The inability to change the corporate culture
even in the face of clear market threats.
The gales of creative destruction in global markets and market pressures for performance—growth, profitability, value creation and competitiveness—combined with investor calls for governance changes and changes in executive compensation based on performance create tremendous challenges for executive management. The CIO often must resolve the un-resolvable conflicts resulting when the corporate culture is “locked-in” and can’t change and executive management dictates change—in the form of ERP, CRM or technology infrastructure changes and cost reduction—leaving failures and losses in terms of late and over budget projects or business process changes which are not adopted by the organization. To create sustainable value enterprises must master both operational effectiveness and disruptive change—continuously freshening businesses with new approaches, business models, products, people, and ideas—to enhance and sustain performance.
The fact that most companies cannot meet or exceed the pace and scale of market changes over time provides an incessant call to action. High performing enterprises require an entirely different mindset—emphasizing creativity, creation and destruction—requiring the enterprise consciously creating new innovations and abandoning others when a fresh approach is needed to revitalize a company, industry, market or product. The information available for decision making is a critical factor is making a realistic assessment of the risks and potential returns of a course of action. In addition, Sarbanes-Oxley compliance and other regulatory initiatives and executive management’s need for timely information along with market requirements for reliable earnings, sales and performance data further complicate the day-to-day life of the CIO of a large organization. The CIO also faces on-going challenges in breaking-into and becoming a central part of general management at the executive level.
The CIO confronts the three-fold challenge of reducing costs and improving productivity while enabling the organizational infrastructure to change when, where and how needed to stay-in-the game or to gain a competitive advantage. They are also naturally concerned about both the effectiveness of their individual efforts and their ability to impact corporate performance and the results on their career. It is important for CIOs to align and collaborate with the import stakeholders and constituencies to overcome organizational barriers to change. Level Three thinks the winning strategy for the CIO is to embrace and to shape changes in the infrastructure and information of the business and business processes to sustain high-levels of operational performance. The CIO can enable change but executive management must create a culture of change. Otherwise, the information technology backlog increases, dissatisfaction among key constituencies increases, and rather than the ascending CIO it is the career is over CIO. Thus it is extremely important for the CIO to actively engage in and participate in the shaping of an effective corporate culture and aligning information technology to encompassing risk management in the broadest sense in an future environment anticipating continual change and development. The CIO should participate actively in collaborating with the CEO and senior team to bring about and implement the needed changes within and across the entire enterprise.
Achieving a culture and ethos of change requires the CIO to pursue a broader and deeper course of action which is an ideal preparation for future advancement. The CIO is accountable for the technology and process infrastructure. Information is key to achieving and sustaining operational excellence, to managing the risks companies run when embracing change and creativity, to incorporating the principles of corporate ethics into performance measurement, incentives, and human capital and business processes which are the foundation for a high performance corporate culture.
Level Three is ready, willing and able to help CIOs and the senior management team bring about the needed changes in thinking, feeling and behavior—individually, in infrastructure and information, in executive and middle management and across the front-line staff of the enterprise enabled by information technology.
[Performance] [Tangible Results] [Focused Action] [Avoiding Pitfalls] [Keys to Success]