CIOs Fail The Communication Test
As publisher of CIO Magazine I meet many chief information officers and senior IT executives. And, I have access to the planet's best research on what motivates these important tech execs.
Better communication with key constituents and alignment of business and technology initiatives remains at the top of their agendas. And has so since 2004.
And that's why the following set of data puzzles me.
The US Department of Commerce reports that corporate profits in America have been at double digit levels now for 16 consecutive quarters. Or, since June 2002. At face value that would seem to suggest a receptive environment in the corner office to increased tech investment.
But that is not the case.
The well respected and widely published CIO Magazine Tech Poll, conducted quarterly in conjunction with Deutsche Bank since August 2000, reports tech budgets in the United States will increase a paltry 6.4% in the coming 12 months. And, that includes ops expenses like staff salaries, overhead etc.
The final piece of perplexing data comes to us from Gartner which has a report out claiming growth in tech investments will lag topline growth in corporate America until 2010!
When I ask myself "why", the only conclusion I can reach is this: CIOs are largely failing in their missions to communicate the business value rationale of IT investment. One would think, it they were better communicators, the growth in IT budgets would at least match topline growth of the firm.
What's your take? What grade would you give CIOs and senior IT execs you know as communicators?
My November 1, 2006 column covers the topic and offers up the CIO IT Value Matrix poster as a roadmap for better communication.
Gary Beach
Publisher
CIO Magazine
508 935 4202
Comments
Gary,
After reading your post, I am reminded of an article from the McKinsey Quarterly: "Splitting demand from supply in IT."
Its basically an article about a new way of streamlining IT. You might have seen it already but if not - thought you might be interested:
http://www.mckinseyquarterly.com/article_page.aspx?ar=1849&L2=13&L3=13
Posted by: Mazie Ng | November 14, 2006 08:37 AM