Professional Documents
Culture Documents
Midmarket Context: 'The Five Characteristics of a New Breed of CIO' (17 March
2014)
Key Findings
The next 10 years are set to become the first truly digital decade, when digital technology will
move to the forefront of finding new sources of value for the enterprise.
The personal success of CIOs in the coming decade will be heavily influenced by their abilities
to manage the transition to a new role in response to new business expectations, while ensuring
continuity in the management of traditional enterprise IT.
Recommendations
Increase your scope of accountability from the IT organization to the entire ecosystem of
technology that is relevant to your enterprise, including consumers, suppliers and partners.
Adopt a different approach to planning, breaking away from fixed routines toward a more
dynamic, hunting and learning approach.
Move away from measuring success based on efficient enterprise operations, and focus instead
on more impactful business outcomes and the value delivered through a more engaged
workforce.
Table of Contents
Analysis.................................................................................................................................................. 2
What Is Driving the Future of the CIO Role?...................................................................................... 3
What Characteristics Are Required for the New Breed of CIO?......................................................... 5
How Can CIOs Determine Where to Begin?................................................................................... 10
Conclusion..................................................................................................................................... 12
Recommended Reading.......................................................................................................................12
List of Tables
Table 1. First Digital Decade Implications for CIOs.................................................................................. 4
Table 2. Each Dimension Is Facing a Fundamental Shift in the Required CIO Capabilities....................... 6
Table 3. CIOs Should Assess Their Level of Experience and Maturity in Each of the Five Dimensions..... 8
List of Figures
Figure 1. Five Changing Dimensions of the New Breed of CIO................................................................5
Analysis
CIOs are facing an unprecedented level of conflicting stakeholder expectations. For the past 10
years, they have been required to focus on cost, control and quality in response to global economic
conditions. Although these remain important, the emphasis is shifting to demand for technology that
is digital, dynamic and diverse, as business leaders look to drive growth over the next 10 years. The
personal success of CIOs in the coming decade will be heavily influenced by their abilities to
manage the transition to a new role in response to new business expectations, while ensuring
continuity in the management of traditional enterprise IT.
Recent Gartner research has described the emergence of four potential futures for IT within the
enterprise, each bringing with it a new set of expectations for CIOs (see "Four Potential Futures for
the IT Organization and Their Implications for the Enterprise: Get Ready for Competitive
Advantage"). As CIOs begin to adapt to these emerging models of IT, their profiles are shifting away
from the traditional role as head of IT. This transition is leading many CIOs toward a new role that is
better described as an "explorer" or "pioneer," where they are expected to focus on creating
competitive advantage through technology-based business innovation (see "The Four Futures of the
CIO Role").
The new set of expectations, coming from a new breed of digitally minded, technology-enabled
enterprises, will require a new breed of CIO. This research will help CIOs take the first step in
evolving to meet the challenge.
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A new wave of technology and business innovation the first since the e-commerce boom of the
late 1990s drives these characteristics, and will continue to shape the next 10 years. Meeting
these new expectations will require a new breed of CIO.
From Efficient
Ways of Working
to Effective
Outcomes
Business
Understanding
Measure of
Success
From Routine to
Dynamic
Planning
Approach
New
Breed
of CIO
Primary
Focus
Scope of
Accountability
From Operations
to Monetization
From IT
Organization to
IT Ecosystem
For CIOs to be successful in the First Digital Decade, they must begin making the transition away
from the traditional CIO role, and invest time and attention in developing their capabilities in each of
the five dimensions (see Table 2).
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Table 2. Each Dimension Is Facing a Fundamental Shift in the Required CIO Capabilities
Dimensions
Business
Understanding
Primary Focus
Scope of
Accountability
Traditional CIO
Measure of
Success
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Planning
Approach
Breadth of business
understanding based on basic
knowledge of how the
business operates
Cost-efficient performance of
the IT organization in response
to business demand
Dimensions
Traditional CIO
The following table corresponds with "Toolkit: Five Characteristics of a New Breed of CIO," and
provides CIOs with an opportunity to consider their strengths and weaknesses today across each of
the five dimensions of a new breed of CIO. CIOs should select the answers that best represent their
current capabilities, and use the Toolkit to identify where to develop themselves as they face the
challenges of the First Digital Decade.
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Table 3. CIOs Should Assess Their Level of Experience and Maturity in Each of the Five Dimensions
Question
Answer 1
Answer 2
Answer 3
Answer 4
Answer 5
Business Understanding
Where have you
gained your understanding of the
way the business
operates?
Primary Focus
Which business
outcomes are you
most directly involved in delivering?
Applying technology
to enable productivity
and drive efficiency in
back-office business
operations
Applying technology to
increase efficiency and
effectiveness of front-office business operations, such as marketing, product development and customer engagement
Scope of Accountability
What is the scope
of your leadership
accountability?
A shared global service provider, which includes IT responsibility as well as business capabilities, such as HR
and finance
Planning Approach
Where do you focus your attention
when planning the
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Question
Answer 1
Answer 2
Answer 3
use of technology
in the enterprise?
Measure of Success
How is your personal contribution
to the business
measured?
Performance of the
IT organization as a
cost
Performance of the IT
organization as an
enabler
Answer 4
Answer 5
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Seek out opportunities to take a leadership role in driving a specific business initiative.
Look for opportunities to rotate into a business leadership role ideally, with profit and loss
accountability for a fixed period before returning to the CIO role.
Balance on-the-job business leadership development with business courses, either in person or
online, and pursue an executive M.B.A. degree if the opportunity is available.
Primary focus:
Reserve personal time to proactively engage with senior business leaders on business strategy
and development issues. Cut through the strategic "buzzwords" to get at the heart of the
challenges and opportunities faced by the business.
Pull together a small team of senior IT experts who are creative, business-minded, out-of-thebox thinkers. Work closely with them to generate proposals for business innovation through the
combination of technical and physical assets. Be sure to reserve a small amount of funding for
exploring and testing the proposals.
Scope of accountability:
Evaluate how much of your time is spent between tasks that focus within the IT organization,
and ones that focus on the business and the customer. Target a minimum ratio of 60%
outward-focused tasks to 40% inward-focused.
Empower key members of your IT management team to take a stronger role in leading the IT
organization to free up your time to focus on business initiatives. Limit your involvement with IT
operational issues to the deviations and escalations, rather than the routines.
Build alliances with other business leaders, such as the head of HR and the head of finance, to
jointly deliver business solutions that leverage technology.
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Seek opportunities for yourself and key IT leaders to take leading roles in enterprise change
initiatives.
Planning approach:
Extend your focus beyond creating a strategy for the IT organization to creating a strategy for
using information and technology to drive business success. The question of "What do we do
with information and technology?" becomes much more important for the new breed of CIO
than the question of "How do we develop and manage IT?" This is not to say that a professional
IT organization is no longer important. However, incremental improvements to the way the IT
organization works should be treated as a tactical contribution to the more valued goal of
improving the strategic business use of technology and information.
Focus on creating a clear and consistent long-term vision for the use of technology and
information in the enterprise, one that provides guidelines for the desired direction, but is not
rigidly prescriptive. Then develop an execution plan that relies on creative and volatile tactics
that explore the potential paths of achieving the strategy, and take advantage of innovations in
technology and business models. Regularly review the strategy and execution plan to ensure
that the vision is still valid and that the actions are going in the right direction. This will allow the
strategy to emerge and adapt as new opportunities arise from disruptive innovations.
Measure of success:
Review the IT scorecard and routine management reports. Limit the use of inward-facing, ITinternal metrics that measure "how" the work gets done. Instead, focus the majority of metrics
on the realized business outcomes of the IT organization.
Allocate a dedicated resource to tracking and reporting on the business benefits realization of
all IT investments. Ensure that accountabilities are clear for who will deliver the benefits, and
regularly report on achieved versus planned benefits.
Stop presenting IT cost data on its own. IT costs should always be communicated in relation to
the value delivered by the investment. Additionally, look for opportunities to communicate cost
as an index of business output (for example, IT cost per product sold or IT cost per service
contract).
Work with business stakeholders to identify the key leading and lagging indicators of business
performance that are most relevant from an IT perspective. Gartner's Business Value Model can
provide ideas for where to start these stakeholder discussions (see "The Gartner Business
Value Model: A Framework for Measuring Business Performance"; note: this document has
been archived; some of its content may not reflect current conditions).
Ensure that all personal performance metrics are tied to business outcomes. CIO performance
should be measured in a similar way to any other business leader role.
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Conclusion
The First Digital Decade is emerging at a different pace across different industries, with some
enterprises fully enveloped in the challenge today, while others are only beginning to feel the effect.
However, all CIOs, regardless of their industry or the enterprise maturity, should avoid the mistake
of only watching and waiting. A complacent mindset can be likened to that of a child on the beach
watching the waves hit the shore. Suddenly, a wave comes in faster than expected, and the child
has to scramble to get out of the way, perhaps reacting too late, and ending up cold and startled,
with wet feet. Another wave comes in faster and farther. Though the child sees the waves coming,
each one takes him by surprise as he misjudges the speed.
The waves of technology and business innovation will continue to arrive in every industry further
and faster than expected, creating a new breed of enterprise that will require a new breed of CIO.
To not get caught, CIOs must begin to adjust their focuses, profiles and skills as we enter the First
Digital Decade.
Recommended Reading
Some documents may not be available as part of your current Gartner subscription.
"Toolkit: How to Create a One-Page IT Strategy"
"The Gartner Travel Guide to the First Digital Decade"
"Hunting and Harvesting in a Digital World: The 2013 CIO Agenda"
"Digitalizing the Business"
"The Game Changes in the Front Office"
"The Nexus of Forces: Social, Mobile, Cloud and Information"
"The Internet of Things Is Moving to the Mainstream"
"Four Potential Futures for the IT Organization and Their Implications for the Enterprise: Get Ready
for Competitive Advantage"
"The Four Futures of the CIO Role"
"Field Research Summary: The Changing IT Career"
Torgovnick, K. (23 April 2013). "The Future of Work and Innovation: Robert Gordon and Erik
Brynjolfsson debate at TED2013." Retrieved from blog.ted.com/2013/04/23/the-future-of-work-andinnovation-robert-gordon-and-erik-brynjolfssondebate-at-ted2013.
McGrath, R. (June 2013). "Transient Advantage." Harvard Business Review.
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Schmidt, E. and Cohen, J. (2013). "The New Digital Age: Reshaping the Future of People, Nations
and Business." New York, NY: Alfred A. Knopf.
More on This Topic
This is part of an in-depth collection of research. See the collection:
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