- The real corporate strategy is often either undocumented (i.e. exists in the CEO’s or CxO’s head), may be in distinct business unit or departmental strategies, or is stated at such a high level that it is not possible for IT to take action.
- The CIO needs a better understanding of the organization’s actual business goals and objectives in order to plan the IT strategy that will enable better alignment between IT and business strategies.
- Detective work is required to ask the right people the right questions in order to find out what the business strategy actually is. Otherwise the IT strategy may fail to anticipate what IT solutions and resources are needed to deliver and support high-priority business initiatives.
Our Advice
Critical Insight
- More than one-half of IT resources in 70% of organizations are working on projects that are not linked to corporate goals.
- In many organizations, the IT leader is not part of corporate strategic planning. CIOs find themselves in jeopardy more often for what they don’t know and aren’t doing than for the things they are doing. Even if the corporate strategy is available, it seldom provides the detailed business information needed to develop a sound IT strategy that enables corporate objectives. The result is misalignment between the business objectives, and what IT actually delivers.
- Where corporate strategies are not deep or documented, the CIO can be the catalyst to force clarity and consensus on corporate priorities by devoting time and energy to understanding the business drivers, strategies, and goals - asking the right questions of the right people in order to find out what’s really needed.
Impact and Result
- Reduce investments in IT initiatives that are not linked to the achievement of corporate goals.
- Increase the relevance of the CIO in the development of business strategy.
- Elevate the reputation of the IT department in the organization.