CIOs Get a Seat on the Board
In France, involving IT
leaders in top-level strategic
decisions is more than just
a good idea. It's a powerful
way to move CIOs closer
to the business.
By
Alan Joch
In a quest to serve the enterprise, IT
departments have always struggled with
their organizations' business units for
common ground. But a growing number of
companies have come up with a powerful
way to resolve this issue. They're putting
their CIOs on their boards of directors,
giving these IT executives close access to
the enterprise's most strategic decisions.
That's certainly the case in France. There,
CIOs at nearly 70 percent of companies sit
on their boards of directors, finds a recent
survey conducted by Vanson Bourne, a
market research company. That's the highest
level anywhere in Europe, the survey found;
on average, European CIOs sit on the boards
at only half of all companies.
Some in the industry say the motives are
purely practical: Regular input from senior IT
managers leads to better business decisions
on the part of nontechnical executives —
and vice versa. "We have a bottom-up and
top-down flow of information about what
systems people need to do their jobs better,"
says Laurent Allard, CIO of Logica plc, a
U.K.-based IT and business service provider.
In fact, CIO Allard reports directly to
Logica's CEO of global operations. He says
the high-level positioning allows him to
"better articulate how IT solutions align
with the company's business strategies."
After all, he adds, "You are closer to the
definition of those strategies."
Board-level participation of French
CIOs isn't consistent across all industries,
however. Philippe Compagnion, an
executive recruiter with Paris-based Egon
Zehnder International, says board-member
CIOs are most common at French retail
banking, insurance and telecommunications
companies, followed closely by corporate
and investment banking firms. The
reason: It's in these industries that French
executives consider IT most integral to
the development and delivery of products
and services.
A generational shift is also making a
difference. In France, many CIOs have professional
experience that includes not only
IT, but also other disciplines, thanks to stints
as divisional or product-line managers. "The
new generation of CIOs in France has a profile
in financial management," says Alain
Ptrissans, Associate VP of Consulting at
IDC France. "They're not pure technical and
IT specialists."
Richard Valenti, CIO of Generali France,
agrees, but cautions his fellow CIOs to use
their access to business leaders wisely. As
the IT leader of a subsidiary of the Italian
company Generali Group, Valenti frequently
presents to the corporation's president and
management committee. "IT people need
the support of the board, but to get that
support, they must explain in plain language
what they are doing," Valenti says. "Years
ago, people spoke about IT being like a tribe
with its own language. Companies today
accept that separation less and less."
Logica's Allard says plain speaking can
be influential for both big transformation
projects and in more subtle ways. When Allard
joined Logica late last year, top managers were
cutting costs to weather the recession. At one
board meeting, some managers wanted to cut
spending on Allard's plan to expand customer
relationship management (CRM) systems.
But Allard, able to speak in terms the business
leaders could understand, was able to push
through his vision. That's an approach that
can extend to CIOs anywhere in the world.
ALAN JOCH is a business and technology
writer.