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Leadership

What Ever Happened to Critical Thinking?

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As businesses grow, so do the size and complexity of their problems and challenges. To solve those complex challenges and problems, leaders need to employ more critical thinking from themselves and their teams.

However, the world seems to be lacking critical thinking at a time when businesses need it most. And the lack of critical thinking isn’t just anecdotal tales told by frustrated leaders. There’s research to back it up. So, whatever happened to critical thinking and can we get it back?

Critical Thinking, Defined

First, let’s address the big question: what exactly is critical thinking? In the broadest terms, critical thinking is the ability to think reasonably, removing your own emotional attachment and personal bias.

Critical thinking requires individuals to rely on data and take the steps to analyze and evaluate data to make a decision. According to the Foundation for Critical Thinking, “critical thinking is self-directed, self-disciplined, self-monitored, and self-corrective thinking.”

It’s important to note that critical thinking helps you to avoid doing things simply because they’ve always been done a certain way or because a certain way seems easier or faster.

What has happened to critical thinking?

Has there really been a decline in critical thinking? There is research that shows this is a reality for many higher education institutions and businesses.

A Wall Street Journal analysis of standardized test scores given to freshmen and seniors found that the average graduate from prestigious institutions show little or no improvement in critical thinking over four years.

That trend extends into the business world. In May 2016, a survey by PayScale and Future Workplace found that 60% of employers believe new college graduates lack critical thinking skills, based on a survey of over 76,000 managers and executives. Additionally, about half of employers rate their employees’ critical thinking skills as average or worse.

There is no one main reason for this decline in critical thinking. Most experts attribute it to a combination of things.

To start off with, there is not a clear definition of critical thinking and therefore, many professors, instructors and employers lack a way to objectively assess critical thinking skills. And many teachers struggle to teach critical thinking so many simply don’t do it. The Education Post found that only 1 out of 10 educators teach critical thinking and that teacher usually teaches at a selective school or to a select group of students.

And some experts say technology is one of the reasons for this decline. According to research by Patricia Greenfield, UCLA distinguished professor of psychology and director of the Children’s Digital Media Center, Los Angeles, as technology plays a bigger role, our skills in critical thinking have declined and our visual skills have improved.

Anecdotally, I think it’s important to point out that a decline in critical thinking in business might not be the actual decline in critical thinking. Rather, the decline in critical thinking is due to a lack of opportunities (or ignoring opportunities) to encourage critical thinking.

Many businesses are only looking for the fastest (and sometimes cheapest) way to a solution. Such an approach is an anti-pattern for critical thinking. When you’re always looking for shortcuts, you’re cutting out the time to critically think. When you’re too quick to say something isn’t working and that you need to change directions completely, you’re sabotaging critical thinking.

All of this probably sounds like bad news for those looking to increase critical thinking in their organizations. The good news is that critical thinking can be taught and if it’s encouraged enough in an organization, it will be taught!

How to Improve Critical Thinking

Contrary to many opinions, critical thinking is not a soft skill. It can be learned and it must be practiced to be developed. Here are a few steps that will help you tap into critical thinking.

  1.  Gather more and better data
    Critical thinking is the ability to remove your own bias from problem-solving and the best way to do that is to look at the data. Many organizations are trying to make decisions with poor data. As an organization, you need to prioritize having as much high-quality data as possible. And as the IT organization, you must collect this data and ensure that the organization is using it to its fullest ability.

2. Question assumptions
This is the most important piece to critical thinking — and it’s often the most difficult part. Don’t just look at the “what” of the problem. Ask about why it’s happening. Be wary of the assumptions you may bring to the table and when you come to a conclusion, ask yourself if you’re basing the conclusion on the matter at hand or on previous experiences. Additionally, it’s important to separate data and facts from assumptions and inferences. Often, leaders will make an assumption and then treat it as fact. Dig into the why and use data to protect yourself from inferences.

3. Look for opportunities and potential
Critical thinking isn’t about shutting down opportunities or ideas. It’s about seeing possibility and potential based on data and without assumption. For example, failed initiatives and major service interruptions are opportunities to revamp processes or rethink strategies to create something better.

4. Look for new perspectives
To be a critical thinker, you have to get out of the echo chamber. Engage in active listening when discussing problems and solutions. Engage with and actively listen to colleagues with opposing views in your own organization. While most people dread having to speak to someone who simply does not understand their role, it can be an excellent exercise to obtain new perspectives that can give more context to problems, examine your own biases and spark more ideas. Additionally, as a leader, you may benefit from learning from other industries or experts from other organizations. Be open to new perspectives or ideas from unlikely avenues.

5. Manage ambiguity
Finally to improve your critical thinking skills, get comfortable with ambiguity. We are all operating in rapidly changing environments. The data we have will change. Your own perspectives will shift, as well the perspective of others. You have to be comfortable identifying that you are making the right decision today, but the way those decisions get made can change in the future. Getting comfortable with this type of ambiguity and being able to practice critical thinking despite this rapid pace of change will help you to make better decisions for your organization in the long run.

Critical thinking doesn’t have to be a lost art. It can and should be encouraged at all levels of the organization – but it must start from the top. If you’re wondering whatever happened to critical thinking in your organization, perhaps it’s time to take a step back to examine your own critical thinking approach.

Is your organization suffering from a lack of critical thinking? Has your organization found ways to nurture and encourage critical thinking? Please share your thoughts!

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ITSM

Don’t Go Chasing Electrons

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One of my biggest gripes about service management is that the work of service management has become synonymous with service management tools. This has really become an Achilles heel for service management. While service management tools are useful, they typically don’t take a value and outcome-based approach to identifying and defining services.

Because of this, many IT organizations have found themselves executing superficial service mapping initiatives that hardly get the complete job done. Rather than first critically think about services in terms of the value and business objectives that must be achieved with the use of technology, they buy and implement a service management tool. Then they use the tool to chase electrons across the network, map where those electrons went and what was found, and call it done.

Here’s why chasing electrons with a service management tool to define services can be the kiss of death to any real service management success.

What Service Management Tools Actually Do

I want to be clear that I am not “anti-tool”. Good service management tools are a vital and necessary component of any successful service management initiative. But those tools only address a part of service management challenges.

In its simplest form, using a service management tool to identify services is an exercise in chasing electrons. This approach focuses on the technology and seemingly puts order to that technology… so you can keep chasing more electrons.

But it’s this use of the tools that frequently causes the biggest problems with service management within organizations. Sure, this approach will find whatever is active on the network. It will group what it finds by application or system. But it also perpetuates the perception that service management is just about the tool… and not how good service management enables and supports the outcomes and value needed by a business from its investments in and use of technology.

Network maps don’t mean much if you can’t connect them to real business outcomes. Capturing what software is found on what hardware does not articulate the business value provided by that technology. An electronic discovery will never find the people, practices, or processes involved (and absolutely critical!) in delivering services within the organization.

What you’re left with is a reinforcement of a gap between IT and the business.

The Consequences of Relying on Tools to Define Services

Here’s what happens when you implement a service management tool without doing the prerequisite work:

  • IT spends a chunk of money on an expensive tool.
  • IT spends a large amount of time and money implementing that tool.
  • Because of the investments in both time and money, IT and the business as a whole feel they need to stick with their tool, no matter if it’s actually solving their problems.
  • When the initial tool implementation is done, IT and the business think that service management work is “done” as well.

Well, it’s not “done”. In fact, it becomes an ongoing issue. And the longer businesses ignore what should be service management, what should really be defined as services, the harder it becomes to fix it. As a result, IT will keep struggling with a reputation of being technology-oriented order takers. Yes, IT does more than configuring routers, writing code, and resetting passwords…but the tools don’t demonstrate that in business terms.

At some point after implementation, IT leaders have to ask themselves, “Have the accomplishments we’ve achieved with this tool helped us improve the value proposition of technology investments for my organization?”

How IT Can Stop Chasing Electrons

Defining services in terms of value and outcomes and implementing a service management approach that is actually about the business (not the technology) isn’t an out-of-the-box solution. But if you treat it like it is, you’re going to get stuck with definitions of services that don’t reflect the business needs of the organization and a burgeoning gap between the business and IT.

  1. IT needs to define services in terms of business value and outcomes

This is a point many would prefer to ignore, but it simply can’t be ignored. You can’t shortcut your way to defining IT services – and do it the right way. Tools will come into play at a later date and they will streamline the work, but they can’t do it without the right collaboration between IT and the organization.

Doing the work to articulate how your services enable or deliver business outcomes also positions IT to evolve as the business evolves. If we’ve learned anything over the last year, it’s that the way we do business can turn on a dime and IT has to be able to adapt to the ever-changing nature of how business does business. You can get ahead of the curve by having defined services in terms of business value and outcomes, then having ongoing conversations with your business colleagues about the value and outcomes needed from investments in technology, not just the technology.

2. IT needs to define the buying criteria for tools

You have to think about the long game with IT tool investments. It’s not easy to do, but it’s what builds the solid foundation of an IT organization that contributes to the bottom line.

IT has to define its tool-buying criteria based on business needs, not what the IT industry is seemingly telling them to buy. Every business is unique and solutions aren’t one-size-fits-all. Engaging key stakeholders to understand technology needs and business goals will help create buying criteria that will shortlist the tools into those that could actually work for you.

Additionally, establishing this buying criteria can help you improve your tool implementations. Often tool vendors or consultants will want you to implement a tool following some predefined technology playbook. But in reality, the best thing for your business is likely configuring the tool differently and in a way that best fits your business.

Before investing in a service management tool, ask yourself:

  • How does this investment answer the business value question?
  • Do we understand the types of outcomes that must result from this investment?
  • Why should our business want to invest in this?
  • Are we prepared to leverage the functionality of the tool?

Don’t Short Cut It

Tools are often marketed as an easy shortcut for your service management issues. But you have to think of investments in service management tools like running a marathon. A service management tool is like having a really good pair of running shoes. It can enable you to succeed. But if you haven’t done a pre-marathon training program, having good running shoes will only get you a few miles into the race – and then you will find yourself struggling. Good shoes alone will not help you complete the marathon.

Just like in running a marathon, you have to do the necessary work ahead of time to prepare yourself to win. You have to do the work to define your services in business terms, ensure you understand and can deliver the needed business outcomes, and that the work your team is doing is aligned with the business. Then, implement your tool and it will work better in the long run!

Good service management is not just about opening a ticket. It’s not just about resolving an issue or implementing a change. It is about how people, processes, and technology work together in a repeatable, measurable, and holistic way to consistently enable business outcomes and value realization by the entire organization. If service management isn’t doing this for your organization, I can help. Contact Tedder Consulting today.

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Leadership

The CIO Role, Reasserted

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After an unprecedented year of change, many organizations are adjusting to a new status quo with technology – and technology experts – leading the way. 

And changing right along with the rest of the organization is the CIO role. With more reliance on technology, remote and hybrid working environments, and more technology-focused roles in an organization, the CIO has also had to adjust to the new status quo.

What can a CIO do to cement their status and reassert themselves into the conversation?

It’s time for the CIO role to reassert itself.

The CIO Role, Reasserted

As technology has become more critical for the daily needs of a business, the role of the CIO has become more fractionalized. New technology leadership roles, such as the CTO, CDO, and CISO, have emerged within many organizations. While these emerging roles may have been responsibilities that the CIO formerly performed – at least at times – the CIO is no longer the only technology leader within the organization. 

But that doesn’t mean the CIO doesn’t play a vital role among these technology-focused roles. In fact, I’d argue that with all the different technology initiatives, it’s even more important for the CIO to reassert their role in the organization. With so many specialized roles, organizations are in danger of more technology silos. So instead of being a gatekeeper or the arbiter of technology, the CIO has to become the connector, especially in this age of technology democratization. 

Progressive CIOs have a deep business acumen and understand how technology contributes to the success of the business. A good CIO brings a broad, holistic view of the business and how technology can impact the bottom line – and the top line.  The CIO can use these specific skills and knowledge not only to support the CTO, CDO, and CISO – but any business leader as well. 

Using this holistic understanding of the business, the CIO has to become the common thread and ensure balance between the different technology roles and business leaders. Instead of Chief Information Officer, the CIO could be more like the “Central Information Officer” and be the driver of all business initiatives involving technology. 

But make no mistake – this isn’t about a power grab. It’s about the idea that the CIOs knowledge of business strategies and technology will strengthen and enhance everyone’s initiatives. For example, business leaders could use the CIO’s knowledge and understanding of how to drive a positive customer experience that IT has gained through the service desk in order to improve their offerings. 

This shift into the Central Information Officer requires all of the hallmarks of breaking down silos: open communication, shared workflows, and driving and emphasizing the achievement of organizational goals over isolated departmental goals.

And to do this, there is one concrete step a CIO can take to begin facilitating connections and reasserting the importance of their role.

The Start of the Reimagined CIO

CIOs can’t afford to wait to start reinventing their role. The longer a CIO waits to start connecting other technology roles, the more siloed and fractionalized the organization could become. 

So where does the CIO start?  

If all companies are now technology companies, and we want to connect how the different parts of the organization leverage technology, then true service management is the way forward. 

But I’m not referring to ITSM of the past, where an organization would invest in a tool and blindly implement out-of-the-box workflows and constructs that weren’t designed with your company in mind. I’m referring to Enterprise Service Management (ESM), an organizational capability for delivering business value and outcomes by leveraging the resources of the organization (including technology) to produce and deliver products and services in a holistic way.

As I mentioned earlier, the progressive CIO has a holistic view of how technology and business functions work together to co-create more value for the company. In order to have that view, you have to understand the people and processes at work. People and processes are what drive businesses forward and combining people, processes, and technology in a clear, consistent and organized manner is the most impactful thing a CIO can do.  That’s why effective ESM is so vital today. 

Implementing a strong ESM approach is a multi-step process. First, if your IT foundation is not solid, you’ll need to clean that up before you will be able to engage other business leaders in ESM. But once you’ve audited and tightened your own workflows and your IT team is working like a well-oiled machine, then you can start to implement ESM in other parts of your business.

And the best place to start ESM is with those frequently executed value streams. This is where a CIO can test their connector powers and leverage other business leaders’ expertise to adopt ESM within their departments. Doing so results in improved transparency and underpins the importance of having effective, cross-functional processes across all parts of the organization.

ESM opens the door to better customer experience, better employee experience, better business outcomes, and better value – for both the organization and its customers. Good ESM also eliminates silos, which can be among the biggest problems organizations face as they try to scale, and truly elevates the organization as a whole.

For many organizations, the CIO saved the day last year when the pandemic hit. But as businesses move forward, the CIO can’t bank on past successes to maintain their leverage in an organization. Reasserting the CIO role requires open collaboration, effective communication, and bringing other parts of the organization together. Strong ESM is the path forward for CIOs to reassert their role within the organization.

 How can ESM help your organization? How can you leverage ESM as an organizational strategy to connect your organization in such a way that drives and enables success?  Contact me today for a free, no-obligation 30-minute chat to discuss! 

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Leadership

A New CIO’s Guide to Mapping Experiences

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Delivering and enabling business value is a large part of IT’s job.  As such, the CIO must track how value flows, not only within IT, but across the organization. 

It may sound easier than it actually is. Because value is tricky. For one thing, it’s not always well-defined. And it often gets lost in day-to-day operations as the business evolves.  This often leaves end users wondering what happened to the value that they were expecting. 

One of the first tasks of new CIOs is to determine what’s driving value, what’s not, and how improved value can be delivered to all stakeholders. But how can you do that? Where do you start? 

In order to answer that question, we need to stop talking only about value. Instead, we need to include talking about the experiences of the customer, the user, and the employee. 

Customer experience

As defined by Hubspot, customer experience is “the impression your customers have of your brand as a whole throughout all aspects of the buyer’s journey.” The customer experience factors into a customer’s view of your brand and it can impact the bottom line. A strong customer experience can increase customer retention, which will reduce marketing and advertising costs. And loyal customers often spend more than new ones as one study found that if a business increases customer retention by 5%, profits can increase by up to 95%. Additionally, according to a survey by Info Quest CRM, a totally satisfied customer contributes 2.6 times more revenue than a somewhat satisfied customer.

User experience

The user experience is very similar to customer experience but it is directly related to the product, application or service. User experience refers to the journey a user takes when they interface with a system whether that is an application, a digital service, a website or a product. In today’s digital world, user experience matters. 88% of consumers are unlikely to return to a site after a bad experience and a recent study found that a well-designed user interface could increase conversion rates by 200%. 

 Employee experience

According to Gallup, the employee experience is the journey an employee takes with your organization and is made up of all the interactions that employees have during their tenure at the organization. The employee experience matters because research shows that companies with actively engaged employees outperform competitors by 147% in earnings per share and happy employees are up to 20% more productive at work. Improving the employee experience can earn your company money. 

The experience matters

Each of these experiences contributes to the overall value that stakeholders derive from an organization and all of these experiences directly impact the bottom line. If an experience is bad, there is no realized value from that experience. Therefore each of these experiences is very important to CIOs because better experiences means better value. 

Luckily, there is a tried and true approach for enabling more value through creating better experiences.  It starts with mapping the current experiences.

Whether you are mapping customer journeys or employee journeys, every mapping exercise will include the same steps. My recommendation is to choose one experience to map and improve before addressing the others. You’ll be able to use the lessons learned from mapping that one experience as guidance when mapping each of the other two.  Also, you can iterate faster when only focused on one experience at a time.

1. Include all stakeholders

This is the first and most important step you can take when mapping experiences — get all stakeholders involved. These stakeholders will want to work with you if they understand how improving experiences will benefit them, so communicate those potential wins. For example, if you chose to map the employee experience, you can explain to HR that mapping and improving this experience can improve the onboarding experience, decrease employee turnover, and increase employee engagement — thus helping HR to hit their departmental objectives.

2. Map the value streams

How is value flowing through these experiences? For example, how does a user realize value from first touch with your website through purchase? What are the steps and who is responsible for each? Mapping the value streams that enable experiences will identify where responsibilities lie, what parts of the organization are involved,  and where there may be gaps or bottlenecks.  

3. Audit workflows 

Once you have the team on the same page, review and audit the processes that underpin the value streams that underpin an experience. What’s going on under the hood of that experience? Approach these audits with an open minded curiosity, and don’t be afraid to ask why a workflow is designed the way it is.  Let your team know that this is a discovery and learning exercise, not a blame exercise, and that you are simply building a clear picture of how work is being completed. Workflows, no matter how well they were designed, have a tendency to ‘drift’ over time. 

4. Embed continual improvement  

Where is the experience falling short or encountering friction?  

This is the most critical question a CIO must be able to answer when it comes to experience.  And it’s a question that the answer is continually changing, due to continual changes in marketplaces, stakeholders, technology, and more. This is why embedding continual improvement within the experience is so important. 

New CIOs have a big opportunity to establish a mindset of continual improvement right from the start. Regularly survey end-users regarding improvement suggestions and feedback.  Develop and maintain a continual improvement log for capturing, prioritizing, and publicizing improvement suggestions. Establish a regular cadence for designing and implementing improvements. Market the successes and lessons learned from continual improvement. Why?  Because continually improving the experience continually improves value realization.

Applying the above four steps will provide great insight into each of the three experiences that are driving value within your organization. Even though the focus of each experience is different, the process of mapping these experiences is the same because they all revolve around people, processes, and technology, and how well each of these factors are working with the others. 

What has been your experience with mapping experiences?  I’d enjoy hearing about your discoveries and successes with experience mapping. 

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Leadership

Is the CIO the Continual Improvement Officer?

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The CIO is often wearing many hats. They have to be tech whizzes and also strategic visionaries. And in my opinion, they now have to be the Continual Improvement Officer for their teams, their organizations, and in their careers.

Continual improvement is about improving the quality of products and services by learning from past successes and failures and making incremental changes over time. It helps IT align and realign its products, services, and activities to meet ever-changing business needs.  Continual improvement can be the key to large-scale growth. 

When done correctly, continual improvement can improve product and service quality, boost productivity and creativity, increase teamwork and create a competitive advantage. 

It sounds simple, doesn’t it? We should learn from the mistakes – and the successes –  we have. But, in a business environment, it’s never that simple. Why? Because many leaders don’t want to admit to mistakes. They don’t want to explore why things aren’t working as well as they should.  They settle for “good enough”.  They don’t want to examine what could be done better because they want to plunge ahead into that next project and hope that people forget about whatever mistakes were made or problems that were encountered. 

For continual improvement to have success, it has to be embedded into the culture of an organization. It has to be accepted – and driven – from the top-down so that everyone is empowered to look at failed initiatives and missed KPIs as learning and improvement opportunities. 

How can the CIO become the Continual Improvement Officer and build a culture that supports this?

Continual Improvement in IT

If a CIO wants to become the Continual Improvement Officer, she has to start with her own teams. One of the most important things a CIO can do then is allocate the time for continual improvement. IT is often (usually?) inundated with day-to-day work. They often are putting out fires or working to meet aggressive delivery deadlines and objectives. There is rarely-if ever- time for that “be back” work that inevitably comes up. 

It’s up to the CIO to ensure continual improvement becomes a standard mode of operation and allocate adequate time to address continual improvement. How? It could be frequent projects or sprints with an objective to reduce technical debt. Perhaps it is establishing a cadence of regular meetings or time to discuss and implement continual improvement initiatives.  Or it could be requiring that teams take the time to reflect on completed projects and initiatives and identify gaps, issues, and what could have been done differently. 

Make these efforts inclusive by encouraging team members to bring their ideas to the table — and then identify opportunities to implement those ideas. Companies with a strong culture of continual improvement implement about 80% of their employees’ improvement ideas, according to KaiNexus.  By implementing the improvement ideas from those that do the work establishes a mindset of continual improvement and encourages the team to identify and suggest further improvements.  It’s a win-win for both the team and the organization. 

Continual Improvement in the Rest of the Organization

IT is only one piece of the improvement puzzle though. To really build a culture of continual improvement, the CIO has to be the continual improvement champion within the rest of the organization and that requires communicating with and motivating other leaders. 

CIOs can share their own continual improvement learnings and lessons. CIOs must be open about the setbacks and the growth from continual improvement activities, and when able, connect how continual improvement enhanced another department’s initiatives. Invite other executives to your continual improvement meetings to demonstrate how building a culture of continual improvement within IT is working.  Offer to provide coaching and the expertise to help those leaders establish continual improvement efforts within their teams. 

Continual Improvement as a CIO

I think the CIO needs to be the Continual Improvement Officer because it will not only improve their organization, but it is a critical skillset and approach that will benefit the CIO’s career. 

Unfortunately, the CIO role has one of the highest turnover rates among the C-suite. According to TechTarget, the average CIO tenure hovers around 4 years. That means CIOs are frequently moving into new environments and navigating new work cultures. The best thing any CIO can do when they first step into a role is to bring an attitude of continual improvement.  Not just for the new organization, but for their own individual actions.

It’s a powerful move to reflect on what could have been done differently in a  past role as you move into a new role. This will help you embody the culture of continual improvement that you want your team to adapt as well. Be willing to address and share your own opportunities for improvement with your team as you begin implementing new initiatives.

What continual improvement successes have you had within your organization? What advice would you give to other leaders working toward a culture of continual improvement? Share your thoughts with me on LinkedIn! 

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Leadership

CEOs, are you making your CIO sick?

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Here’s a scenario that might sound familiar:

The CEO of a mid-sized organization calls in the CIO because times are desperate. The company needs to deploy new technology to increase revenue — quickly. The organization has already invested in a variety of tools and technology… but it’s not getting the job done. Now the CEO wants the CIO to find the right tool, the one that will help the organization, and it needs to be cheap and it needs to show results quickly. The CIO — who up until this point, has had little opportunity, much less been invited, to interact with other departments to identify needs and pain points with the current toolset. In fact, beyond any initial training and implementation of the current tools, the CIO has been relegated to sitting on the sidelines. But the CEO is convinced that new technology is the answer, and expects the CIO to get it done to get the organization back into the black … and the clock is ticking.

Scenarios similar to this one happen all the time in organizations. The pressure is constantly on the CIO, but she is often not enabled to be proactive or even part of the larger conversations with the business.

For CIOs, it often feels like they’re being given a teaspoon of gas and asked to get the company through the end of the cross-country road trip. They’re being asked enormous tasks with little budget or agency over previous decisions. They’re damned if they do — and damned if they don’t.

And this happens over and over! The CIO constantly jumps through hoops… only to land and then have to run back around to jump through it all over again. It’s no wonder that CIO position has one of the highest turnover rates among the C-suite, with an average tenure of just 4 years, according to TechTarget.

The relationship between the CIO and CEO has been fraught in the past and unfortunately in some organizations, that hasn’t improved. Even as the CIO becomes more influential and valued within the organization, many CEOs are still stressing out their CIOs!

For many organizations, there’s a gap in what the CEO expects and what the CIOs need to be able to deliver on those expectations. The CEO is the one with the power to bridge the gap. Let’s address those CEO expectations and how CEOs can give CIOs what they need to meet them.

CEO Expectations and CIO Needs

CEO Expectation: Business perspective.
The CEO expects the CIO to be the bridge between technology and the rest of the company. The CIO needs to look ahead and align technical benefit with the initiatives of the company and tailoring systems to meet business needs. This is absolutely critical for success in any business. Every business needs to use technology to its fullest potential and the CIO is the only person who can ensure that is happening. If the CIO and CEO are unable to fully enable the organization with technology, the organization is at risk of losing business to the competition.

CIO Need: Business enablement
In order for the CIO to have a business perspective, the CEO needs to recognize the role the CIO and IT play in business enablement. The CEO must ensure that their CIO is part of developing business strategies and plans. The CIO’s voice in business matters should be just as important as the voices of other leadership roles. That means the CIO has to be involved from the beginning of strategy conversations, instead of at the end of them.

CEO Expectation: Leadership
CEOs expect CIOs to be self-starters. The CIO needs to be able to motivate their teams and get buy-in from the rest of the organization. Because they often work closely with other members of the organization, the CIO needs to be viewed as an influential member of the organization who can lead the way.

CIO Need: Sponsorship
The CEO can strengthen the CIO’s credibility with peers by providing strategic support. Whether it’s inviting CIOs to strategic meetings or voicing their support of a CIO’s decision, the CEO can help the CIO attain the needed credibility to influence the organization. The CEO can also help the CIO form partnerships with external partners by starting introductions or including the CIO in communications.

CEO Expectation: Vision
The CIOs need to see the big picture of the business. CEOs want CIOs to be visionaries who are constantly moving toward the future vision of the business. The CIO has to buy-in to the CEOs vision and help the CEO turn the vision into a reality.

CIO Need: Vision and Strategic Consistency
However, for the CIO to become this visionary, the CEO needs to formally articulate the vision and mission for the company. The CIO will need to interpret how that vision fits into technology strategy, but that vision has to start from the top. Additionally, the CIO needs consistency and clarity in that vision. If the vision or strategy is constantly changing, the CIO won’t be able to create systems or initiatives to sustain it.

CEO Expectation: Innovation
Turning any vision into reality needs an innovative leader. The CIO should be on the cutting edge of all the trends and continually looking for new and better ways to leverage technology to propel the business. But the CIO also needs to be able to balance innovation and risk. She has to be able to explain the cost trade-offs with every innovative initiative.

CIO Need: Challenge
If the CEO wants an innovative CIO, they need to give the CIO those opportunities to be innovative. Challenge the CIO to use her talents on things that matter to the bottom line of the business. Don’t use her as a task rabbit who can simply pull the business over the finish line. Incorporate their expertise at the start of business challenges.

CEO Expectation: ROI
Finally, the CEO expects — and needs — the CIO to enhance ROI margins and profits. The CIO must contribute to the bottom line these days. Technology is inextricably linked to the success of any business today, so the CIO has to think in terms of ROI.

CIO Needs: Flexibility
The CIO can contribute to ROI, but she needs the CEO to understand the challenges of deploying and managing technology – at least at a high level. The CEO needs to give the CIO the chance to explain the complexities and challenges they face and demystify the technology. Then they need to allow them the flexibility to develop different approaches to solving problems. The CEO needs to understand that some IT investments take time to deliver their full potential value and allow the CIO that space to ensure that value is delivered.

In Conclusion

Now, I don’t think CEOs should give CIOs any kind of “favored status” or special accommodations within the C-suite. The CIO doesn’t need to have her hand held, but CEOs do need to consider the impact of their own actions when they review how the CIO is operating. If there is high turnover in the CIO role, perhaps the first place to look is to determine if there are gaps between the CEO expectations and the CIO needs.

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ITSM

ITSM is More Than Just Numbers on a Spreadsheet

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This article was inspired by Mel Kerner, whose insightful comments on a recent LinkedIn post of mine started my wheels turning about the heart of service delivery.

Measuring and demonstrating the business value of IT is one of the biggest struggles for CIOs and IT leaders. There are thousands of articles, webinars, and commentary on how to demonstrate the business value of IT (I’ve even written quite a few of those articles!).

There are endless equations of metrics, KPIs, budgets, and technology that one can put together to demonstrate the value of ITSM. CIOs are hyper-focused on that bottom line. What does the IT line on the spreadsheet say about you and your organization?

That’s always the question, isn’t it? I’m not here to argue that CIOs don’t have to prove the financial sense behind their decisions on investments and projects, but I am going to pose another question:

What is at the heart of your service delivery?

I can see some of you rolling your eyes at this vague question that can’t be answered with metrics or financial projections. But I think we need to ask it because there is a goal of ITSM that can’t be measured with specific metrics or financial projections.

People, processes, technology… every IT leader has strategized over these 3 words. They are the 3 parts of every ITSM initiative.

We can measure how much technology is costing or saving the business. We can create baselines from which to measure the improvement of the effectiveness of our processes.

We can’t effectively measure the importance of people. We can capture metrics like call volumes and incident response times, but that doesn’t measure the service being provided. It doesn’t accurately demonstrate the importance of that service to the end-user – or to the organization.

This is important because sometimes everything adds up on paper, but IT is still struggling. Sometimes all of the financial plans make sense and the team is hitting its goals for all of its metrics, but users are still unhappy and service is still poor.

This is a very real disconnect occurring in organizations today. According to PWC, 90% of C-suite executives say their technology choices deliver what employees need. But 50% of employees disagree.

Is IT really delivering services if half of the organization don’t believe they have the technology for what they need? Even when the numbers on the spreadsheet are adding up, if the people in the organization are not satisfied and able to do their jobs, IT is not doing its job.

Impeccable service delivery starts with understanding how much that service delivery means to the most important part of service management: the people.

Do service desk agents understand the true value of solving a user’s technology problem? Do they fully grasp the frustration that arises when a piece of technology is getting in the way of someone doing their job?

Studies have shown that there is a direct correlation between employee experience and company performance. It’s no wonder why employee experience has become one of the hottest topics in business today. For IT leaders, this is an opportunity. They can use this focus on employee experience to remind their teams what is at the heart of service delivery.

Consider author Simon Sinek’s famous quote: “People don’t buy what you do, they buy why you do it.”

Does your IT team understand the “why” behind their metrics?

For example, why is response time important?

Is it important because it’s a box to check off? Or is it important because a service desk agent providing a timely response is able to return a user to their job faster so that they can complete their own work faster. And completing their work faster may mean they are responding to a client faster, closing a sales deal faster, or they’re able to start another project. A timely response time helps a user be better, faster, and more efficient at their job.

Or why is recurring incidents an important metric?

Is it important because it’s annoying for the service desk agent to have to solve recurring incidents? Or is it important because recurring incidents damage the reputation of the IT organization and are a frustration for the user? It can cause their mood and productivity to plummet which can then impact their interactions with customers and colleagues. It can even impact their interactions outside of the office. If you’ve had a frustrating day at work, you may end up bringing that home. The service desk can impact that!

IT leaders must talk with end-users about their experiences with IT. They should investigate the pain points users experience when their service calls are poor and the satisfaction they feel when their work is uninterrupted and technology actually makes their jobs easier.

There needs to be a bigger “why” for IT beyond just collecting metrics and impacting bottom lines. There needs to be a heart to your service delivery and it may be as simple as this: Better service delivery improves the day to day lives of your end-users.

Why does all this even matter if you can’t measure it?

The work IT does is often misunderstood and unappreciated. Most service desk agents won’t be thanked by end-users. Feeling unappreciated and inefficient will lead to burned-out agents who deliver subpar service and that can create a ripple effect. Service management is directly related to employee experience, which is directly related to company performance.

The IT leader must constantly remind the IT team why good service delivery matters. IT leaders need to take the steps to dig into the true “can’t-be-measured” heart of service delivery and communicate that to their teams. Ask the hard questions, dig into how users use services and technology to enable business outcomes, and start capturing and pointing out those immeasurable wins, just as often as you count the measurable wins.

At the end of the day, the numbers at the bottom of the spreadsheet will still matter. But the real story of IT goes far beyond the numbers on the spreadsheet. The real story is the one that’s told and heard throughout the floors away from the C-suite. It’s the story that really matters- the story of the employee’s experience.

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Leadership

Are You Prepared to Meet Customer Expectations in 2020?

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In November 2018, I examined a few ways customer expectations have changed due to technology and what organizations, especially IT, need to know to stay competitive. Today, we reflect on how those expectations have changed in a short amount of time.

Customers, technology, new expectations. Let’s start off talking about a company that failed to pay attention to any of those things.

Long before we could access almost any TV show and movie from the simple click of a remote, Blockbuster reigned supreme. Anyone born before the mid-1990s probably has memories of heading down to the video store in hopes of finding a new release or a beloved classic. Of course, you never knew what would be checked out so you had to hope for the best. After you picked out and paid for your movies, you’d head home and watch it almost immediately. Because you had to return the thing a few days later to avoid those late fees!

But then in 1997, Netflix came along. And remember, before you could instantly stream thousands of movies to your TV, you could request certain DVDs online and Netflix would send them to you. And then you could send them back whenever you wanted. No late fees! This was revolutionary and it upended the video rental industry.

But Blockbuster failed to catch on. They failed to innovate. They failed to use the technology that was becoming available to them and they failed to meet the expectations their customers now had for their products.

Today, Netflix is booming and Blockbuster is long gone.

It’s easy to look back in retrospect and point out where Blockbuster failed. It’s easy to wonder how they failed to pay attention to the writing on the wall. But, of course, we enjoy the benefit of knowing how the future unfolded. Blockbuster didn’t recognize the impact of technology and, when I think about it, I can actually understand how they failed. At its peak in the mid-90s, Blockbuster had 65 million registered customers and was valued as a $3 billion company. They probably thought that they had happy customers, millions of them, in fact. They might have assumed that if they could just keep most of those millions of customers happy the same way they had been for over a decade, then they could endure some flashy competition.

The problem was not the competition, though. It was their customer’s expectations and their failure was marked because they refused to pay attention to the changing expectations of the marketplace.

While every industry is different, there are several overarching customer expectations that every organization should know.

Instant Response & Seamless Communication

Consumers don’t contact brands like they used to. They won’t call a hotline or sit on hold for hours. Now, they interact with brands just as they would interact with friends or family, through texting, social media, email or messenger. And no matter how they communicate, customers want an instant response. 40% of consumers expect a customer service response within an hour. (And yes, this means on the weekend too!)

Organizations must have the technology for instant response and seamless communication with their customers. Whether it’s incorporating chatbots, creating auto-response tools or using AI, you can’t afford to keep your customers waiting.

Easy Access to All Their Data

A decade ago, consumers understood if they had to be put on hold while you transferred them to another department or waited while you found their file in the filing cabinet.

But things have changed. Fitness trackers provide consumers with a wealth of data about their bodies just by glancing at their watch. Customers can open up Google, type in a word or two and have answers in seconds. Consumers have almost instant access to data these days. They expect your organization to do the same. They simply don’t have the patience for you to transfer them to the right department, dig for their info or wait for access from a superior to their data. Furthermore, you can’t afford to be relying on manual methods of data entry or note-taking inside a customer’s file. Every interaction needs to be automatically tracked. Your organization must have the ability to easily, securely and quickly access every customer data.

Delivery Times

Amazon changed expectations regarding delivery times. In 2015, 63% of consumers surveyed felt that 3-4 day shipping was fast. In 2018, that number dropped to 25%. And while many small businesses would love to gripe that it’s hard to compete with the biggest retailer in the world, griping will do very little to change the situation. Customers don’t care if they are ordering from a billion-dollar company or from a small shop made up of 10 employees. They expect faster delivery time.

This means organizations have to improve efficiency for every piece of the process that leads up to the actual delivery. From processing the order to packaging, organizations need to improve their process, optimize their technology and push themselves to be as fast and efficient as possible to meet demand.

Device-hopping

Consumers go from browsing on their phones to their tablets to their computers and back again. The experience with your brand needs to be consistent no matter what device someone is on. This means a mobile-friendly website, ordering system and contact forms. Everything you publish and promote needs to be accessible and easy to understand from any screen size.

These expectations are not easy to meet. The pressure is intense for every organization but I encourage organizations to look at more than the expectation but the need behind the trend to stay ahead.

Netflix didn’t succeed because they used technology to mail out DVDs. They succeeded because they understood their customers wanted convenience. Customer expectations are born because organizations pay attention to what customers want and need. Whether its speed, convenience, comfort, customer service or quality, there is a need or a want behind every new customer expectations.

Organizations, especially the IT department, should be listening to their consumers and identifying their underlying needs. If they can do this, then they can identify the best services, create better processes and find the right technology to deliver those services, meeting not only these customer expectations but any expectations that might arise in the future.

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ESM

What CIOs Can Learn From CMOs

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The CIO-CMO relationship has had a rocky history. The two are often at odds with what they need to accomplish and historically, they’ve never spoken the same language.

But there has been a shift in recent years. As marketing became more digitized, more marketing departments became focused on technology and data while IT departments face increasing pressure to deliver tangible business outcomes.

As digital transformation becomes more widespread across organizations, CIOs and CMOs must play on the same team. CIOs and CMOs are perfectly positioned to become a couple of all-star players within organizations – if they learn to work together.

How can CIOs and CMOs successfully work together to lead their organizations into the digital future? It starts with mutual respect, appreciation, and understanding of what each can learn from the other.

What can CIOs learn from CMOs? Here are four important lessons.

 

Customer Experience

Marketers must know their customers. They are deep in customer data, on top of consumer feedback and they keep a pulse on what the consumer expects from the industry. In short, CMOs are experts in the customers and IT can learn from that.

Customers are looking for more personalized support and solutions and self-service options. Technology can give customers all of those things but only if that technology has the right data. Marketing has the data that IT needs to create technology that will improve the overall experience.

Analytics and Testing

There are no silver bullets in marketing – just like there are no silver bullets in IT. So CMOs and their teams must hypothesize, measure, test, iterate and measure some more. CMOs know they have to have fluidity in their testing and launch phases. They also must adjust their analytics depending on a specific marketing campaign and its goals.

IT teams often get stuck in strict processes that leave no room for experimentation or testing. This usually leads to reduced productivity and IT teams end up feeling stuck performing processes that are inefficient. CIOs can take note as to how CMOs choose their KPIs, identify analytics, and use data to quickly adjust marketing campaigns – and apply these learnings c to IT initiatives.

Agility

IT has had a reputation for being slow to respond or quickly deliver new solutions. Marketing can’t afford to be slow or unresponsive to changes in the marketspace, especially in the digital age where things can (and do) change at lightning speeds. IT needs to take note because, in this age, both IT and marketing are expected to be able to react quickly to meet changing business expectations. Success is always a moving target and both teams must be agile and forward-thinking to keep pace with changing demands.

CIOs can learn how their CMO counterparts adapt to quickly changing markets and expectations. Understanding how CMOs prioritize projects, allocate budgets and resources, and lead their teams to hit their goals, even when the strategy or tactics change, can provide CIOs with great learnings in what it means to be agile.

The Language of the Business

This might be one of the most important lessons a CMO can teach a CIO. CMOs have always been measured by ROI. So CMOs have always had to learn to show how all of their initiatives can increase ROI.

IT, on the other hand, rarely had to demonstrate ROI in the past. They were back-office support teams. But that’s changed now and IT must shift from cost center to revenue generator. To do this, they must learn to speak the language of the business and prove ROI.

CIOs should pay attention to how their CMO colleagues pitch their initiatives, explain their results, and the metrics they use to measure success.

The Future of CIOs and CMOs

The CIO-CMO relationship can be mutually beneficial. When CIOs and CMOs work together, they can champion each other’s initiatives, encourage their teams to collaborate with one another, and create inter-departmental workflows and processes so they work more efficiently and with better results.

If you want to develop the CIO-CMO relationship, these tactics can help.

Find a common language
It’s essential that CMOs and CIOs understand how to communicate with one another. That means having open and on-going conversations about objectives and business needs. Both the CIO and CMO need to discuss jargon or what certain phrases mean within each department. If you are able to communicate openly and understand where each other is coming from, you’ll be prepared to take the next steps.

Align CIO and CMO outcomes
After you learn to speak the same language, ensure you stay in-sync on achieving shared goals. Hold joint meetings on a regular basis to ensure strategies are aligned, and share data and findings regarding the critical interfaces between technology and customer experiences.

Facilitate team collaboration
CIOs and CMOs may make the big decisions but it’s their respective team members that do the work. Therefore, the IT and marketing teams must learn to work together as well. As leaders, CIOs and CMOs must create opportunities for collaboration between the two departments such as holding regular co-department meetings, creating joint projects or inter-department workflows, or hosting joint brainstorming sessions.

The digital revolution is changing the way the business does business and it’s impacting every department – not just IT. But in many companies, it’s the marketing departments that are pioneering the use of emerging technologies to lead a company’s digital efforts. For CIOs and CMOs to be the all-star players the company needs, they need to work together and learn from one another.

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Digital Transformation

The Ultimate Guide to Measuring IT Success in the Digital Age

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You’ve probably heard the old adage that “you can’t manage what you don’t measure.” While the saying is technically true, it can be misconstrued, especially in IT.

IT has no shortage of measurable tasks. Most IT organizations have been using the same metrics for decades. KPIs like cost per ticket, ticket close time, user self-service completion rate and technician resolution are popular metrics that many CIOs use to determine the success of their IT organization.

But do those rates tell the real story of what’s happening in IT? I’m going to argue that they do not. In order to succeed in the digital age, CIOs must identify new ways to measure success.

The Problem with the “Old Way”

IT is no longer just a support team. Now IT plays a critical role in delivering services to end-users (read “customers of the business”) and can be a driver of business growth within the organization.
Old metrics simply will not measure success in the digital world. Look at the examples of common IT metrics that I listed above: cost per ticket, ticket close time, user self-service completion rate and technician resolution. These are not bad metrics and there is value in measuring them but they certainly don’t give a holistic view of how IT is contributing to the business.

An IT organization could hit every one of those example metrics but still be seen as a cost center instead of a contributor.
While CIOs understand the importance of these metrics, business leaders like the CEO and the CFO may not understand the importance of them. It’s the CIO’s job to use these metrics to point to the bigger picture and demonstrate how those metrics increase business value.

IT metrics need to also tell the whole story, from historical data and into the future. Business leaders should be able to look at IT metrics and understand where the organization has been and what direction it must take to move forward.

Metrics in the Age of Digital Transformation

Metrics in the age of digital transformation can be summed up in one sentence:

Metrics should connect to end-users and the business.

This appears to be a struggle for many organizations. A Gartner study found that only 31% of organizations have IT metrics in place to improve business operations.

If you cannot connect a metric to the end-user, you will struggle to demonstrate business value. This often requires the CIO to take a step back and look at the bigger picture of the business so that they have an understanding of the entire business model.

Metrics should also lead to definable actions – and those actions may touch several different areas of the business. This is important to note because it is going to move IT organizations away from having a silo mentality. IT touches almost every part of the business. CIOs need to collaborate with other areas of the business to determine where IT plays a role and how IT can provide the necessary resources to produce results.

Once you begin working with other parts of the business to identify where IT drives business value, you can then begin to build actionable process and systems and identifying key metrics for success within each one.

The Future of Measuring IT Success

IT metrics shouldn’t just measure technology performance. They should:

  • Track and trend performance over time
  • Diagnose and understand the underlying drivers of performance gaps
  • Prescribe actions to improve performance
  • Establish performance goals for both technicians and IT support overall

Every organization will have unique metrics but there are some starting points you can use to determine your initial metrics to ensure you’re properly measuring IT success in the digital age.

1. Cost and revenue indicators

Digital transformation is changing operational costs and customer acquisition costs. As technology evolves, pay attention to where those costs are, what can potentially be reduced, and where new business models or revenue streams are generated through leveraging technology.

2. Utilization

IT is often seen as a cost center because of the constant need for tools and technology. It’s important to measure utilization of these different tools and the impact of IT tools on business goals.

3. User experience

Are the other employees in the organization engaged with the tools and processes you have made available to them? What is the general level of productivity and business efficiency in the organization? If the users are enjoying a seamless experience and are able to identify productivity in their jobs because of the tools, technology and processes you have defined then you are able to IT’s role in business growth.

4. Customer experience

Finally, in the digital age, IT has a critically important role in providing the overall customer experience. IT can support the business in projects that improve the customer experience. CIOs need to inquire on how each project they play a role is impacting or enabling the right customer experience.

Pay attention to these four areas as you address new projects. If you begin to align your projects to support these areas, you will be able to identify relevant metrics that align with business success.

The Future is Here

The future of IT is already here. The bots have arrived, customer’s expectations have shifted, and the way we work has changed. So it’s time for your measures of success to do the same. If you are leading an IT organization, work with your peers to take a holistic view of business so you can begin to shift your IT metrics to reflect the success of the organization.

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