leaders and active participants in the implementation of organizational strategic plans and policies. CIOs must respond to the challenges of developing credible agencies and implementing and managing information management capabilities to meet organizational needs (Chen, Preston & Xia, 2010).

Research and discussion from various scholars offer strong suggestions on what organizations ought to do to ensure the effectiveness of CIO-led organizations (Chen, Preston & Xia, 2010). This paper addresses the responsibilities of the CIO as strategic planner and executive, particularly in the context of the link between business strategy and IT strategy — cases in which CIOs assume the role of directing and guiding the implementation process. The practices and roles assumed by CIOs may also differ from those of other executives (Leidner, Preston & Chen, 2010).

This study addresses those roles from the context in which CIOs operate. The operational and structural functions of CIOs vary based on the level of authority entrusted to them (Leidner, Preston & Chen, 2010). Job descriptions define the extent and responsibilities of employees within organizations, and consequently the functions of IT department management differ from those of the executive staff. Claiming that the CIO heads the IT department does not diminish the relevance of the IT Manager. The CIO is responsible for ensuring the efficiency of information systems and confirming their future implications. This study identifies a common ground between the roles of strategist and executive, arguing that they are inseparable. The position of a CIO within an organization is ultimately to enhance information management and development (Chen, Mockler, Preston & Teubner, 2010).

The CIO as Strategist

Many CIOs use IT strategies to redefine the significant components of information technology — ranging from the costs of organizational infrastructure and staffing to day-to-day operations. These strategies have intimate links with business strategies, with the overarching purpose of developing infrastructure while reforming costs and processes. In other words, the CIO is a person with the vision and authority to help reform the overall business strategy. However, organizations also expect the CIO to embody organizational tactics as an inherent element of leadership. Some argue that streamlining organizational strategy is the sole responsibility of the CIO; however, Leidner, Preston & Chen (2010) assert that CIOs also bear liability for misguided strategies.

For this reason, strategy-making is properly understood as a competent organizational function assumed by dedicated experts rather than by CIOs alone. Organizations hire strategists to conduct external evaluations, analyze competitors, and identify external trends applicable to their business. It is, of course, the responsibility of any leader to understand the organization's vision and the strategies required to accomplish that vision. Some researchers believe that economic analysis dictates the kind of strategies developed, but Chen, Mockler, Preston & Teubner (2010) argue that the driving elements of strategy formation come from organizational perspectives.

The organization expects the CIO to bear responsibility for misguided strategies in the face of intense challenges, while staff members rely on the CIO to implement effective strategies that advance the organization's well-being. If the CIO alone bears the liability for developing organizational strategies, strategic departments within most organizations would become functionless. Preston, Karahanna & Rowe (2006) assert that many CIOs and executives endeavor to articulate the vision of their organizations. Strategic departments take responsibility for developing strategic plans, while executives and CIOs oversee those plans. They require direction from experts when implementing strategic plans, which relieves them of the burden of developing ineffective strategies independently (Chen, Preston & Xia, 2010).

The development and implementation of strategic plans determine the success of any organization, and CIOs alone are unable to lead the organization single-handedly. Involvement of top executives, strategic department staff, and other experts is critical in determining the elements required to formulate enduring and effective strategies. Prior to implementing any strategy, the CIO must define the significance and implications of the strategies being considered. For example, the CIO must identify the roles played by various personnel involved in strategy development. The following questions are relevant before executing any strategic plan (Preston, Karahanna & Rowe, 2006):

a) What is the role of the strategic department, and why does it matter in this case?

b) Do customers obtain any value from the strategic plans?

c) Do the strategic plans indicate any future implications?

In most cases, the role of the CIO falls within the functions of the IT department. When the CIO takes general responsibility for managing strategic planning procedures, the strategic department can become redundant. Therefore, the CIO effectively functions as a small company within the IT department. Even when faced with the intense pressure of formulating strategies, the CIO should remain focused on the company's vision and implement effective strategies accordingly.

Strategic Planning and Business Capabilities

The CIO is an IT leader, and the organization grants him or her ample time for strategic planning. The IT department plays an integral role in implementing organizational strategies, but developing sustainable and executable strategies is demanding, requiring vision and strong IT capabilities. Practicing strong capability-based strategies involves several key components (Preston, Karahanna & Rowe, 2006).

Business capabilities require the company to maintain certain operational procedures, retain productive staff, provide adequate resources, and streamline IT in order to achieve defined business outcomes. Business capabilities respond to competitive risks, strategic gaps, and economic changes. The maturity level of these capabilities is what makes organizations flexible and responsive enough to execute their strategy. In addition, the CIO and top executives must maintain a clear link between IT capabilities and organizational strategies in order to maximize the value of IT investments.

Strategic plans should be directed at fully exploiting the available market position and acquiring maximum benefits. The direction employed by personnel allows organizations to adapt gradually to environmental changes, market fluctuations, and shifts in consumer behavior. The CIO functions as a mapping device, providing visibility and illustrating the avenue toward strategic positioning. He or she is also responsible for defining and delivering IT capabilities aligned with strategic goals. The process of strategic development entails describing a set of capabilities through conceptual, rational, and physical frameworks, and making decisions at various organizational levels to maximize the value of IT (Preston, Karahanna & Rowe, 2006).

Though implementing IT strategies may appear straightforward, it involves various components that can hinder the implementation process. There is therefore a need to break down the elements of business capability into valuable constituents. The success of effective strategic plans calls for the ability to perform, sound knowledge, effective policies, abundant resources, and supportive organizational cultures and communications. A strong strategy leads to effective implementation and maximizes the capabilities of mature business enterprises. Furthermore, strong strategic planning assists organizations in extracting optimal value from IT capabilities by implementing decision-making processes at multiple levels (Preston, Karahanna & Rowe, 2006).

Strong business capabilities also facilitate responsive and flexible strategic planning and implementation. However, in the event of unexpected developments, organizations should have contingency plans to absorb sudden changes without significant disruption. Before initiating implementation, organizations should cross-examine their plans for efficiency and ensure a strong link between business and IT strategies (Preston, Karahanna & Rowe, 2006).

CIOs as strategists use strong strategic plans to develop financial plans and establish organizational priorities. With a prioritized plan, stakeholders can articulate their demands without obstacles. This also allows the engagement of new investors through budget transparency, which in turn gives the IT department optimal time for the development and implementation of effective plans. Capability comes at the cost of hard work and remains relatively fixed based on the level of organizational learning and the type of organization employing it. A capability-based strategy is therefore feasible to execute and must remain competitive for sustainability purposes (Chen, Preston & Xia, 2010).

Conclusion

Technology advancement has swiftly changed the roles and responsibilities of executives at every management level — from chief management officers and chief functional officers to Chief Information Officers. Recent researchers describe how numerous agencies are providing strategic and executive functions to advance organizational technology. Information technology broadly encompasses web-based technologies, and researchers argue that its full potential is only realized in conjunction with effective CIO leadership (Preston, Karahanna & Rowe, 2006).

With this in mind, the CIO focuses on maximizing the way in which an organization operates, rather than simply managing digital technologies. The responsibilities of CIOs are changing rapidly, and top executives must pay close attention to these recent changes and trends. IT is significant in offering business services and in managing company information. Business operations have shifted from the back office to the internet, and as companies become more internet-based, innovative implementations of IT help organize and control business information resources. The creation of new methods and the improvement of existing ones within the information technology era requires strong engagement with information management from the outset.

This study identifies a common ground between the roles of strategist and executive, demonstrating that these roles are more similar than they are distinct. The position of a CIO within an organization is ultimately to enhance information management and development — and that mission requires both strategic vision and executive leadership working in concert.

References

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