TJ - The Publication for Learning and Development

Key issues for CEOs

By Sue Mennell (05-03-2007)
0 Comments Comments
Article Rating:

Poor Best

Email to a friend | Print Version

Learning and Development News - Key issues for CEOs

The report is based on the analysis of CEOs and CIOs who successfully delivered IT-led change in private and public-sector organisations ranging from Tesco and NHS Logistics to Astra Zeneca and the RNID.  It comes in the wake of research suggesting that 74 per cent of IT projects failed in 2005 – the same proportion as in 1980.

The report explores how leaders can create strategic value from effective IT change and secure employee commitment to change programmes.   Published in partnership with BT, Deloitte and Serco Group, it also outlines aspects of effective leadership behaviours that CEOs should adopt to drive change and calls on the CEO community to question their own understanding of the strategic implications IT can offer business.

Key issues for CEOs to tackle are:
• how to create long-term transformational value rather than implementation of one-off IT projects
• the need to build capability for ongoing change so that IT shapes new business models instead of being the business model
• how to establish a climate of open communication so that employees understand what is expected of them and stakeholders know what to expect
• the need to manage risk with confidence
• recognising the need for personal IT capability and learning about new IT issues so that IT change is driven from the top-down.

The research was carried out in association with the British Computer Society and Change Leadership Network and involved the systematic review of literature covering more than 1,000 IT projects and detailed interviews with 20 CEOs and CIOs.  It reveals that:

 - many CEOs have limited interest in developing personal knowledge about technology, despite accepting its value in today’s economy
- too often, responsibility for change is passed from the CEO to technical specialists and the strategic value is ignored or misunderstood
- change programmes often become ‘tired’ after 18 months, but CEOs are failing to rejuvenate them.

Mary Chapman, chief executive of the Chartered Management Institute, says: “There are too many examples where large amounts of money have been written off with little achieved.  Often it is due to the ambivalence of senior executives who leave their CIOs and IT managers to explore the options and take the appropriate action.  This risk inherent in this approach is of a leadership vacuum.  CEOs who fail to provide strategic direction or show personal interest are unlikely to create the drive and inspiration in others that is required change to succeed.”

Recommendations coming out of the report include an initiative to start the debate about the strategic value of IT through a series of CEO-dialogue groups.  Plans are also underway to create an open source online tool to support on-going learning.

Image: Andy Green, CEO of BT Global Services.

Back to top | Current TJ

 

Readers Comment

Comment on this story here >

Be the first to comment on this news story

 

 

Articles from this Issue