How We Got Here

Why are CEOs asking CIOs to act more as strategic business partners — and why is it happening now? First, IT is more and more pervasive in everything we do, and this drives a strong relationship between business goals and the IT that will help achieve those goals. Therefore, the CIO must be effective at understanding strategy, and working in a structured way to translate that strategy into opportunities and sound IT investments.

At Chevron during the past three years, Louis Ehrlich had made great strides in helping the business turn strategy into action. At the same time, because of globalization and the need for a more integrated value chain, there was a desire to get better at strategy deployment. The dialogue Louis was having with the chief executive of Global Downstream and others was about strategy in general and what it takes to achieve it. Ultimately the business unit leadership recognized the value of a deliberate approach to translating strategy into action. They moved the business strategy group, along with a new group focused on overall business architecture and many other services, to the new position that Louis now holds.

The path Marc West took at H&R Block was different. Originally, Marc focused 95 percent on getting the technology foundation right. H&R Block engaged the key processes for opening, staffing and delivering tax preparation software for its seasonal storefronts. That led to more insight into the core business, its operations and how the company serves customers. Marc's team then looked at how that compared to what competitors were doing, which in turn helped them see the larger industry dynamics. Through this, Marc gained industry understanding that provided some strategic insights for H&R Block's CEO and management team about what was happening in its market. The CEO said: "That's really interesting, so why don't you keep going?" As this "outside-inside" view matured, the CEO asked Marc to lead a new line of business, driving growth in the commercial markets.

None of this is to say that we, or any other CIO, should turn our backs on the operational or transformational aspects of our role. But as the CIO position evolves, we are spending more of our time as strategists and less on the other aspects of the role.

Unfortunately, a lot of companies still aren't ready for a CIO who has a broader, strategic focus. Many execs have a bias against IT based on history and lack of trust. Also, many business leaders still in place today haven't grown up with technology and don't see its possibilities the way younger generations do.

CEOs who don't embrace CIOs as business strategists will miss out on the ways IT can make a difference and transform the business in ways they could not think of themselves.

Companies that are not able to leverage the maximum value from technology are creating their own competitive barriers in the market. CEOs need to understand that even if you take IT out of the equation completely, CIO is one of the few roles within a company that has a good view of the end-to-end value chain. If the CIO isn't leading strategy or isn't at least very much involved in it, the company will miss that perspective — that ability to connect the dots between businesses, functions and geographies.