CIOs need to demonstrate IT value
The role of the strategic CIO is increasingly important to an organization’s success. As businesses strive to become more digital, the CIO must be able to demonstrate the value of IT in order to secure budget and resources. In addition to budget, the perception of IT value is equally important so that IT has a directional voice in strategic decision making.
The role of CIOs is becoming more strategic and thus important for organizational success
CIOs play a vital role in organizational success, and their strategic importance is only increasing. In order to demonstrate IT value, CIOs must be able to effectively communicate with all members of the organization – from the board of directors to front-line employees. They must also have a deep understanding of how IT can be leveraged to achieve business goals. By aligning IT initiatives with business objectives, CIOs can prove their worth and strategic value within an organization.
As businesses move towards digitization, CIOs must be able to demonstrate the value of IT in order to secure budgeting and resources
As businesses move more and more of their operations online, the role of the chief information officer becomes increasingly crucial. CIOs must be able to demonstrate the value of IT in order to secure budgeting and resources for their department. This can be a challenge, as demonstrating IT value can sometimes be difficult to quantify. However, there are a few key ways that CIOs can go about demonstrating IT value to their organization. It all starts with aligning IT goals with business goals so that CIOs can showcase a clear connection between how investing in IT will help the company meet its overall objectives.
There are several reasons why demonstrating IT value is essential for CIOs. First, it is important to gain the trust of the board of directors and executive leadership. IT stakeholders need to see that IT furthers business objectives. This makes investing in IT a no-brainer.
Secondly, stakeholders need to see the value you bring, and need to be frequently reminded of what IT recently delivered. It’s easy for line-of-business leaders to get caught up in the details of what’s to come, so they mustn’t forget about what IT recently delivered.
How to showcase IT value in a repeatable fashion
As with any good marketing campaign, there is no one-size-fits-all channel or medium to syndicate the value of IT. CIOs and IT leaders should consider a mix of marketing content such as:
- Monthly Newsletters – An email blast to the company touting recent IT victories and key business objectives achieved.
- Quarterly Business Reviews – Quarterly sessions with IT’s key stakeholders to showcase how IT is tracking on business goals, success measures, and bottom-line outcomes.
- Constant Feedback Loops – How does IT know if they’re hitting the mark with stakeholders? The best approach is simply to ask! Send periodic surveys or hold structured feedback forums.
When it comes to metrics, it’s ok to have a few IT metrics. One mustn’t forget that IT itself is part of the business. This means IT will have its own IT-centric OKRs and KPIs such as uptime, prevented breaches, and so on.
However, I recommend focusing on business metrics such as profitability in terms of dollars saved or new revenue channels unlocked. IT routinely works magic in this arena, but rarely demonstrates the business value of such; likely because IT views these metrics as being “owned” by the business. However, if IT contributed to the bottom line, why not show it off?
As an IT leader, you hold the livelihood of many IT professionals is held in your capable hands. Solid IT delivery requires constant syndication of value to the business, and one can’t expect the business to easily see the breadth and depth of IT value by simple observation. Tout your wins often and productize IT value realization in a polished package. Leverage outside help with artistic collateral if need be, as packaging is almost as important and the product itself.