Do you consider the role of the CIO as focusing on creating value through technology, or first and foremost running an efficient IT shop?

This is the question that was posed to a CIO discussion group on LinkedIn. The discussion was extremely lively and there were tons of insightful, intelligent responses favoring both sides of the question. Below is my take on these responses and my reaction to them.

Core IT First, Add Value Second

Many replied that a CIO must focus on running an efficient IT shop FIRST, or else he/she will never have the credibility and trust with the other C-Suite executives and board members to get approval for “value add” activities. There is some truth to this statement. Certainly credibility can be damaged if users are constantly frustrated with unreliable systems and poor support. However, generating business value through technology is not some lofty goal that can only be achieved AFTER core IT processes are perfected. On the contrary, business value should be the driver for all IT activities. For example, suppose some IT systems supporting complex, unique back-office functionality are not running smoothly. A lot of time and energy can be expended focusing on getting these systems to run smoothly. A focus on business value allows a CIO to evaluate the business processes themselves and not just the IT systems that support them. If these unique processes are not differentiators for the business, business value can be generated by simplifying and standardizing these complex processes instead of supporting them with complex IT solutions. Of course, that same CIO will need to be equipped with some good communication and persuasion skills in order to convince some IT consumers within the business to part ways with these pet processes.

CIO Is Strategic, Managers Are Operational

Many comments stressed generating business value through technology as the most important job of the CIO. Many commenters agreed that the business value-focused CIO should delegate operational aspects of IT to a capable operations manager. In other words, the “real” job of the CIO is to generate value for the business through technology while day-to-day operations are a distraction. While I agree the “real” job of the CIO is to generate value for the business, I disagree that the CIO gets to have all the fun! Generating value for the business is everyone’s job – not just C-Suite executives. The next great innovative idea to reach new customers, offer new products, or expand to new geographies may exist in the mind of someone lower in the organization than the executive level. It would be a shame for the business to lose out on these great ideas because the CIO is a “business value hog”.

The Conflict Resolved

Because of the way the question was posed, many of the responses favored one side or the other. Some commenters recognized this fact and pointed out that the question is really a false dichotomy. Many agreed that running an efficient IT shop and generating value for the business through technology are harmonious goals that need not be placed at odds with each other. Running an efficient IT shop generates value. If you truly focus on business value, you will not ignore running your IT shop smoothly. Although the question may not have been perfect, it was good to see so many willing to take a step back and exchange ideas on IT leadership.

Now it’s your turn.

What do you think should be the primary focus of a CIO?