DB2 Blog

An example was given recently that a Director was recently so unhappy with their IT progress and strategy that one of two things were likely to happen:

1) Fire the CIO

2) Outsource IT

This is telling on many fronts. Also, it is not just a CIO problem. There is a breakdown in communication, a misunderstanding that spending money can automatically solve a problem, and that the business needs and vision is not understood or communicated by either the CIO or the Director. This is a common recipe for expensive mediocracy.

In that communication is a 2-way street, there was no meeting of the minds. Did the Director accept terminology without asking for an explanation in business terms? Did the CIO make an effort to understand the needs of the Director and the organization?

It surprises me that IT spending today continues without clear actionable objectives tied directly to business objectives. I'm certain that discussions were held and plans shared and discussed, but somewhere along the line, the IT costs and the benefits to the organization get out of sync.

There are many solutions presented by the myriad IT vendors. The solutions point to the need to solve problems or take advantage of opportunities through the purchase of products and/or services. If there is no clear definition of how the problems or opportunities really affect the organization, time, money and organizational energy is wasted. Some measurement of success also needs to be defined.

Outsourcing will solve nothing for the Director. In fact, it may exacerbate the issues around communication and understanding of IT issues. With information and its appropriate use as key items for organizational success, there is no guarantee that these can or will be more easily met via a formal agreement with a third party and contratratual SLA. Indeed, the formal nature of contractual arrangements rarely if ever speed up delivery or encourage innovation. Simply put, outsourcing is an abdication by management of IT strategy.

The bottom line is that Directors/CEOs need to understand enough about IT to manage it, and CIOs need to understand the business such that the goals of IT help the organization and support business objectives in the best way possible.

(c) Martin Hubel 2009