CIOs should encourage the board to invest modestly, but steadily, in technology infrastructure upgrades to stave off technical debt and its risks. That “care and feeding” of the organization’s infrastructure is a proactive approach that the board is more likely to embrace than requests for large, one-time outlays.
It’s also crucial that the CIO demonstrate to the board the risks of technical debt and how to address it. Technical debt grows over multiple cycles of technology underinvestment and cost-cutting, resulting in outdated platforms. Technical debt adds risk, and as infrastructure ages and outdated technology accumulates, the benefits of digital transformation slip further out of reach.
CIOs should encourage the board to invest modestly, but steadily, in technology infrastructure upgrades to stave off technical debt and its risks. That “care and feeding” of the organization’s infrastructure is a proactive approach that the board is more likely to embrace than requests for large, one-time outlays.
3. Focus on workforce transformation and new ways of working
Boards have been steadily supporting the organizational focus on building a workforce — and workplace — of the future. They recognize human capital as a key driver of long-term value.
Working from home (WFH) was a generally successful stopgap last year. But as hybrid models emerge in which a majority of staff split their time between working remotely and working in the office, CIOs must develop a long-term plan to manage new risks and new demands on the network—and communicate that strategy to the board. Boards are less interested in the degree of remote working than in the continuity, security and reliability of WFH practices.
Through a more traditional lens, CIOs can also help the board by partnering closely with the chief human resources officer (CHRO). Compared to IT, the human resources function is not always as adept at gathering and analyzing metrics. The CIO can help define, collect and report workforce-related data and KPIs to the board. Workforce oversight is a fundamental part of the board’s remit, and the right data will help it define and develop strategies around skill gaps, reskilling, recruiting and more.
4. Lead on diversity, equity and inclusion
Consumers and investors expect companies to demonstrate commitment to diversity, equity and inclusion (DEI) principles — both as a social good and a competitive advantage. Employee diversity across demographics builds better businesses via the power of multiple perspectives.
CIOs have two opportunities around DEI practices. With staff that’s both globally and cognitively diverse, IT is often the most diverse business unit (with gender as a notable exception). IT staff have less personal visibility in a company, which allows their work to more clearly speak for itself compared to other functions. That provides a potential showcase for CIOs to highlight their progress on DEI to the board and support diversity programs from first-hand knowledge.
The second opportunity is developing and delivering DEI metrics to the board, part of the long-term value dashboard. Data should include staff composition, career progression and other metrics against five DEI categories (age, race, gender, sexual orientation and cognitive diversity).
This will help the board develop a transparent governance structure around DEI, track progress and create accountability. It could also provide an example that might, in turn, drive change on the board itself. Research shows that board diversity, like company-wide diversity, improves its effectiveness and corporate performance.
5. Guide an ESG strategy that drives stakeholder engagement and value
Building a strong ESG strategy has surpassed the need to be a good corporate citizen. ESG factors are now driving growth and competitive advantage, and boards have a responsibility to help companies capitalize on these trends.
The CIO should take the lead in shifting to “green” and/or sustainable data centers and/or cloud providers — and then measure, analyze and communicate the costs and benefits of this transition.
This is another area where the long-term value dashboard can build awareness at the board level by identifying and tracking key ESG metrics. With the right data in hand, boards can define ESG priorities and align them with corporate strategy, a synthesis that delivers the greatest value.
The CIO should take the lead in shifting to “green” and/or sustainable data centers and/or cloud providers — and then measure, analyze and communicate the costs and benefits of this transition.
6. Challenge board composition and effectiveness
Boards must continually evolve to remain effective. They must challenge status quo thinking and refresh competencies and membership as needed. Coupled with ongoing education for board members, embracing change will help the board remain dynamic and aligned with stakeholder needs.
CIOs can help boards stay agile and forward-focused by presenting the right data in a way that can be readily analyzed and quickly acted upon. What’s needed here is not necessarily tactical or operational data — it’s strategic information that gives the board a way to understand the entire business and competitive landscape, reducing the large reporting packets that most boards still use to prepare for meetings.
To help understand what to present to the board at large, CIOs should have open lines of communication with the general counsel (i.e., the secretary of the board) and the chairperson. Those relationships will guide the CIO to gather and present the most valuable and sought-after data.
These actions illustrate the overarching dynamic that a CIO should work to achieve with the board. By understanding board priorities, the CIO can deliver timely and insightful information that adds long-term business value. The CIO now has a strategic role in helping the board chart the best course of action based on ever-changing market conditions.
Summary
The CIO has a strategic role in helping the board demystify technology, capture data from inside and outside the company in real-time dashboards for improved decision-making and drive competitive advantage from emerging technologies. With these efforts, the CIO becomes a valuable advisor to the board.
