At the Gartner BI Summit in Los Angeles this week, VP and Gartner Fellow Ken McGee delivered a presentation called “The 2012 Gartner Scenario: The Call for a New CIO Manifesto.” In his presentation, McGee made some salient — and rather urgent — points:
- CIOs and CEOs don’t share the same priorities. As a result, there is a great disconnect between IT and the rest of the business. From Gartner’s 2012 CEO and senior executive survey and an analysis of 22,000 inquiries submitted by CIOs during the first half of 2011, the analysts illuminate a gap in priorities. CEOs’ top three priorities are: 1) retaining and enhancing existing customers, 2) attracting and retaining skilled workers / talent, and 3) attracting new customers. In contrast, CIOs’ top 3 priorities are: 1) IT management, 2) strategic planning, and 3) business value of IT.
- CIOs must rethink their mission. Gartner recommends that CIOs create a new manifesto (or mission) based on measurable and auditable financial benefits for the enterprise. According to the analysts, this manifesto should contain four principles: 1) Both information and IT are vital. 2) By 2016, >50% of CIO new project spending should be directed toward measurably improving enterprise financial conditions. 3) By 2020, >50% of all enterprise information and IT spending should be directed toward supporting revenue-generating business processes. 4) The incentive portion of CIO compensation should be determined by the amount of money that CIOs and staff create.
- There’s a fairly dire “or else” looming on the horizon. Gartner concludes that because of the disconnect between CIOs and CEOs, 1) An increasing percentage of all CIOs will not report directly to CEOs, 2) An increasing percentage of all CIOs will not become officers of their enterprises, 3) CIO budgets will not experience high single digit or low double digit rates of year-over-year growth, 4) An increasing percentage of all CIOs will not become permanent members of enterprise strategic planning committees. The way to avoid these outcomes is to create and abide by a new CIO manifesto.
Gartner also talked about the need for organizations to become “intelligence organizations.” Gartner define intelligence as having three facets: a specialized form of knowledge, an activity, and an organization. As knowledge, intelligence informs leaders, uniquely aiding their judgment and decision making. As an activity, intelligence is the means by which data and information are collected and interpreted to determine likely outcomes, and disseminated to individuals and organizations who can make use of it. An intelligence organization directs and manages these activities to create such knowledge as effectively as possible. This is where Business Discovery comes into play.
In what we think of as the new enterprise, information workers are empowered to find solutions and make decisions. In these organizations, IT plays a crucial role as an enabler or “empowerer” (is that a word?). We offer a Business Discovery Manifesto as an inspiration for CIOs and other business and technology decision makers who are pursuing Gartner’s new CIO manifesto and working hard to effect a transformation of their companies into intelligence organizations. Click here to read the Business Discovery Manifesto.