Forum: IT in the boardroom, CIOs not in the news

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Why CIOs struggle to get their voices heard in the boardroom

When young IT graduates leave university, bright-eyed and ready to launch their careers, does it occur to them to set their sights on a company directorship?

That is the question Robin Johansen, Beca Group CIO posed to a group of senior CIOs at the presentation of the MIS 100 — the top 100 biggest users in IT. He told them that young accounting and legal professionals are likely to aim for a place on a company board, but it’s doubtful IT graduates even have it on their radar.

Johansen had previously checked with the Institute of Board Directors, an organisation with around 5500 members, on how many directors had an IT background and was told about 10 percent. He then asked those present at the MIS 100 event how many were board directors. Only five people raised their hands.

In his presentation Johansen cited a 2010 Biennial IBM Global CEO study of 1500 CEOs, which showed that in Australia and New Zealand 84 percent of CEOs expect the level of complexity in their business to grow, but only 39 percent believe they know how to deal with this successfully. Johansen says dealing with constant change, and making sense of data are the very skills that leading CIOs possess, and yet their views are not being heard often enough at board level.

He pointed to an IDC quick poll of 143 respondents in 2009 that showed up to 40 percent of CIOs are reporting to positions other than the CEO. And, then he posed the following questions:

• Have we become marginalised with a focus on operational rather than strategic and innovation initiatives?

• Is the voice of IT being ‘filtered’ via the CFO and the CEO?

• Is Board composition still ‘tilted’ towards financial and legal skills?

• Is corporate governance for IT broken or inappropriate in 2011?

• Since IT professionals have always thrived in a rapidly changing environment, why are we under-represented in meeting the business challenges of ongoing change?

Following the presentation I put some of these questions to New Zealand Computer Society CEO Paul Matthews. He says that IT governance is a major focus of the organisation this year, and they have launched a number of courses in this area. He says demand for the courses is high, but will it improve the representation of IT at board level?

While the NZCS is right to see this as an important area to focus on, my challenge to leading CIOs is to get their voices heard outside of the usual forums and to advocate publicly for a bigger role for IT in decision-making.

How often do we hear a CIO take a stand on major issues facing not just the ICT industry, but the role that ICT can play in improving the New Zealand economy?

What do CIOs think about the government Infrastructure as a Service RFP — which one commentator says could see 70 percent of public sector information stored in the cloud?

And, if analysts are right in predicting a massive shift to cloud computing, where are the CIOs publicly debating the privacy commissioner’s recent hints that legislation on the use of data may be required?

Maybe CIOs are content to see the public debate on ICT issues being carried out by industry groups such as NZCS on copyright and TUANZ on telecommunications. But if you leave it to others to speak on your behalf, you can’t complain about invisibility.

Of course speaking out involves risk, and it opens you up to public criticism. Last month, when we ran a Q and A with Rod Drury online, in the comments space ‘Glenn’ wrote: “Why does Drury get so much airtime in Computerworld?”

Drury gets “airtime” because he is one of the few IT practitioners willing to speak up and debate the issues publicly.

It is probably true that IT graduates don’t see a board directorship in a major New Zealand company as an achievable goal. But with the lack of a public voice, CIOs may find that the graduates with a ‘go-getting’ attitude don’t even look to a career in a large company or public sector organisation, much less hope to rise to a directorship.

Not when the likes of Drury and the other IT start-ups we regularly profile in Computerworld aren’t afraid to publicly speak out and, by doing so, raise their companies’ profiles to attract the very best IT graduates – the ones who want to make a difference.
Comments
Rod Drury Of course he is allowed to comment he is the big wig.
Where as nuther oldy and myself have sections in our employement contract that say we are not allowed to speak to the media. I'm sure we all see/hear things that we can validate but are tied from saying anything.
Posted by anuther oldy at 21:57:37 on June 8, 2011

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Rod Drury Then why don't you get it changed?
Posted by Anonymous at 10:04:26 on June 9, 2011

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Of course IT people are passed over for directorships If I remember correctly, a RAND study in the late '60s showed that Data Processing (as it was then) was top heavy with introverts - those with "a low need for social interaction". The feminist revival in the '70s brought a few more women aboard, so that by 1980 I had not one but two female systems programmers out of five staff, and I valued them highly for their people skills. Unfortunately, not much of that rubbed off on the blokes. So then the women started families, the blokes reverted to nerdery (is that a word?), and I gave up management ambitions for the much more exciting technology of really really big computers and networks. It was a conscious decision, recognising that us techos find it really hard to put up with the pandering to idiocy in the face of reality that is the lot of most CIOs. We sort of admire them,actually. I mean who would willingly face up to the board member fresh from Larry's superyacht, and try to convince them that going to Oracle from our preexisting AIX/POWER/DB2 infrastructure probably won't happen in 1 month for under $100K? or vice versa. just an example. Any techo can give you plenty more.

And having said that, are you surprised I'm anonymous??????
Posted by Nuther Oldy at 16:00:15 on June 8, 2011

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Of course IT people are passed over for directorships cool, good comment - so what you advise for an up an coming star - experience is great, but only useful if you can pass onto those coming through
Posted by Anonymous at 10:06:13 on June 9, 2011

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Of course IT people are passed over for directorships Experience is also personally useful - it should help you avoid repeating mistakes. Yours or others. The answer to your question, I think, is brutal honesty. When I could acknowledge that I'd always get the greatest kicks from making computers bend to my will, I became happy to let a more "people" person get the top job. Funnily enough, that led to my best boss ever - together we raised our IT productivity by 40% in 3 years.
So while you're still up and coming, be as clear as you can about where you want your star to shine; if it's among the managers, be prepared to share your cool toys now, and eventually give them away; otherwise make a real effort to understand other personality types (look up Myers Briggs) and really practise asking people what they want before you tell them what they need. :-)
Posted by Nuther Oldy at 13:41:19 on June 9, 2011

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Of course IT people are passed over for directorships > Funnily enough, that led to my best boss ever

The old JC-John-the-Baptist combo; CIO turns water into wine and leaves it to the extrovert CEO to sell the revolution. Great when it works.

What was your CEO's technological background knowledge; or did he just listen to you?

And what does "IT productivity" mean? lines of code per week - or a measurable improvement in business "productivity" (whatever that means) demonstrably sourced to IT changes?

If the latter; how do you demonstrate and measure that?
Posted by Irv Ogby at 6:11:21 on June 10, 2011

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Of course IT people are passed over for directorships He was CIO, I was his CTO, and we trusted one another. I derived 40% from our joint achievement in getting a five year plan finished in 60% of the time. The real success in my view was that the business consulted us BEFORE they did stuff. Pity about the subsequent takeover.....
Posted by Nuther Oldy at 10:44:32 on June 10, 2011

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