The McKinsey Quarterly
The McKinsey Quarterly Chart Focus Newsletter
September 2006 | Member Edition


The value of IT leaders

Many companies rely heavily on IT governance systems to unite IT and business managers and help them make effective IT investments. But committee meetings and processes don't command as much attention as a trusted colleague can, so governance systems by themselves come up short when companies need to make tough trade-offs among technology choices. Companies need a single credible IT leader who can strike the right balance between using governance systems and working directly with colleagues to forge a common vision. Relationships between IT and business units at companies with trusted IT leaders differ strikingly from the same relationships at companies that lack them.


 

 
To find an IT leader who can build trust with both business executives and the IT staff, companies must often appoint nonstereotypical CIOs. One large global energy group rotates business executives into the role for a set period to ensure that a person with business skills runs IT and that the business units are then seeded with IT-savvy managers. For more on what makes effective IT leaders, read "What IT leaders do" (Web exclusive, August 2005).



Also of Interest

CIO spending in 2006
Web exclusive, February 2006
A McKinsey survey of 77 CIOs suggests that in 2006, IT leaders plan to restrain operating costs while improving security and reliability.

Leadership as the starting point of strategy
2005 Number 1
Many companies fall short of strategic objectives because top managers underestimate the challenge of finding the right leaders for each opportunity and then convincing them of its potential. (Premium)
Next-generation CIOs
Web exclusive, July 2004
To make the most of technology investments, IT leaders must delegate some operational duties and help the leaders of business units to identify and use technologies that will yield real business benefits.


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