Technology is an essential component in any business strategy. A shared sense of collaboration and engagement is necessary for Chief Intelligence Officers to communicate effectively with the board. Here are some useful ways for CIOs to lead the conversation when speaking about the importance information technology and the board of directors’ impact on the company as a whole.
In almost every organization, technology places an innovative role. You will find technology advancing companies’ efficiency in every location, division, and industry. A solid technological strategy is as essential as any strategy for business. CIOs are often high-performance-based conduits creating change in deploying the various technologies that drive a business forward through development and implementation.
Technology is one of the main drivers of business strategy and imperative to the company.
Change is inherent and fast. Technology responds to the pace leading and influencing strategies for business in every sector and industry. Board members need to understand the importance of influx and changes related to business and technology. Organizations need to go beyond the traditional IT department conversations into more extensive analysis to leverage business growth through technology.
CIOs lead the company’s technological agenda, and while it is absolutely crucial to the way a business functions, many do not get to engage or interact with board members in the boardroom. Every boardroom should have an agenda that includes technology and the CIO to educate and generate awareness into communication strategies that are concerning to the benefit of the company.
Here are some recommendations for including a CIO’s input into strategic conversations in the boardroom by getting more familiar with the impact of technology on growing value for shareholders.
Understanding Technology in the Boardroom
A study by Deloitte found that some of the top 500 S&P high-performance companies were much more likely to have a CIO on the board. More boards need to appoint chief intelligence offers to open board seats to help with the company’s operational performance.
Ways to Progress the Conversation
When it comes to business, things are always changing, which means your board of directors should be speaking regularly about technology issues. According to a survey conducted by Boardroom Inc., only 14% of board members talk with executives outside of the quarterly board meeting. However, due to the rapidly evolving technology and business atmosphere, businesses could benefit greatly from engaging in extra communication.
CIOs can take action so that they can help the board communicate better. By initiating an ongoing technology awareness effort, CIOs are able to study and understand how directors communicate differently about the business, as well as what they value most.
According to Deloitte’s global CIO survey, education efforts are yielding good results. Specifically, the survey found that a high percentage of those surveyed indicate increased interactions between CIOs and the board yield positive results.
Another important topic for this meeting is where to invest your technology time and money. As CIO, you can help the board resist complacency by constantly explaining how technology will drive your company’s success. A good balance is to invest in improving the business today while keeping an eye on the future. And share your long-term vision with everyone in the company.
Top 3 Tips for Facilitating the Strategic Conversations Involving Technologies
Management teams can initiate ongoing strategic conversations about technology through three primary channels: board members who are well-versed in technology, management-level technology committees, and management-level subcommittees.
Trends in Technology for Boardroom Discussions
CIOs are talking to directors in order to bring a new technology discussion to the table. They are trying to spark conversations about how new trends can enhance profits and decrease costs. These emerging innovations are being used in a variety of industries.
To start a technology discussion with his/her team, CIOs can use one-on-one meetings with directors as an opportunity to discuss emerging technology trends.
Recommendations for Key Successes
Rapidly changing business and technology environments affect CIOs and boards. As a result, the board has to provide effective oversight of technology issues and investments made by the CIO. Technology can drive both ends of the corporate mandate — safeguarding the company and increasing shareholder value.
This change in business and technology environments affects how boards examine their relationships with CIOs.
CIOs can help boards gain a greater awareness of technology by providing a technological education. Partnering with CIOs, the board of directors will be able to take a more informed stance on technology-related matters.
In order to ensure that their money is spent wisely, boards need to be educated on technology. CIOs can help boards by partnering with them. In this way, board members can lend their voice on issues that impact performance, risk, and business strategy.
At most companies, executives have never had a meaningful conversation about technology. They have never discussed key dimensions or metrics. They usually aren’t aware of the appropriate allocation of technology investments — defensive or offensive. Research shows there is no better time to start than now.