Effective It Leadership

EFFECTIVE IT
LEADERSHIP
8 ESSENTIAL METHODS THAT DELIVER RESULTS

THE CHALLENGE
Today’s IT leaders face countless challenges in their day to day environment.
Resources and budgets are limited. Technology evolves at a faster pace than
business requirements. Security threats continue to rise.
Added to these challenges, IT leaders are expected to deliver
high quality of services with fewer resources and smaller
timelines. They must allocate limited IT resources in ways
that create value for their organizations and support future
business growth. They continuously search for better ways to
identify, measure and communicate IT value to the organization.

The goal of IT leaders is to deliver greater IT value that drives business success
while attempting to increase shareholder value and decrease operating risk. In a
nutshell, today’s CIOs must be business leaders, not just technology leaders and
be able to communicate technology issues into comprehensive and useful
business terms.

The role of IT leaders has never been more challenging.

So, what are the requirements necessary to overcome some of these challenges
and become a truly effective IT leader?

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‘Delivering results oriented IT solutions’

OUR PURPOSE

This white paper is geared towards IT leaders, or CIOs of small, medium and large
sized organizations (note that we use the terms ‘IT leaders’ and ‘CIOs’
interchangeably throughout this paper). Recognizing the various challenges that
today’s IT leaders are facing, this paper identifies 8 essential leadership methods
that can assist IT leaders to effectively and successfully guide their organizations.
We offer points of consideration to the current challenges that IT leaders are
facing, and provide tips to help IT leaders face these challenges. While there are
many different skills and strategies, ways and styles to effective IT leadership, we
focus on the ones we feel are the most powerful and can deliver the best results.
In addition, we recognize that successful leadership is also a product of an
individual’s skill, qualifications and personality traits.

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8 ESSENTIAL LEADERSHIP METHODS THAT DELIVER RESULTS

ONE: CREATE EFFECTIVE TEAMS
As a leader in your organization, some of your
responsibilities extend to attracting, cultivating, and
conserving talent (human resource management). In
today’s economy structure, the responsibilities to seek and
administer talent reach well beyond the conventional
boundaries of the company to include vendors, consultants,
business partners, and all the various outsourcers that IT
depends upon. Successful IT leaders know the importance of building a team that
has depth as well as skill in critical areas. Building a good team enables a CIO to
position IT to help an organization achieve its goals and objectives.

A few points to consider
• Competition. IT leaders are competing for talent with cloud providers, IT
vendors and other corporate IT shops.

• Shortage of talent. There’s a limited supply of IT professionals who possess
valuable and specific skills that meet today’s technology needs (e.g.
networking, IT security, applications development and database management).
In fact, 75% of CIOs say it’s challenging to find skilled professionals today.
(Source, Robert Half Technology, survey of 1,400 CIOs, 2012).

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Some Tips
 Third party involvement. Consider hiring the services of recruitment agencies
that specialize in the IT field and are familiar with the skills and requirements that
potential candidates must have.
 Get involved. Polish your assessment skills by volunteering to help your HR
department screen job applicants. Offer to train or mentor new employees to
enhance coaching skills. CIO involvement during the interview process also
suggests the importance of the position to the potential candidate as well as the
value of the position for the organization.
 Craft your message. Don’t forget the importance of a positive and impactful ad.
Describe the exciting environment, the rewards, and the learning experience.
Make sure that your ad is carefully assembled and describes the specific skills and
requirements of the ideal candidate. You don’t want to receive 500 resume
submissions that are not geared towards the specific skills and requirements you
advertised for.
 Go for free talent. Hire an intern. Interns tend to be young and fresh out of
school. They are likely to be in tune with new technologies. They are also eager to
gain experience and learn new skills. Many colleges and universities have
postings geared towards interns.

Looking forward
Preserve your talent pool. Meet with your team on a
regular basis. Connect with them by setting up forums
where you can listen and questions can be posed by your
team and discussions can occur. Don’t forget to spend time
to carefully and continuously communicate your vision and
key expectations.

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TWO: DESIGN AN IT STRATEGY
Most organizations have a detailed business strategy which
acts as a guide to business decisions. An IT strategy is the
structure which ensures that the money being spent on IT
by the organization is being used to further its strategic
goals. Your IT strategy organizes all the elements of your IT
function including infrastructure, organization and
application/data strategies. Don’t forget that effective governance is also
important as it helps to align business with IT strategies. An effective IT strategy
should help an IT leader to prioritize investments as well as provide
understanding on how the organization can use emerging technologies to satisfy
customer requirements, manage business processes and organizational
performance.

 Your focus. What do you want the IT strategy to do? (e.g. improve key
processes in your business, such as supply chain management).
 Constraints. Consider the technical skills your employees have (to use,
develop and support the IT strategy) as well as the existing systems and
budget constraints.

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Some Tips
 Identify and define. Where there is room for improvement in IT? What is the
purpose of the plan?
 Evaluate. Is the current IT organization effectively aligned to support operations
and key business functions? Are the current IT strategies and processes
appropriate and how should they evolve over the next few years? Are current IT
expenditure levels appropriately focused on cost/benefit and what future funding
levels would be anticipated over the next few years? Are the IT risks acceptable
and manageable both now and over the new few years?
 Develop. Develop an IT strategy that provides a near-term and long-term
roadmap for the IT organization. The roadmap should include: a mandate, vision
and scope of services for the IT organization, alignment of IT projects/priorities
with the business strategy, the future state vision of the systems (applications
and databases) and supporting infrastructure for the organization, the resources
and competencies of the IT organization in supporting the future state vision and
the projects and timelines required to implement the vision.
 Don’t forget budget and timeline. Produce cost approximations (both capital and
operating expense costs) so that you know generally how much you will need to
spend and when (in accordance with your timeline). You can estimate these
figures based on your own research (such as supplier literature or websites).
 Fit. Always make sure that the IT strategy conforms to the organization’s overall
business plan.

Looking forward
Review your IT strategy to make sure that it continues to
fit with the organization’s overall business plan. Be sure
to follow up quarterly with reviews that assess
implementation, the project’s impact on business and
performance measures. All of these will enhance the
value of your company’s technology use, and help in
making IT a strategic partner in business objectives.

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THREE: BUILD AND MANAGE RELATIONSHIPS

Every business today is a relationship business. The quality
and impact of your work, and the profitability of your
organization, depend upon relationships — with customers,
employees, and competitors; with suppliers, distributors,
and support services; with direct reports, senior managers,
and boards of directors. As an IT leader, you should strive to build and manage
relationships to push the best results. As an IT leader, it is important that you
concentrate on building relationships up, down, and across the organization and
outside its customary borders. One of your most impactful contributions as a CIO
is the ability to create and maintain good relationships with all stakeholders.

 Perks for the relationship-oriented CIO. A recent poll from Search CIO,
(of 875 senior and mid-level IT executives) stated that CIOs who earn
the highest salaries make building relationships with top executives
more of a priority than managing IT projects. (Waxer, 2012)
 Time spent on relationship building. No one will argue that relationship
management takes up substantial time. Approximately half of the time
CIOs spend on non-technical work is devoted to managing relationships,
with either the business or their own IT staff or vendors. In fact, the
numbers are: relationship management with business: 20%, relations
management with IT Staff: 12%, and relationship management with
vendors: 7% (according to new survey data from the Society of
Information Management (SIM).) (Bednarz, 2011)

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Some Tips
 Network, network, and network. Get involved with professional organizations;
make a contribution by helping out or participating in events in a way that best
utilizes your skills. Sign up to speak at conferences or serve on boards which
allow you to provide valuable input.
 Volunteer externally. Seek out a non-profit organization that fits your personal
or professional passion and determine how the organization can benefit from
your skills.
 Volunteer within your organization. Identify projects that could use your
aptitudes and get involved. Meet other colleagues and get to know them and
their skills and interests.
 Find a mentor. Regardless of how senior you are, there is always someone who
has more experience and proficiency than you. Seek them out and study from
them.
 Vendor Management. Select vendors that, at the right cost, can help provide the
greatest incremental value to the organization.

Looking forward
Listen to others and discover what their goals and skills
are. It might be valuable for building relationships, to
send others pertinent information that you come across
that may be of interest to them (such as interesting
articles, advice, event schedules). Ask for feedback, and
suggestions from others and respond to others when asked for their feedback
(reciprocate your time). Keep track of who you want to develop relationships
with, who you already have relationships with and how to reach them. Ponder
about the kind of relationship you want with each individual in your network
(mentoring, informational interviewing, support, feedback, introduction to others,
etc.) Update people on your network (LinkedIn). Don’t forget to thank people for
their time and their feedback. Staying in touch with key people in your network of
relationships is important so that you do not miss out on future opportunities.

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FOUR: MANAGE IT RISKS
The most rudimentary level of the IT environment is a sound
and healthy infrastructure. Consider issues of information
security, data privacy and cyber threats and the need to
certify compliance with new regulatory structures (such as
email privacy). IT leaders need to be mindful of these risks and
be able to administer them properly. They need to be shrewd in working through
policy, procedure and technology to address disaster recovery, continuity
planning and data breach procedures. Don’t forget that risk management is not a
onetime exercise. Continuous monitoring and assessing are essential for the
success of your risk management approach. Such monitoring ensures that risks
have been appropriately identified and evaluated and suitable controls put in
place. It is also a way to learn and make improvements to your risk management
methodology.

 The threat. The threat of damaging consequences resulting from the
operation of information systems has increased radically for many
reasons such as: large scale mergers and acquisitions (M&As), the need
to consolidate people and systems (due largely to M&A transactions),
greater use of IT hosting and outsourcing, the shift to replace full time
employees with contractors or consultants and new technologies like
cloud and mobile computing.
 CIOs are facing a remarkable challenge. How do CIOs balance the need
for adaptable and open access to their company’s IT infrastructure (so
business can be conducted) with the need to lessen the IT risks
associated with that access (so that nothing damaging will happen?)

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Some Tips
 Understand the risk. IT creates business risk. Being aware of what those risks are
is the first step in handling them properly. The increasingly widespread insider
threat should be tackled via access control and identity management systems.
 Treat IT risk management as a business investment. Aligning IT risks with
business requirements will help you allocate the resources you need to manage
those risks.
 Re-evaluate risks regularly. Periodic re-evaluation of risks and controls should be
part of any business's IT control strategy, not just when a problem occurs. In any
case, you should reassess your risk management strategies if your controls
collapse.
 Use the right controls, and make them secure. You can have all the controls
available to you, but if they can be easily compromised they won't be of much
use. Similarly, if you possess the wrong controls, or an insufficient amount of
controls, you're just as ill-equipped to manage risk. Make sure to administer
suitable controls and provide access to your systems to select people (who
should have authorization). Then monitor and constantly re-assess the controls.
 Compliance does not equal security. Securing your systems and data may make
you compliant, but being compliant doesn't inevitably brand you secure. If your
controls suit your regulatory requirements, but don't alleviate risk, then they are
inadequate and should be changed.

Looking forward
When organizing and conducting risk reviews, IT leaders
often uncover ways to improve IT and business processes.
In other words, companies that mange IT risks well also
find ways to manage IT well.

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FIVE: COMMUNICATE EFFECTIVELY
Successful IT leaders are able to communicate on many
different levels with all types of people. Career success for an
IT leader is highly dependent on effective communication
skills. Getting your message out to technical staff as well as
non-technical staff is essential in order to achieve leadership
success. Those IT managers who are able to communicate
effectively with all levels of people such as employees, colleagues, clients,
vendors and senior management have a greater chance of creating opportunities
for their organizations. Communicating includes listening, informing, persuading,
and facilitating. In addition, it is important to speak clearly and in a manner that is
understood by others outside of the IT realm.

 The word on the street. “The demand of the CIO position requires much
more than technical knowledge. Those who have poor communication
skills--and refuse to improve them-probably won’t be CIOs for long.”
(Hoenig, 2003).
 Numbers speak words. In a poll of more than 1400 CIOs working in the
US, 40% said putting technical information into non-technical terms
was the biggest hurdle when working with end users, according to a
summary of the report by RHI consulting. (Computer Weekly, 2012)
 Bridging the gap. Being able to “bridge the gap” between IT and the rest
of the organization hinges on a CIOs ability to translate high tech
concepts into consumable business standards that can be
comprehended by HR managers, warehouse workers, and techies alike.

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Some Tips
 Understand your audience. Communicate to the wants and needs of your
audience, without overloading them with additional information. If asked to
address a specific point, do so at the beginning of your communication. Consider
their current knowledge level, and use this as your starting point in the
communication.
 Keep it clear and avoid jargon. Get to the point, and communicate your message
clearly and concisely. Exclude unclear or complex details, letting your audience
know if they want to learn more you would be happy to provide the data and any
additional information.
 Communicate in a timely manner. When it comes to prioritizing projects, key
expectations, or critical work, keep those in leadership informed - in a timely
manner. Avoid the inclination to wait until you have all the details to begin to
share with others what you do know.
 Take a course. Consider taking a course in communications skills.
 Look for a mentor. Establish a relationship with a mentor who can assist you in
developing your communication skills. Look for mentors in your industry who
have experience in dealing with all levels of the organization and can provide you
the benefit of their communication experience.

Looking forward
IT is part of the business-not separate from it and must
therefore be communicated accordingly. CIOs must lose
the habit of speaking in technology terms and learn to
speak in business oriented language. Effective
communication requires listening to and asking
questions of colleagues to better understand their
strategic business needs.

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SIX: CHANGE MANAGEMENT
Technology, by nature, demands quick change. Whether it
is business process reengineering, organizational
restructuring or a new strategic direction, change can
create unstable ground for any organization. Mergers,
acquisitions, terminations and other organizational changes
often create anxiety and uncertainty because such business
changes affect every level of an organization. As IT leaders begin to take on more
business-oriented roles, their comprehension of the risks, benefits and
ramifications of change become highly important. An effective IT leader should be
able to embrace and work with changes in an organization in order to
continuously meet goals.

 The results are in. The 2011 State of the CIO results identified that
38 per cent of CIOs spend their time leading change efforts. The survey
also revealed that 42 per cent of IT leaders would like to focus on this
goal over the next three to five years. (CIO Magazine, 2010)
 Competition is increasingly fierce. As a result of increased competition,
CIOs are under pressure to regularly upgrade existing systems or realize
new technologies either to preserve the organization's leadership or,
more often, just to keep up.
 Intricate technologies. Technology complexity is on the rise thanks to a
multitude of environmental factors, from mergers and acquisitions to
increasing regulations.

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Some Tips
 Define change management process and practices. Create a plan for dealing
with organizational changes. This plan should cover areas such as: procedures for
handling changes, roles and responsibilities of the IT staff, measurements for
change management, and the kinds of changes to be handled.
 Define the change. You need to consider the organization as a whole (both IT and
business objectives) to determine where the organization is versus where it
needs to be and to identify the specific goals and objectives of the change
initiative.
 Communication matters. Effective communication skills are highly important
when it comes to change management in an organization. Your coaching skills
will be valuable as people within an organization must be allowed an opportunity
to react to the desired change, and may need some one-on-one support.
 Implement and oversee the changes. At this stage, apply the change and
monitor the effects. During implementation, employees throughout the
organization need to remember why they are working hard on implementing a
change. Therefore, as change leader, you should continually remind people, using
multiple media (formal e-mails, meetings, in house training,) what the change is
and why it is crucial for the organization.
 Adjust your change management plan if necessary. If you notice that the change
is not being properly implemented, or employees are not handling the change
well, you may need to adjust or reformulate a part of or the entire change
management process to make it more effective.

Looking forward
In effective change management, all changes should be
recognized and planned preceding any type of
implementation. Back-out procedures should be created
in case changes generate problems. Then, after changes
are applied, they should be carefully verified and
assessed.

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SEVEN: BE PROACTIVE IN SETTING AND PLANNING IT GOALS
Be proactive in establishing and developing appropriate IT goals for the
organization. Selecting the right priorities for the
organization and designing plans that are aggressive but
attainable can make a big difference in formulating clear
IT goals. Planning is an essential ingredient for an IT
leader, but unfortunately too many executives fail to
plan. Possessing the faculty to create a clear and concise
plan that speaks to the organization’s goals and
objectives, and aligns with the organization’s overall IT strategy, positions IT
leaders for more responsibility and makes them proactive instead of reactive to
possible situations in the organization.

 CIO’s role. Research strongly suggests that the CIO's role is more and
more developing into that of a proactive position rather than a reactive
one and that this trend will become even more evident as the CIO
morphs into just another member of the 'C-level' executive team that
already includes the CEO and CFO.
 CIOs responsibility. CIOs responsibility continues to shift from one that
is at a technical/operational level to one at a more
strategic/management level. This shift will result in a slow advancement
of the CIO's role in association to other C-level executives, with
'achievement or success' in their context being re-termed to include
strategic, organization-wide business goals and objectives.

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Some Tips
 Gather a team. Consider a team that is embodied by each department in your
organization. The team should make sure that the company mission statement
reflects the company’s principles. (Don’t forget the organization’s IT strategy.)
 Create a plan. Growth and better use of technology to directly support a
company’s needs and strategy must be the drive of all of IT’s goals. Formulate a
company mission statement, primary goal(s), key operating goals, departmental
main goals, supporting actions and timeframe for accomplishment.
 Assess. Ensure that the technology selected will support current and future
business needs. In addition to considering areas that will benefit most from new
technology, examine how to maximize the benefits of existing technology.
 Select. By using information to gain control of your technology decision, you can
weigh the pros and cons of each possible goal by determining the expected
benefits, total costs, and implementation timeframe.
 Implement. This requires a comprehensive plan to ensure that you achieve
specific, measurable goals with a systematic approach, as well as improved
business procedures that match your new system’s capabilities.
 Support. Ensure that technology is meeting the business goals by building in the
necessary support and ongoing evaluation necessary for success. Consider
training as well as third-party support needs.
 Review. Using the target objectives, and with clear statements of the specific
activities required to achieve the goals, ensure that periodic reviews are in place.

Looking forward
Your ability as a company to compete in the marketplace
is accomplished in part by an ongoing investment in either
leading-edge technology or the integration of solid
technology into your work practices. Smart growth and
better use of technology to directly support the company's
needs give you the chance to fulfill the goals you set forth.

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EIGHT: DEVELOP AND MAINTAIN BUSINESS ACUMEN
First and foremost, CIOs must be business
executives. CEOs expect these leaders to provide
technology solutions that support the overall
business objectives rather than pursuing “nice to-
have” enhancements to the current IT systems
portfolio. In order to create the most effective and
value-added IT function, CIOs must understand
fully the strategy and specific challenges facing
each business unit. In fact, the objective is less about IT-business alignment and
more about total business integration.

 The numbers are in. In a survey by CIO Magazine, 58 percent of the
responding 500 CIOs reported that understanding the business is a
pivotal skill for CIO success-a skill that falls way outside any classic set
of technical skills. (State of the CIO survey, 2006).
 Don’t forget business goals. Aligning IT initiatives with business goals
(64 percent), improving IT operations & systems performance (51
percent) and cultivating the IT/business partnership (48 percent) are
among the most frequently cited activities where CIOs spend the
majority of their time and focus.(State of CIO survey, 2010).

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Some Tips
 Develop a professional reading list. Seek out ideas of great books on each of the
functional areas within your company and read and learn.
 Financial knowledge. While it is not critical to know how to read balance sheets
or cash flow statements, it is important to be able to interpret profit-and-loss
statements, ROI, depreciation and how capital expenses differ from operating
expenses. Consider taking online tutorials as a primer on financial statements so
you can operate in synch with your CFO.
 Take business classes. You do not have to take masters level classes to learn
basic business concepts. Consider enrolling in an online university program that
has some first and second year undergraduate classes to fit your schedule.
 Discuss business concepts and seek help from colleagues. Seek out a mentor, or
group of people that you can discuss business ideas and strategies with.
 Search the internet. There are many online forums and blogs that can add value
to your leadership experience.
 Start an Executive MBA Program. This is probably the best and easiest way to get
a good foundation in all of the areas, (but also the most costly). There are several
great schools with very flexible programs including weekend and evening
coursework or accelerated programs that limit your time away from work.
 In house training. Some corporate giants are getting their CIOs trained in
business management fields such as strategic planning, risk management,
financial management and people management.

Looking forward
A CIO really needs to understand what the key business
drivers are for the organization. Business acumen starts
from finance. You therefore need to understand what
drives revenues, what drives profitability and what is
your competitive positioning. You need to have the
commercial skills and also have the ability to take what you do as a CIO and relent
it in business terms to the business stakeholders.

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WHAT’S NEXT FOR TODAY’S IT LEADERS?
Today’s IT leaders would benefit from the application of these 8 essential
leadership methods in order to create a vision for their organizations. Effective IT
leaders need to focus their attention towards business and change leadership.
They need to apply their strengths to issues arising in their organization in a way
that goes beyond the technical responsibility of the traditional CIO role. An
effective IT leader should be able to articulate where and how technology
supports business strategy, pinpointing business change issues and propelling
operational innovation. CIOs need to envision themselves as playing the roles of
business strategist, IT strategist, IT functional leader, technology advocate and
change agent. In other words, effective IT leaders should focus their time and
attention on strategic issues, on external relationships and on the future.

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THE LITCOM RESPONSE
Litcom helps organizations align business strategy and shape IT directions and
priorities. We focus on aligning processes, technology and people to achieve a
strategic vision. We collaborate with our clients on an IT strategy that achieves
value growth for the enterprise. We provide our clients with key IT management
resources that can assume overall or specific levels of responsibility for the IT
activities on a temporary basis. In addition to day-to-day management of IT staff
and operations, Litcom conducts reviews of existing systems and projects,
develops comprehensive profiles of all IT-related projects underway, monitors the
progress of initiatives, organizes IT efforts to support any business process
improvement activities, and identifies and brings forward IT-specific value
propositions which outline either cost saving or revenue enhancing opportunities.

THE LITCOM COMMITMENT
Our commitment and approach to creating an open, partnering environment with
our clients is key to our mutual success. With this commitment, we have been
successful at building enduring relationships. Our people are some of the most
talented, skilled and dedicated in the industry allowing us to provide our clients
with a sustainable competitive advantage by delivering the highest level of
expertise and know-how to get the job done. Our clients benefit from the deep
experience, knowledge and dependability that our dedicated professionals bring
to engagements. We are committed to our client’s success and ensure that we
have a thorough understanding of the goals, requirements and technical
environment.

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