SIDEBAR: A Structure That Means Business

Cathie Kozik, corporate vice president of supply chain IT, was one of the first adopters of this model. She made strategic hiring decisions and moved IT staff with advanced business skills onto the right team. She also hired businesspeople directly into IT, specifically onto the Plan team, which helped the rest of the team get up to speed on the business and intricacies of the functional areas. "For the Run team, I have people who sit with the business so that they have the same sense of urgency about serving the customer and getting product out the door as the businesspeople do," says Kozik.

Although the Build team is positioned separately from the rest of the business, the Plan and Run teams are colocated with the business, inspiring a shared vocabulary. "[IT is] thinking every day about volume, conversion costs, conversion cycles and the kinds of things that matter to the business" in the supply chain area, says Kozik.

One unintended consequence of connecting Kozik's staff so tightly to their business partners is that project demand rate has increased significantly. "We now have people directly connected to the business to hear and foster ideas and thoughts. Previously, the business would have lots of ideas but did not have time to bring them to us since it meant arranging special meetings," says Kozik. She tries to keep the number of projects under control by aligning investment planning with Motorola's overall strategy.

SIDEBAR: How to Build a Business Sensibility

• CIO Bruce Metz at Thomas Jefferson University created a customer service program that teaches how to understand customers and manage customer interactions. "We used a professional trainer to develop content based on direct feedback from the business units," says Metz. The trainer facilitated the two-month series of workshops for all members of the IT department. (Download the curriculum outline.)
• CIO and SVP Stewart Gibson at insurance broker USI Holdings encourages his business analysts to get nontechnical certifications in property and casualty insurance and insurance licenses. He builds funding for both into his annual budget.
• With CIO Scott Wesson's sponsorship, Vice President of IT Strategy Michael Baldwin participates in the CIO Executive Council's Leadership Advancement Pathways program, where he can speak with CIOs and his peers from other industries about advanced business competencies. "Every time I talk to someone outside of AIMCO, I increase my business acumen and am able to pinpoint more variables affecting our business," says Baldwin.