By René Carayol, 22 December 2003 16:55
COMMENT The top echelon of IT is going to be dominated increasingly by those whose background isnÂ’t in the profession. ThatÂ’s the way it looks if the recent history of the sector is anything to go by says Rene Carayol. But it neednÂ’t be that wayÂ…
IÂ’ve been doing a lot of work with headhunters recently. A number of blue chip organisations have it in their minds that they need some kind of uber-CIO, a head of IT to top all heads of IT. So I have found myself on the final panel of the selection process.
Can these organisations find the individual they think they need? What kind of candidate are they tending to plump for? Let me take a step back to explain a seismic shift that is going on.
IT kicked off properly around the 1970s. Of course there were computing functions before then and big strides such as the client-server model and internet-everything found their feet in the 1980s and 1990s but cast your mind back 25 years or so.
IT then reported in to Finance. So it still does in many cases but then that was the norm because it was bloody expensive, a massive investment.
What’s more – and keep this in mind – it was about efficiency, timeliness and accuracy. It was about putting go-faster stripes on the side of the organisation.
The board wanted IT to be careful and safe, for heads of IT to be obedient, doing as they were told.
As a result we were blessed with a generation of IT supremos who were risk averse. Automating existing manual processes was about as good as it got.
Fast-forward those 25 years. We have fostered an IT culture that doesn’t surprise me. CIOs known as service providers within their organisation are held up as the cream of the crop. The current crop of CIOs, IT directors, heads of IT – you pick the naming convention – are for the most part not a colourful bunch. Grey and unexciting are two words that come to mind.
Now consider how in most companies the reputation of IT – I’m being brutally honest here – is in shreds. Board members have shaken their heads in unison at the hype around Y2K, the dot-com boom and bust and the general over-investment that subsequently led to downsizing.
Hear these words: The empire is striking back. The last thing many of them are looking for when doing that CIO headhunting is another geek. One of the hardest things in the world is making a technologist commercial. So theyÂ’re doing the opposite.
Increasingly I am seeing the interviewing and appointing of CIOs who speak business speak, who want to win and who embrace risk.
Why are they doing this? Every company has bought IT now. Every company is asking how it is delivering competitive advantage. Only the problem is businesses are often moving seven times faster – that’s right, x7 faster – than IT can respond.
To align technology with business CIOs are being sought who are commercial big hitters, people who deliver.
WeÂ’re now seeing capex return to IT. After some hard years itÂ’ll be one of the big trends of 2004. Businesses are becoming more confident again. If the war in Iraq marked a low point at the start of this year, the recent capture of Saddam Hussein has added to the upsurge in good feeling.
But if IÂ’m a CEO or CFO, if IÂ’m one of a number of top executives sitting in that board meeting, I want to make sure that when the organisation is going to spend money on IT, the organisation will have someone in charge who knows business.
ItÂ’s a case of goodbye Mr Geek, hello Mr Marketing, Mr Operations, MrÂ… you get the idea.
Companies are promoting on the all-round package, including knowledge of a sector, technology, business and their personality.
Now donÂ’t get me wrong. I still believe there has never been a better time to be in IT. But if weÂ’re not careful all the bosses wonÂ’t have come up through the IT department. Trust me, there will be someone willing to do that MBA, to make the right noises to recruiters and board members and amass just enough technical knowledge, who will not pass Go and go straight to the post.
And thatÂ’s dangerous for the industry I love.
The IT function is fast becoming the dustbin for corporate losers. We are not attracting the best and brightest and wonÂ’t find ourselves led by those who have come from an IT background.
So what to do? There is no simple answer – something that has crept up on us over years won’t change overnight – but let me leave you with three things to think about:
1. Ban the word ‘them’ in your organisation. It’s not about IT and then everyone else in the company. You are all on the same side and you must speak their language rather than expect them to speak yours.
2. Realise technology per se has never delivered competitive advantage, not on its own. ItÂ’s all about how and when it is utilised. ItÂ’s the implementation that makes the difference.
3. ItÂ’s about people, stupid. IÂ’m sure I donÂ’t need to explain that.
We are at a tipping point. As we enter a new year, I feel those of us from IT can win if we want to. The prize is huge and critical for all our organisations and the wider economy.
But change is imperative.

Comments
There are 6 comments. Join the discussion
1. anonymous
from CIO to anything else and also the CEO becoming the evolutionary officer, what state of flux are we in. Sure enough i don't know why i am still doing this job. Do have a great christmas and a happy new year Mr. Carayol.
2. 'Sam' Samuel
This article is quite correct - the back office IT department will become a thing of the past - it will have to provide 'value add' not just be a cost centre. However, thats only half way - the IT industry must also adapt. Many technical sales people have a 'comfort zone' of selling 'geek to geek'- they must be able to help the 'backroom boys communicate with the new corporate management types - or both will be losers as these changes bed in.
The future belongs to those who can bridge the technology and business worlds.
3. Salvatore Reina
IT is a means to an end and this is quite often forgotten by those who are deep in technology. The role of the "bridge" individual is more important than ever now as organisations look to realise IT benefits (not necessarily just financial ones). Great article that hits the nail on the head
4. anonymous
Make room for the robots, backroom "boys".
We are approaching the second wave of automation. As Alan Turing so preciently pointed out, if you can routinise a process sufficiently, you can computerize it.
Soon we'll have to tell our unbelieving children that "BPO" was once a human activity, just as "computers" were once human.
The term "CIO" will become as obsolete as "coachman".
5. anonymous
There is nothing new in the need for CIOs to become more business focused, and indeed it isn't restricted to the IT department.
Throughout business it is now essential that the Marketing and Operations Directors are more finacially savvy than ever before, Finance and Operations directors more commercially aware etc. etc.
It is about time that CIOs realised that we are not immune to these changes, in fact we are in the ideal position to become the generalists that we seem to fear will take over from us. We often have the broadest remit of most functional heads and regularly find ourselves involved with the processes and business practices throughout every department in our companies. This level of knowledge and exposure should give us a central role in the redefined organisations of the future if only we could accept the loss of the Ivory Tower.
6. Andy McKee
Information Technology has driven one of the biggest booms of the modern era - Information Technology has been driven by geeks. So lets take technology out of the hands of geeks and put it into the hands of those who really gave us the dot com boom - the marketers, managers and money men!
IT needs to deliver business benefit - every IT Manager worth their salt should understand that. What allows technology to deliver those benefits is an understanding of the technology and the business needs and the imagination to match the two.
Every medium to large company in the world has an Accounts Manager of some description. We don't really need them, we could all take a stab at running Sage but we put the business at risk of missed opportunites and very real dangers with our lack of understanding of how accountancy really works.
IT leaders (CIO, IT Manager whatever) bring real benefits to organisation (whatever their background) and a little bit of geek can go a long way.