By Business success depends on a good CEO-CIO relationship. Here's what it takes to make that happen.
CIO.com
February 01, 2002 — CIO — Whether your title is CIO, CTO or some other variation, one of the highest-stakes business relationships you have is with your CEO. In an era in which technology has become a key strategic tool, an effective working relationship between the head of the company and the head of technology operations is vital to business success.
As CEO for the Vanguard Group, I’ve long been a believer in technology. My interest in IT dates back to the early 1980s, when I was involved in budget planning for Vanguard. Though we are an investment-management company first and foremost, it was clear then that Vanguard needed to transform itself into a technology company as well. Today, technology accounts for more than 40 percent of our operating budget. This year, we’ll spend 20 times as much on systems development as we do on advertising. Technology is a vital competitive weapon and a strategic tool for Vanguard. In fact, no single part of our company could function without IT.
I’d like to share my thoughts with you about what makes a successful CEO-CIO partnership, but first I should make a few disclaimers about my views on IT. As the head of an investment-management company, I see business issues through service-industry glasses. I also have a bias regarding organizational structures. Our company takes a centralized and matrix approach to technology. We believe that there are powerful organizational advantages to structuring IS as a "center of excellence," with key personnel also reporting to business areas.
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