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IT Clan Chat: CEOs & IT

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Thanks all.

Thinkernetter

Thanks Mary, thanks all! Great chat.

IQ Crew

Thanks for leading this conversation, Mary!

Thinkernetter

Thank you everyone for your time and participation today!

Thinkernetter

That said, the CEO's need to catch up on I.T. more because it's only going to get more important.

Thinkernetter

@Hounhosp -- you're welcome. 

@Mary -- thanks as well. 

What kills me is that the reason why I have to study things that devour time is because it's useful to know what devours people's time from a business perspective.  It's kind of like being an alchemist and testing your potions on yourself first.

Thinkernetter

@smk: Thanks for sharing this, it is very valuable to me!

Thinkernetter

Social media devour time.  How true.

Thinkernetter

@smk: I ditto Nicole's admiration. You have a tough job.

Thinkernetter

@Nicole, thanks!  @Mary -- it is, especially since I've developed a serious case of ADD since doing social media marketing.  There's so much data flowing in, so much of it is important, and just so much time available.

Thinkernetter

Anyone else have thoughts on CEO's and IT?

Thinkernetter

I have a ton of respect for you and those in your position, smk!

IQ Crew

Ah! Sounds like a tough job, smk.

Thinkernetter

@Mary -- I know I have.  I started in pure I.T. but I've found my true calling is in using I.T. for business.  It's still an uphill battle to get people to listen, so I've found I have to rely more and more on my marketing skills to sell an idea while still having to keep up to date on I.T. so we are aware of threats and opportunities.  It's exhausting!

Thinkernetter

@smk: Can you give us any sense of whether or how you've changed as a person and professional given IT's new importance? Can anyone else here?

Thinkernetter

So it's time for executives and IT to realize that we're not in Kansas anymore. The role of IT has simply become more important than it was -- and more important than many other roles within the firm.

Thinkernetter

@Nicole: "Thank you, I, too, find my topic interesting." As always!!!!

Thinkernetter

Ooo that is an interesting discussion, I'll have to weigh in over there

Thinkernetter

@smk: Right!

Thinkernetter

Thank you, I, too, find my topic interesting.

IQ Crew

Thing is, IT isn't just a back-office function anymore. The nature of IT's relationship to the business has changed.

Thinkernetter

@hounhosp -- paitent, but vigilant.  We need to encourage people move forward.

Thinkernetter

Nicole started an interesting topic here - when did you first interact with the Interwebs.

Thinkernetter

@smk: Agreed that both sides must meet in the middle.

Thinkernetter

@Kim: LOL

Thinkernetter

I feel like a patient sometimes.

Thinkernetter

@Kim, smk: Alright, let's be patients then!

Thinkernetter

@hounhosp.  Early days.  How long has it been since everyone had a PC on his or her desk?  How long has the Internet been important to commerce.  It's all quite recent (if you're over 21, anyway).

Thinkernetter

@Kim -- challenging job!

Thinkernetter

@hounhosp -- I think it's just trying to overcome the old mindsets.  It's going to be a gradual thing.

Thinkernetter

@smk: A friend of mine describes his job exactly that way.  He explains IT to management.

Thinkernetter

@Mary -- that's what I was thinking... but then we go to the original point:  it means CEO's need to learn some I.T., I.T. needs to learn some business.

Thinkernetter

Why does the divide persist then? The CIOs not playing their part well?

Thinkernetter

yay parties! treats for everyone!

Thinkernetter

@smkinoshita: Well, the CIOs can be this kind of liaison in larger companies. In smaller ones, someone else must do that.

Thinkernetter

Parties are overrated.

IQ Crew

@Kim -- maybe what we need are "translators", eh?  People who speak enough I.T. and enough marketing and business to be able to quickly translate the demands of one into the requirements of the other.

Thinkernetter

When people learn that IT is not fixing computers like office management is fixing the fridge... Then they can be invited to parties.

Thinkernetter

That sums up the problem perfectly.

IQ Crew

More seriously, what we have is a hangover from tradition.  Marketing has always been central to an enterprise.  Legal and regulatory has been unavoidable for years.  But IT has historically been something more like Facilities.  Office management, factory maintenance.  The transition into being a vital part of business planning is not going to be painless.  I mean, the factory guy isn't at the C-level.

Thinkernetter

Right, to Kim's point, obviously we all agree that IT should operate out of an underwater cage and speak only in tongues and that CEOs have to learn tongues. Right?

IQ Crew

@Kim: Actually, I am sure that's the attitude that some folk have had re: IT in their organizations. Not constructive.

Thinkernetter

@Kim: Why that?

Thinkernetter

In the case of Hundai Capital, for example, the CEO finally saw that he needed to halt the development to too many apps.

Thinkernetter

I think IT should just be located off-site somewhere and not invited to social events (just trying to keep it contentious).

Thinkernetter

Well, IT needs to communicate to the CEO that security is a priority. The CEO needs to see that he or she must decide to set policies that support that. The CEO must enlist IT in question and answer discussions to find out what policies need to be put in place.

Thinkernetter

IT is still IT's job, but the CEO is mistaken if he/she thinks it's OK to maintain ignorance about IT's priorities and practices.

IQ Crew

don't know why it has to be an either or kind of deal. IT would benefit from learning to speak the language of ROI while the C-suite would learn about networks and the need for infrastructure investment, allowing more effective decision making. The line between geeks and business is not a productive one

Thinkernetter

@MJ: Alright, with your answer to Paul...

Thinkernetter

@Mary: o.k I can understand it now from that angle

Researcher

@Paul -- not being aware of the trends in I.T. means missed opportunities = lost profit.  It means being more vulnerable to I.T. risks = lost profit.

Thinkernetter

@MJ: But it depends on what you mean by  "the basic requirements"...

Thinkernetter

@Paul: I'm not saying the CEO must learn IT; just that the CEO must understand IT's priorities and what is required to meet them.

Thinkernetter

Paul, what do you mean what's the incentive?

IQ Crew

@Paul -- easy.  Ignorance costs profit.

Thinkernetter

@MJ: I agree with "the basic requirements"..

Thinkernetter

I think it's mostly a mindset.  People learn what they're interested in.  So we need to learn how to teach business in a way that makes it interesting to I.T., and I.T. in a way that's interesting to people focused on business. 

And I agree Mary -- the CEO should be prepared to learn whatever is needed to make the business succeed.

Thinkernetter

@Mary; u can't say that. What is the incentive for learning IT?

Researcher

CEOs who can't learn the basic requirements of IT probably aren't suitable for the top job.

Thinkernetter

And some geeks don't understand that they can't change society.  Not everyone has the time, energy or interest to be as educated in I.T. as they are.  So yes, that makes them vulnerable to hackers... but that's like saying that we all need to know martial arts because otherwise we're vulnerable to being attacked on the street by those who know how to fight.

Thinkernetter

@hounhosp: I'm not sure I agree. CEOs need to be quick learners regarding the basics of all parts of the business.

Thinkernetter

It is easy for for IT to learn some business skills than for the CEOs to learn about IT 

Thinkernetter

The other part of the problem is that not enough geeks can speak business.  And it's also a required skill-set, because you get less problems when the people who do the work understand the purpose.  I see some geeks who complain about the way things are done because the users don't understand enough I.T. -- but that is THEIR problem because from a business perspective it will cost too much to school everyone enough to use more complicated software.

Thinkernetter

in the up and coming business leaders is it really that hard to expect that they have at least a passing familiarity with information technology?

Thinkernetter

@smk: not the other way around?

Thinkernetter

@smk:  And this is probably a generational thing.  Companies appointing CEOs from an older age group aren't going to easily find that combination.  Wait ten years.

Thinkernetter

@Kim -- a business/marketing background needs to change to include at least some basic I.T. skills.

Thinkernetter

@Mary: "But I think in a midsize firm, it's probably fine and even advisable for IT to answer to the CEO."  That is what I'm accustomed to, actually.

Thinkernetter

Right, Kim. IT is becoming increasingly important and it's perilous for CEOs to maintain a hands-off/what-do-I-know approach. But the IT team needs to be competent enough to not rely on the CEO's quick understanding of IT and security for direction.

IQ Crew

Or even better, "You know those stories about Anonymous?  They could break into our database easily and if the data gets out we're facing a 4 million dollar lawsuit, about 6 months worth of PR work to help repair the damage, and an extra million to get the security upgraded fast.  Here are the options to address it..."

Thinkernetter

@Mary: I want to belive a sure way forward is to get CIOs who are not computer geeks but also ones that get have complementary knowledge of the enterprise

Researcher

One reason, of course, is that - unless it's a tech company - the CEO will probably have a business/marketing background.

Thinkernetter

I think we would all assume that the average CEO pays much more attention to Marketing (and Legal) than to IT.  The world is changing, and CEOs will need to change with it.

 

Thinkernetter

But I think in a midsize firm, it's probably fine and even advisable for IT to answer to the CEO.

Thinkernetter

I agree with that, Paul.

Thinkernetter

@Paul: I think it depends on the size of an enterprise. For large enterprises, no, it's no feasible for CEOs to run IT.

Thinkernetter

@Paul: True, but there is lots of survey data to prove that CEOs are starting to realize they must get into step with what's going on in IT

Thinkernetter

saying that as a CEO he should be directing IT policies does not sound to me like a long term and sustainable goal

Researcher

@smkinoshita: Well put.

Thinkernetter

@Paul: I think everyone's consciousness needs raising. CEOs need to realize the real role of IT; IT needs to realize it must make the corner office aware of what it does and what it's doing.

Thinkernetter

Let's use a really simple example of say...  problems with privacy with the data stored.  Saying "We have too much personal information that could identify people and it's not very secure" doesn't get people's attention.

Saying "We're risking a 4 million dollar lawsuit if anyone hacks through our poorly guarded back door" does.

Thinkernetter

@Mary: we just can't take Chung's explanation as the gospel truth

Researcher

@smkinoshita: True. In Ted Chung's case, you wonder why IT didn't warn him.

Thinkernetter

I've worked in a litigation environment heavily dependent on IT (in fact more than one, here and in the UK).  In my experience, IT reports to attorneys, attorneys then report to partners.  IT rarely gets a seat in the meeting with the partner.  Of course, this is a professional rather than commercial environment and more hidebound by tradition.

Thinkernetter

Thanks MJ, Paul, Kim. I was saying that IT CAN HELP make business decisions. But you are right.

Thinkernetter

@Mary: so how do we enhance the value of the IT professional?

Researcher

Chung realized that he needed to direct IT's activities. That they couldn't make the necessary decisions without him setting the policies. In some organizations, the CIO would set the policies, of course.

Thinkernetter

@Mary, I kind of see it from both angles, then. I do think the CEO should be on top of what's going on in IT, but my question is why their IT department would be making decisions and mistakes like that.

IQ Crew

I think a skill that I.T. has to pick up is the ability to translate the situation into simple benefits or threats to the business.

Thinkernetter

Now in my case, I'm working in a small business so I can do the follow-up.  Other people won't be so lucky.

Thinkernetter

@hounhosp.  IT does make business decisions.  It doesn't set overall strategy.

Thinkernetter

@hounhosp: Everyone in a company has a decision-making role regarding business issues.

Thinkernetter

"IT has a responsibility to create efficiencies throughout the company, better leverage a company's investments in technology and business assets, and improve profitability by reducing costs. The CIO needs to create a working environment — and a working attitude — that encourages all employees to make good business decisions around IT investments."

Researcher

I think what I've had to do is:

1.  Create a clean, SHORT report that focuses on the benefits.  If possible, my summary should be a single sentence without jargon of any kind.

2.  Follow up said report in person.

3.  Explain the report again in person.

4.  Follow-up the report later to get an idea of timing and comfort.

Thinkernetter

@Nicole: Chung didn't blame IT. He blamed himself for not realizing that what they were doing at his behest -- creating too many applications, sacrificing security for response time, etc., was hindering IT's ability to secure the company's Web presence.

Thinkernetter

The role of IT  is not to make business decisions, is it?

Thinkernetter

Likewise, though, if the CEO or top management thinks of IT as just another low-level department, then partnership is stymied, too.

Thinkernetter

Mary, how much of the problem with Hyundai had to do with the competence, or lack thereof, of the IT department?

IQ Crew

@Kim -- I've been that person.  It is, and sometimes it takes repeated sells to get the point through.

Thinkernetter

@Kim: but the first thing you will want to know is whether IT really  understand the business and demonstrate the ability to make difficult business decisions

Researcher

@Mary, fiefdom is a good word for it!

Thinkernetter

If you live in a silo or ivory tower, you are consciously or subconsciously trying to keep people out, and that turns out to work to your distinct disadvantage.

Thinkernetter

@Mary -- yeah, I'd say that too.  I see the same thing.

Thinkernetter

@smk: You must have come across this - the IT professionals who try to get a seat at the table by being the only person who knows and understands the issue.  That can be frustrating.

Thinkernetter

@smkinoshita: What do you think of Paul Whyte's question as to what inhibits or enables IT to be a business partner? I'd say preserving a fiefdom mentality is the chief problem.

Thinkernetter

I guess, as a CEO, depending on the size of the enterprise, I'd be willing to set goals for the CIO in terms of setting security standards and policies; and I'd want to know about progress and systems for ongoing monitoring.  I wouldn't (I hope) have time to review the policies line-by-line.

Thinkernetter

@smk:Alright, but in some countries it is the "subaltern" who should prove him/herself to the leader.. Do you get the picture?

Thinkernetter

For example, Chung decided it was up to him to determine how and when Web applications would be developed. Too  many apps = too many paths for hackers.

Thinkernetter

@Mary: in your estimation, What inhibits or enables IT in achieving its potential as a business partner?

Researcher

@Mary.  Wow, yes that is a real sign of remoteness.

Thinkernetter

Chung said that he needed to set policies to help IT create adequate security.

Thinkernetter

@Mary sounds like a hard lesson learned, but at least it's learned.

Thinkernetter

In the case of Hyundai Capital, Ted Chung told the WSJ that he realized he needed to actually has IT report directly to him.

Thinkernetter

@hounhosp -- the CEO is the leader.

Thinkernetter

I think it's up to the CEO to figure out how best to work with IT. After all, the CEO is ultimately responsible for the company.

Thinkernetter

@Paul -- the fastest way to evoke change as far as I can tell is "One person does something different and becomes such a huge success that everyone else immediately tries to copy said individual"

Thinkernetter

@smk: And who the "leader" is in this case? The CEO or the CIO? 

Thinkernetter

what is the CIO doing to transform the culture of IT?

Researcher

My guess is that IT would be welcome at the C-level if it can speak the same language as the other executives and if it is fully engaged with the enterprise's broad strategy.  Everyone has a contribution to make to this.

Thinkernetter

the question we should be asking is How does a CIO lead from a business perspective and gain credibility in the C-suite

Researcher

Seems like IT learning business speak is easier than convincing the CEO to learn techspeak

Thinkernetter

@Paul -- admitably, tech is moving so fast and it is hard.  But it's the responsibility of the leader to either get familiar with the new environment or LISTEN to those who are.

Thinkernetter

IT rle is evolving and so too does the mentality of CEOs evolving with regards to how IT is treated within the  workplace

Researcher

This is something I've witnessed over the years.  Highly competent IT professionals you'd never let into a meeting with clients, and highly presentable IT professionals you wouldn't trust to fix your PC.

Thinkernetter

So u can't entirely blame CEOs for the current predicament of IT

Researcher

@smkinoshita: So how can IT break that bad habit of being out of touch with the corner office?

Thinkernetter

Actually, that's another problem.  Major, MAJOR dissconnects between marketing and I.T. at some places too.

Thinkernetter

@smkinoshita: There has been a traditional gap between "geeks" and top management, true.

Thinkernetter

The CMO is the sales guy.  :)

Thinkernetter

two decades ago IT was just a  back-office component

Researcher

@Paul: No! CIOs are C-suite execs.

Thinkernetter

@Paul -- look at how much I.T. there is.  Everything's wired and connected.  I.T. is part of marketing, it's part of transactions, sales, advertising, shipping, accounting....

Thinkernetter

It's clear that a CEO needs to have enough broadstroke familiarity with the issues that s/he can audit whether the CIO is addressing them.  Few CEOs, unless they have an IT background, are going to want to sit on a committee drafting IT policies.

Thinkernetter

@Paul: IT is more important now due to the increased use of online apps and the Web. "Big data," as they say.

Thinkernetter

Paul's here, too, woweeee

IQ Crew

I thought the CIO is basically just the IT guy

Researcher

Part of the problem I see is that a lot of people in management feel they don't have "time" to get schooled on things like I.T.

Thinkernetter

@Mary: When is IT become so damn important corporately speaking?

Researcher

@Nicole -- true.

Thinkernetter

@smkinoshita: True, there has traditionally been a gap between the "geeks" and top management.

Thinkernetter

On the other end of the spectrum, some CEO's are so ignorant that the sell is really, really hard.  It's like explaning the importance of red and green colour to someone colourblind.

Thinkernetter

Can't sell it well enough to the execs, you mean, right smk?

IQ Crew

All: The message seems to be that whether a CEO has a CIO or not, the CEO must get with the realities of IT more than in the past

Thinkernetter

Some I.T. people know the importance of what they're doing but can't sell it well enough to get the changes made.

Thinkernetter

Is the message that a CEO needs to be more hands on with IT, or that a CEO needs to spend more time making sure the CIO is engaged and accountable?

Thinkernetter

@Mary -- actually Hounhosp's got the right approach.  The CEO won't be as interested in making you happy as much as the CEO will be interested in protecting assets.

Thinkernetter

He says he realized that IT security requires policies that only the CEO can establish. For example, policies are the development of Web apps -- sometimes too many apps leave too many doors open to hackers.

Thinkernetter

@MJ: Ok, then!

Thinkernetter

CEOs and IT draw them all in.

IQ Crew

In Ted Chung's case, he says he learned the hard way that he wasn't paying enough attention to IT

Thinkernetter

@hounhosp: It seems the CEO must please you!

 

Thinkernetter

wow quite the crowd today

Thinkernetter

Anyway, Ted Chung's firm wound up sending $100K to the hackers, and the money helped law enforcement track one group in S. Korea; but a second group involved was in the Philippines and outside the jurisdiction of S. Korea law enforcement officers.

Thinkernetter

So, what can I do to please my CEO?

Thinkernetter

Although in Chung's defence... if someone is really determined enough to get at your data, they'll get at your data.

Thinkernetter

Hi, MJ, Nicole!

Thinkernetter

Hi all! Yeah... I notice a real discconect in small business too, depending on the situation.

Thinkernetter

hounhosp, too! Wooo!

IQ Crew

Hi smkinoshita!

Thinkernetter

It turned out that two distinct hacker groups were involved.

Thinkernetter

Chung wound up being shocked when, on a business trip in Denmark this past April, he found out that a caller back at headquarters was holding his data for ransom.

Thinkernetter

Hi Awilliams

Thinkernetter

For sure, Awilliams.

IQ Crew

Well, last week, the WSJ reported that Ted Chung, CEO of South Korea’s largest consumer finance company, Hyundai Capital Services, learned the hard way that he’d been neglecting his IT department.

Thinkernetter

So it seems that there is still a divide between CEOs and IT.

Thinkernetter

Hello hello.

 

 

Thinkernetter

I'm ready to chat all about CEOs and IT.

IQ Crew

We won't be having a radio intro for this particular chat.

Thinkernetter

FYI: We're just going to do this as text, no audio today. A bit of a technical problem on the BlogTalkRadio backend. MJ should be here with her intro any moment.

IQ Crew

Hi everyone

Thinkernetter

Here's where we'll be chatting Monday June 27 about the gap between IT and the CEO in enterprises -- a gap that can affect a company's security and success.

Thinkernetter
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