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IT Metrics - IT positioning at business level


An IT department has to be technology or management driven organization?

This is a key question mark for many CEOs when confronted with the need to bring their own IT organizations to a different level of maturity. If he decides in favor of a technology driven organization then the IT department and its responsible person will be normally subordinated to someone at the Company Board level. In Europe the Finance Director is one of the first and common choices that many companies are following, as historically the Finance Director – CFO has been in charge of large company projects having high financial impact.
If on the contrary the CEO decides that there is a clear need for the business organization to improve the overall IT performance then he will take the decision to bring his Head of IT to the Board level position.

This dilemma differs between regions when comparing the number of companies in Europe having the IT responsible at the Company board level with other companies in USA or Asia regardless of the company size, business complexity or IT readiness. One of the reasons for this situation is very much related to the fact that the starting point for many IT organizations in Europe was from the 80’s when the companies where unexpectedly challenged by the introduction of the IT technology when no business school nor any University was ready to develop and train the students for such complex agenda. As a result of that the IT portfolio and its related responsibilities landed under the financial arena till very recently when some large companies, mainly multinational business begin following other organizational regional models, EEUU based basically. Here is where the CIO role begins to be recognized as a true professional who combines strong management skills with a clear understanding of technology, innovation and business requirements.


As of today onwards all the European companies whether they are large, medium or small business, they have to start changing the organizational paradigm, understanding that the IT management has to be at the same level regarding management responsibility that any other functional business area (Marketing, Commercial, Logistics, Finance, etc.)  and not only because it has increased its business criticality but also due to the fact that there is already a new group of professionals that has been properly prepared to take this challenge. Their core business focus will be information management and technology as for a marketer is to explore new market opportunities or for a financial guy is to properly control de company P&L. However they will have a say whenever there is a jointly business decision to be made at strategic level, helping their other Board colleagues identifying the best, suitable and cost efficient solution for any new business challenge.          

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