I am somewhat dismayed with some of the particulars in the article “The State of the CIO 2008” by Kim S. Nash. The author urges CIO’s to “Forget alignment”, and “Stop Talking about Alignment”. See the article and get a free extended report at: Other quotes include, “I don’t talk about aligning customer service operations with the business”, and “The CFO doesn’t talk about financial alignment with the business. So why say ‘align IT and the business?”
Well, a number one rule is – you do what you say and do what you measure. Consequently, not talking about alignment is tantamount to not doing alignment. Furthermore, all support functions do and must align with the business. Finance must align with the business – it certainly can’t use a chart of accounts that is not aligned with the business. Marketing must align with the business – it certainly can’t spend advertising dollars on something the business is not doing. Human Resources must align with the business – it certainly can’t hire brain surgeons to build rockets. The same is true for IT --- it must align with the business it is supporting.
Of all the support functions of the business, IT is the most uniquely positioned to have the greatest impact on the profitability of the business because it supports not just one function, but every aspect of the business. Every function of the business has some different and unique responsibility with regard to the achievement of the business strategic plan (goals). IT (in addition to its own goals to achieve the strategic plan such as develop the IT infrastructure) has a role in aiding each and every one of the individual business functions in achieving their portion of the strategic plan. Thus when IT is aligned with the business, it leverages every function (including operations – the builder of the product, provider of services, etc) in its fulfillment of its business goal responsibilities. No wonder IT has such a large impact on profitability and profit margin.
The same is true of innovation and ROI. These are important concepts the CIO must keep in the forefront of his/her mind, actions, activities, goals, and focus. Not talking about it or “forgetting about it” is a good way for each and every function (not just IT) to fail.
The data in the article is good, the opinions expressed by the author are questionable at best and certainly unsupported by any data contained in either the article or in the extended report.
What do you think?
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3 comments:
This comment was left on my e-mail instead of on the blog:
I agree with "Stop Talking about alignment". It's been long enough in the talking stage. Those who haven't gotten it by now, and aren't doing it, deserve what they don't get. Silo's are the product of no top management. Too many C's spoil the broth if the Executive Chef doesn't know how to cook. Until then alignment usually ends up in a discussion about whether there's a Heaven, or what it's like, rather than let's decide to go there. CIO's have outlived their usefulness, let's replace them with IS directors, they at least know they have no power.
Gerhard Friedrich
Organization Strategy and Change
Healthcare Solutions
I can't agree more with Gerhard. While talking about alignment is necessary in order to get alignment done -- all talk and no "do" has been the norm for too long.
Many are now indicating that we must "move beyond alignment" to convergence etc. Convergence by any definition I have read cannot be obtained without first aligning.
The primary problem is that aligning is not easy (see previous blog posts for common failure factors) and maintaining alignment is even more difficult. However, it is doable!!! Those that have achieved alignment have and still do reap the benefits including higher profitability, ROI, EPS, ROA, and any other financial measure you might like to use.
Kay Redditt
Kay Redditt
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