I’m often asked by friends and mentees whether they should make a career change, or be “afraid” due to an organizational change or another major corporate event. Often frustrating to them, my answer is almost always “It depends.”
The truth is the answer to that question is most often not a binary yes or no.
First, changes at the top rarely have a significant impact on the day to day work and job satisfaction of individual employees. Being in the c-suite, we sometimes overinflated our impact or the impact of org org chart shuffling. Yes, we drive strategic direction and significant changes have a knock-on impact throughout the company. But the reality is the top layer in most large companies at most directly touch 5-10% of employees. Ask the best CEO to handwrite the names of employees he or she talked to personally last quarter.
According to an in-depth time study by Harvard Business School professors Michael Porter and Nitin Nohria, CEOs spend, on average, just 6% of their time with frontline teams, only 3% with customers, and 72% in meetings. I would imagine this to be close to the same for many others in the c-suite. I personally began to miss team interaction the higher up in the organization I climbed.
The sad, or not so sad, reality is that hundreds of decisions are made everyday at the top that have little or nothing to do with you as an individual employee amongst thousands of other employees. And some decisions were influenced by executives outside of your chain of command.
Second, unless it is specifically relating to an individual’s power, position, AND perspective (3 Ps), simply moving a function from one individual to another does not necessarily change organizational dynamics overall. Power influences how much air cover your team will have. Position influences budget and ability to spend money on things important to your function. But perspective of the new leader ultimately determines how much of their power and/or position they are willing to leverage on behalf of the new function they inherited. Some CIOs found this out the hard way when their dream of reporting directly to the CEO was fulfilled. They found the move hurt rather than helped their tech strategy objectives when the CEO had little time or interest to focus on technology and their voice was heard less.
Finally, and most importantly, one should never make decisions based solely on any one factor. Be it an org change or a budget cut, an acquisition or spinoff, the impact on your career depends on your specific circumstances across a spectrum of experiences and events. What have you already learned and how much more can you learn within the new environment? Is your job bringing you joy or satisfaction for the most part and, if so, how likely is it that the change would impact that?
The achievements of an organization are the results of the combined effort of each individual. – Vince Lombardi
Having a successful and rewarding career is a key part of your life journey. But it is only a part. Remember that finding life balance requires at least a modicum of joy at work. But it’s also enjoying time with family and friends, taking care of one’s health, and aiming to truly figure out what you as an individual want out of life. Don’t fall for the trap of overreacting to changes that might make for a great press release but ultimately not impact your individual journey.
The answer to all of life’s questions is to some extent, “it depends”, because ultimately it depends on YOU.
2018. The fact that I have to write this blog at all is quite surprising but yes, it is in fact necessary. There are still some companies (and industries) stuck in the dark ages. But, unlike 100 years ago, or even earlier in this decade when Kodak and Blockbuster were struggling (without success) to survive, there are clear warning signs to watch for … look for them and escape before you have an extinct company on your CV.
1. Your IT department is viewed as a necessary evil
It’s extraordinary, isn’t it, that in this tech-saturated world that there are still companies out there where the IT department is about as popular as chopped liver. These companies and their employees see IT as that necessary evil they contact when a PC breaks down, password is lost, or to solve some another niggling problem.
In an era where technology has transformed the way we work, shop and live — and techies are now C-suite regulars and modern-day heroes – the few straggler companies that still don’t get it may want to step into the 21st century and make a few important adjustments.
2. Tech is listed as a corporate function
Is technology listed on corporate presentations as a function along with finance and legal?
With respect to my friends in finance and legal functions whose work is essential to the success of any company, there’s a problem with technology being seen as a function. The reality is that the line between technology and business is blurring rapidly, and, as I have said many times, the term “digital business” is almost redundant. True forward-thinking companies have long ago elevated IT to the same level as strategy or product development – an integrated element of their business model.
3. Tech is NOT included in earnings reports
Imagine if Netflix, Google, or Facebook had an analyst day without mentioning technology. Ok, that may seem farfetched as these companies are fundamentally technology based. But, to my point that all businesses are becoming digital, it’s almost astonishing when IT initiatives, which are all about the quality of future operations and competitiveness, are absent in CEO calls.
Talking too much about technology when you have never mentioned it will of course lead to skepticism, but technology should clearly be a part of your strategy and story.
4. Executives do not have tech objectives
“You manage what you measure” is a common catchphrase. Therefore, company leadership that sees the irrefutable and powerful value of technology will ensure tech goals become annual performance measures for their executives. You could see this as being similar to how adding diversity to annual performance goals has helped some companies change the tide in this area.
One global leader I know has only two unique objectives above and beyond the normal financial and operational measures. Both of them are about enhancing client experience through technology and analytics. They came directly from the CEO. That’s how change starts.
5. Same tactics continue to be used
The definition of insanity is doing the same thing over and over, and expecting different results. Yet, some companies still manage and think about problems today the same way they thought about them a decade ago.
I’m not just talking about moving from waterfall to agile, though techies love to talk about that transition. I’m talking about literally thinking about problems differently. Technology doesn’t simply enable businesses to be more efficient, it has the power and potential to create entirely new business lines. It can disrupt the current model and displace competitors. The problem is that many companies are still looking for ways that technology can enhance an existing model. That’s old thinking!
Watch out for people who stick to the narrow word “enablement” when referring to technology. Let’s talk about new revenue models and EBITDA enhancement instead.
6. Your CIO is NOT on the senior management team
Many studies have discussed the reporting structure of company CIOs. In the United States, a Deloitte study found, 50% of CIOs report to the CEO while globally this figure is 46%. But there are many companies where the CIO reports to the CFO, COO or and they thrive.
Reporting structure does matter but I would argue that structure alone does not determine whether your business will emerge from the dark ages. A CEO that does not understand or appreciate technology, or one that is too stretched to give it focus, could possible make things worse for a CIO trying to drive digital strategy. A tech savvy and engaged CFO might therefore be a much better reporting structure.
What’s most important is that the CIO is seen as a strategic part of the management team. The CIO can report up to the CFO, COO, or CEO — studies have shown that it really doesn’t matter. However, regardless of structure, the CIO leader must be in “the room where it happens” or your business will ultimately falter in our digital age, which continues to transform almost everything with mind-blowing speed.
If your technology leader is relegated to the next level and not a part of critical meetings where business strategy, M&A, and revenue growth are discussed, he or she will be trapped in an enabler role. And your business will struggle to keep up.
Is this comprehensive list? Probably not. Are there some successful companies out there that do not adhere to the above guidance? Yep.
Be well. Lead on.
Adam
Adam L. Stanley
Adam L. Stanley Connections Blog Technology. Leadership. Food. Life.
10 years ago, when IT was still an enabling function for most companies, you’d attend trade shows and conferences and there were seemingly endless discussions about “getting a seat at the table.”
Five years ago, this conversation was relevant for many companies that were recognizing the importance of technology to the business — but still not believing CIOs could actually drive the change.
Today, more and more I meet CIOs that are business leaders and run IT. This is a good thing!
But the next step is crucial. Now we need more CIOs and their direct reports claiming their seat at the table so that companies can do more internal promotion and less external recruitment.
But many CIO-chain reports still don’t know how to claim that seat at the business decision-making table. And my soapbox is for these leaders.
The short version: If you want to be relevant, you must be relevant. Do you know the business deeply and are you clear on the key things you can do to grow revenue, improve profitability and drive results? Make sure you do before you try to pull up a chair at the table!
Here are a few tips for those trying to claim their seat:
Stop trying to be the controller and be a partner
A “corporate IT” function focuses too much on rules and restrictions. It’s where business process can often bury actual business results. It doesn’t ask good business questions, and it tells business leaders what they must do, not how they could do. This leads to business leaders consulting with IT only when they have to, and not when they want to discuss strategy.
How to fix: Go watch HBO’s Silicon Valley Season 3, Episode 2 for a laugh about how “IT guys” talk to “sales guys.” Then come back here and realize this: hardcore business decision-makers want conversations and presentations in terms of actionable results — and they want them in their vocabulary, not yours. If you want a seat at the table, start by thinking about your limitations process-wise. Then invert those limitations into what can be done and re-focus your presentation ideas that way. No executive wants to hear a bunch of process tech-speak about neural nets or back-ends. They don’t really care. They want to know how results will be achieved. So you need to provide that context. That’s partnership, instead of a roadblock. Roadblocks don’t typically get the seat at the table.
Have a point of view
In line with the above, one of the potential reasons for my success getting to the table may be the fact that I frankly don’t know all that much about the details of technology. Please don’t ask me how to build a server or write code. There are so many people who know much more than I ever will. That is ok. Leadership isn’t about knowing everything; many managers miss this point. Leadership is about knowing how to drive decisions and results, and who to engage on each topic that is the subject matter expert there.
How to fix: Have a point of view about how technology drives value for your business, helps you engage with clients and colleagues, and wins work. Bring to the table your perspective of how technology is changing your industry.
Know the business and speak the language of the business
I often joke with my teams that every one of my colleagues I meet in the hall has a figure above their head. The figure represents the particular contribution to EBITDA of their service line or division. In order to effectively communicate your contributions, you must be able to make your argument in business terms — not in technology terms– quantifying the value of your proposed involvement in fulfilling the company’s strategy.
How to fix: Understand the mission of your company, but also understand the two sides of strategy. What do I mean by that? There’s a “big speeches” strategy, where a CEO tends to speak in aspirational words and concepts. That’s for public consumption, the media, and regular employees. Then there’s the strategy the CEO discusses with his/her top lieutenants, which tends to be more specific and focused. You need to understand both sides, because you need the aspirational terminology — that vets you to be a major leader and outwardly face new groups of people — but you also need to know the real deal from the closed door meetings. We talk about “code-switching” in society a lot, and it’s crucial in business. You need to be able to quickly switch back and forth from PR-facing top leader to organizational execution internally. They are different languages.
Sell the business
Never forget that every employee of any company must focus on the end customer. Every one. So, maximize every chance you have to tell someone about the company, its products or services. Try to seek out mentors amongst the business development or client account teams that can teach you how to sell the story. Your first job is to run technology, but wouldn’t it be great if a dinner conversation at a charity event you attended led to a new client?
How to fix: This one is blunt, but simple. If you want the seat at the table or the higher salary, you have to sell or be tied to the bigger clients or deals. Those are the people that get the seats first and keep them in most companies. You can make arguments that it shouldn’t be that way, but it is — and will be for a long while still.
Be social
Business is inherently a social enterprise. Relationships are built over coffee, drinks, and being in the trenches during critical projects or incidents. Because you are in technology, you will spend much of your time in the trenches with other technologists. That is great. Getting to know your teams is important. But be sure to spend some time with the colleagues in the business. Be sure there is balance as you don’t want them to think you are just the party guy or the smoozer!
You’ve tried to communicate the value you bring to the company, but executives at your company just don’t get it? Speak Up. Challenge yourself to be more social, to get to better know the business, to sell the business. Have a point of view and make it known. Don’t ask for a seat at the table. Claim it!
Always remember: Business leadership tends to be driven by measurement, value, and relationships. If you understand your value and the corporate value prop, that’s Step 1. Great. If you understand measurement as a whole and how your company tracks and measures goals and KPIs, that’s Step 2. Awesome. If you invest time in building relationships in and out of work — hitting goals, but also networking and schmoozing and putting yourself in front of the key stakeholders — that’s Step 3. Now you’re ready to claim a seat at the table.
“If you read the papers, you’ll see that people are hired for what they know, and they’re fired for who they are. Hiring for knowledge is a mistake management makes all the time.” — Unattributed, World 50 Member
So, I heard it again the other day. What, you ask? I heard the famous “he just wasn’t a good fit” for the team. The problem is, I get it. But that word has always driven me crazy because it was often used to deny people of different racial, religious, and gender backgrounds from roles. “Not a good fit” meant not part of the same country club or socioeconomic circles. But, as much as I hate the word, “fit” does matter. But in my case, I choose to define fit as having similar character and values. Character and values transcend race, gender, religion, etc. — and they are very important in hiring decisions. The fact is, outcomes are greater when you hire employees with values in sync with the values you hold as a manager, and more importantly, with the general values of the company. You are adding valuable people and you want them to be happy, engaged, and aligned.
Why this matters
Lots of really smart and really successful people talk about this yet some of the lowly C-suite mortals like me often neglect it.
Sir Richard Branson, billionaire mogul of Virgin Group: “If you can find people who are fun, friendly, caring and love helping others you are on to a winner. …. Personality is the key.” Elon Musk, founder of SpaceX and the increasingly ubiquitous Tesla car: “[My biggest mistake is] weighing too much on someone’s talent and not someone’s personality…it matters whether someone has a good heart.”
These men are incredibly professionally and financially successful, as are their organizations. They recognize that values tie to performance. In fact, character and values oftentimes tie back to a new hire’s attitude. Mark Murphy, the author of Hiring for Attitude, conducted a study based on 20,000 new hires. He found that roughly half failed within the first 18 months on the job, and 89% of those failures came from problems related to attitude.
Character and values set the culture of an organization. Character and values drive the attitude of an employee.
See how this is crucially important?
Of course, hiring for character and values is tough, and it’s understandable why so many people do not intentionally do so. The way most companies set up headcount protocols means that when a role is open, a crucial metric becomes “time to hire.” When you combine the regular daily responsibilities of HR and hiring managers, you can have rushed processes based on video screens, 30-minute interviews with mostly generic questions (“What’s your biggest weakness?”). Furthermore, applicant tracking systems weed out potentially good candidates based on keywords and character does not always come through in print or catch phrases. Hiring for character and values takes time, and time is our most precious asset.
So, is it achievable?
How can you hire for Character and Values
Here are some quick tips:
Use LinkedIn recommendations.
I look closely to see what people have said about a key recruit. How does he or she lead, make decisions, and team with others? Is there a high level of energy and passion in her effort? I look for works like “trust”, “integrity”, and “fun.” If they do not have any, ask for references from a broad group and ensure you get detailed feedback on character and values. References are hard because they’re very curated — obviously if a past manager didn’t like an employee, he/she probably won’t post that on LinkedIn because of professionalism. (And if he/she does, the employee has the option not to show it publicly.) But looking at crucial words is valuable.
It’s ok to have a social component of the interview process.
Doesn’t have to be drinks, but if you are going to be in the trenches with someone, you must spend time with them outside of the office. Over coffee. A breakfast. Drinks. Plan, within HR rules of course, an interaction outside of the office where the plan in not to talk specifically about the company for which you are hiring. Talk about what matters to the potential employee. What makes him or her happy?
Ask probing questions about the “how”.
Resumes and bios often highlight the “what” and I find it surprising when interviewers spend half or more of an interview asking for a restatement of what is clearly written. I want to know how you delivered something as much as I want to know what you deliver. John Wooden is one of the most successful coaches of all-time in any sport — nine NCAA titles, 88 straight wins at one point — and a major psychological research study done around his processes showed that he overwhelmingly focused on the “how” as opposed to the “what.” Again, model success — it can work in hiring.
Always ask what they disliked.
It’s tough, and yes you will get canned answers sometimes. The famous “I just hated that guy that did not work to my level of expectations. It is hard for me to deal with people who have less of a work ethic”. BS. We all read that same book. I REALLY want to know who or what you didn’t like. If a lot of what you DO NOT like exists in my company, we would both be miserable if you join me. You would not be happy and therefore your performance would be subpar and thus I would not be happy. Work is a two-way street: you get money in exchange for performance, but the performance is within a context of co-workers, clarity of information, job description, skill set, and more. If you know you’re not a good fit for certain types of offices or organizations, be honest about that. You hurt everyone — from yourself to future co-workers — when you try to fit a square peg in a round hole.
Have them meet their peers.
For some reason, early in my career I came to expect to meet several peers during the interview process. They were interviewing me as much as I was interviewing them. As I advanced, I noted that these kind of interactions became more sporadic. If you are hiring, make sure to add a couple of peers to the interview schedule. If you are contemplating joining a company, demand to speak with your peers. Quick story about this from a collaborator of mine: after business school, he interviewed for a job based in Texas. He met a few (2-3) of the Texas-based team. Within a week or two of starting the gig, though, he realized he pretty much only worked with the Seattle-based team of the same company. They had barely met him and had no context for him, and he was sitting 1,200 miles away from them. That creates reduced productivity and bad teams, which shouldn’t be a goal for anyone. So meeting peers is important, but make sure they’re meeting the right peers.
Obtain senior buy-in
This comes up in any business article, of course — you have to make sure there’s senior buy-in on any major decisions in an organization. Hiring is maybe the most major decision; it’s half your money going out, and your people are your greatest strategic advantage. Hiring can sometimes be ignored by the top executives — they view it as the domain of HR or specific hiring managers, and because it’s harder to measure, they don’t focus on it as much. Hiring needs to be a focus of your executives. They need to be regularly telling people around the org what culture, values, and character traits they want to see. It needs to be commonplace for a C-suite leader to tell a middle manager what values should be in the company. Otherwise it becomes the domain of specific silos, and finance has a certain type of employee vs. marketing with another vs. Ops with another. Then when those teams need to collaborate, it can be a mess. You’ve seen it. I’ve seen it. And you can avoid it by aligning around character and values.
I’ve spoken about the perfect team traits and the importance of thinking of every employee as allies on a tour of duty. If you are going to make a significant hiring decision, bringing on another comrade on the tour, why not spend the extra time to make it the right decision. Hire for “fit” for character and values. You will be happier. they will be happier. And, the company will benefit for the extra time you took.
Recently, I had a conversation with a former colleague who is about to embark on a new journey in his second role as a CIO. I had a separate conversation with someone who is contemplating making the rise towards the role. I realize that overtime I’ve had lots and lots of conversations and I’ve also met some stellar leaders and some not so stellar. I am still a work in progress and enjoying the journey of everyday trying to become a better leader, better business executive, and a better CIO. I wanted to post a quick list on what I think are some of the critical skills for a CIO.
Five core skills every CIO must continually improve
Of course, there are dozens of items I could include. However, here are the top five in my opinion:
1) RELATIONSHIPS – You have to be able to deal with and be accepted by people in various groups. Expect that in a typical week, you might have a meeting with a peer about a failing project, with vendors to negotiate a contact, with your CFO to review budget, to an external sales call with a client, to a strategic conversation with your CEO, to handling a sensitive issue with an employee. Each relationship is different and requires an ability to adjust your style while remaining authentic.
(See my prior posts on relationships. )
2) FINANCIAL ACUMEN – Master your budget. Know where you’re on target and where you have options to better manage. Don’t depend solely on the Finance function. They may provide you the numbers and the insight, but you get fired or rewarded for results. The temptation of mini technology liters is to spend a lot of time with their infrastructure team and their developers but then to forsake time with the finance leadership. That is a fatal mistake.
3) BUSINESS ACUMEN – you must know the business almost as much as the business development and sales teams. The risk of not working hard to know the businss is being left out of important calls. Or worse, you get invited to “the table”, but only acknowkedged when discussing specific technology issues. If not careful, you will get relegated to corporate stuff and controls.
4) LEADERSHIP – As anyone in the field will know, IT can be thankless. You rarely get calls when things go well, but let the ish hit the fan and your voicemail box is full. Your team needs inspiration and encouragement without pandering or coddling. Tough love that holds them accountable but allows for fast failure and supported recovery. You must have your Henry V moments on St Crispins Day, but also your Harry Potter vs Voldemort one on one battles where you are leading by example. Firm but fair leadership when you are also under pressure can be incredibly tough.
5) HUMILITY – no matter how hard you try, from time to time you will find yourself doing stuff that is “beneath you”. If I had a dollar everytime the entire room looked at me when a PC wasn’t able to connect to the projector, or the CEOs iPhone wasn’t working, I could at least buy a nice dinner or so package. Like it or not, if you have technology in your title, Wharton MBA or otherwise, you will at some point be asked to fix the meeting presentation system in a meeting with the Executive Committee. And you will have to graciously ignore the fact that Joe D. Salesman simply didn’t know how to hit page down to advance his slides.
Being a CIO can be one of the most rewarding, challenging, and exciting opportunities in your corporate career. You will meet amazing people, network amongst technology visionaries as well as business leaders, and drive significant transformation in your company. It can also be highly frustrating and boy will you be tired. A lot. However, continually working on these particular skills will make you and your company more succesful.
What are some expectations you have of your CIO (or, if you are the CIO, of yourself) and does he or she live up to those expectations? What skills would you add to my list?
Be social
