The role of the Chief Information Officer (CIO) has undergone significant changes, evolving from a support function to a key player in business strategy and innovation.
Why it matters: To successfully embrace this new role, the CIO must develop skills in effective business communication and persuasion.
- A recent survey highlighted that 66% of CIOs are worried that competitors will outpace them if they do not act swiftly on AI initiatives.
- However, before taking action, they need to convince their organizations that they are the right leaders for this initiative and that their strategies are sound.
Between the lines: Influence is not achieved through a single presentation; it is developed through preparation, proactive relationship building, and a deep understanding of the motivations and power dynamics involved.
- Similar to a startup founder selling multi-million dollar solutions, the first step is to identify the stakeholders who are affected by AI decisions.
- CIOs must engage in stakeholder mapping—a systematic process of identifying and analyzing individuals and groups who can influence or are affected by a project.
- This is the essential starting point for any strategic initiative, providing a visual representation of the complex web of dependencies and influence that shapes decision-making.
Zoom in: The most effective CIOs recognize that building influence is a currency earned over time rather than something that can be demanded in a single meeting.
- They actively cultivate relationships and establish trust well before they need to request significant investments.
- This process involves dedicating time to meet with department heads and business leaders to understand their operations, identify their most pressing challenges, and pinpoint areas where AI can provide solutions.
- By engaging proactively, the CIO shifts perceptions; rather than being viewed as the leader of a remote, isolated technical department, they become a trusted advisor and a strategic partner.
Context: Once strategic alignment is achieved, the conversation must shift to the financial case.
- The C-suite, particularly the CFO, requires a clear and quantifiable return on investment (ROI).
- CIOs should move beyond reporting IT-centric metrics and focus on metrics that demonstrate business value.
- Most importantly, they must show how the initiative will directly contribute to revenue growth.
What's next: The most influential CIOs do not impose solutions; instead, they co-create them.
- The first step is to identify a willing business partner—typically a department head who is open to innovation—and collaborate on designing a pilot project that can deliver measurable value within a year.
- This approach requires the CIO to master lateral communication, actively working to break down the silos that traditionally exist between IT and other functions such as marketing, HR, finance, and operations.
Examples: CIO Karenann Terrell of Walmart framed the company's AI initiative as a necessary response to the competitive threat posed by Amazon.
- Meanwhile, CIO Cathy Bessant of Bank of America connected technological investments to the bank's core value proposition of customer trust.
- CIO Jamie Miller of GE proposed a strategy to create an entirely new business model that would transform GE from a primarily physical industrial products seller into a high-margin provider of data, analytics, and predictive services.
Conclusion: The CIO must excel in two key areas: as a technologist who grasps the possibilities of technology, and as a strategic leader who knows how to persuade others.
- By mastering these roles, CIOs can transcend mere infrastructure management and confidently secure their place at the strategic decision-making table.
- They will lead the AI-driven and digital transformations that will shape the future of their organizations.
Go deeper: Todd Moses and Co. offers extensive training for C-Suite executives, designed to help engage stakeholders while formulating a strategic plan for digital transformation.
