CIO Evolution

CIO, August 1, 2005
CIO Magazine is carrying an article by process guru, Michael Hammer, on the evolution of CIOs from being the head of technology, to becoming the process evangelists, process owners, and in the jargon of IBM -- who Hammer uses an example -- business transformation executives. Hammer points to process focus as a role well suited to the IT executive, and one that IT needs to adopt in order to remain relevant in a rapidly evolving business landscape that sees the classic role of IT going into extinction. IT functions are becoming commoditized; outsourcing opportunities loom large for businesses that view their IT organization as an expense; and new applications are giving power to tech-savvy business users to serve themselves. It's change or die.

Relevancy -- that is what IT can gain from becoming process focused. And IT is well suited for the task. IT already has a view across organizational boundaries via the systems they support -- visibility that is required, as processes tend to cross organizational units, or are leveraged from one unit to the next. IT has already encountered processes via systems development and project management methodologies, and via the implementation of ERP packages. Hammer uses IBM as an example of a company that has embedded the process owner role within the IT executive function. Process ownership doesn't mean the execution belongs to the owner -- it means the owner is responsible for ensuring the processes in place add value to the business -- and has accountability for improving those processes or drive adoption across business units. While IT has many process strengths, it does have one weakness however -- change management. IT professionals are not natural change management practitioners. To succeed, "IT will have to change its style. Collegial, creative and flexible -- rather than defensive, pedantic and rigid -- the key word for the new IT organization is collaboration."

This issue of CIO magazine also has a pretty good article that harks back to my previous life in the Supply Chain industry. Check out the Perfect Order: Achieving the Holy Grail of "perfect orders" involves more than just plugging data into software. Companies must also restructure their supply chain processes from end to end. Now you understand my enthusiasm for Hammer -- having lived in Supply Chain for most of my career, I've become quite a believer in business process adoption.

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