How we can solve the CIO problem by properly organizing our chiefs
Why do we have the Chief Information Officer (CIO)
All of a sudden, we have lots of chiefs. It used to be the CEO and CFO. Then we added the CIO. But, the CIO presented a problem. Could we find one person, who had the capabilities required to understand business processing, technology, information management, equipment and network operation, and management strategy. Now, we are introducing the CTO for technology, the CMO for marketing, etc. What should be the criteria for having and organizing chiefs? What is the proper role of chiefs?
CIOs need to know information technology, business analysis, and corporate management strategy
This highlights a drawback with the conventional approach, where we add a “solution” to what is in place, rather than rethinking what is needed to really solve the problem. When computers were introduced, it created the need for special capabilities to develop programs and operate centralized equipment, so we set up electronic data processing. As time wore on EDP gave way to IT and the empire grew, as did the isolation from the business and the strategic direction of the enterprise. So, the CIO was created to solve this problem. Then another problem arose, the CIO has to understand information utilization and the strategic direction, business processing, human management, and technology operation. Each of these areas requires a manager with different capabilities.
The rational for organizing information technology is changing
At the same time, the rationale for centralized program capabilities and data processing gave way to application packages and client equipment that had to be operated directly by the business.
It is time to rethink. Instead of creating more chiefs, we should organize our capital to apply the capabilities needed to manage and support it, under a chief who needs one main capability for that capital. If we do this, we will solve the CIO problem and put IT back where it belongs to be managed as capital, rather than as technology. We must stop administering information technology to make a service available to users. We must manage IT properly as business, information, and facility capital to ensure that it is utilized to produce results and pay back the large IT investment.
We need to manage information as capital and service archectures as tangible facility capital
The answer is Result-performance Management (R-pM). R-pM organizes data, knowledge, records, and intelligence information solutions as information capital. R-pm combines application information system processing with the business process as business capital. R-pM manages and maintains all networks and equipment as facility equipment capital. This aligns capital management with the capability of chiefs responsible for managing capital.
21st Century Management eliminates 20th century problems
Result-performance Management (R-pM) eliminates the CIO and other capital management problems. Slash overheads and costs, simplify business management, and boost competitive advantage through R-pM, the conventional method for 21st Century Management.
Download your 21st Century Management Manual today
Your 21st Century Management Manual, The R-pM Toolkit, is available today and is under continual development to expand and refine 21st Century Management. The R-pM Toolkit is offered at a nominal price to encourage wide use of R-pM. Get your R-pM Toolkit, and future updates, at result-performance-management.com.
