Chapter 1
The New Normal

EXECUTIVE SUMMARY

For CIOs, expectations have risen dramatically. In addition to delivering near-perfect levels of operational service, CIOs are expected to provide astute guidance and advice that supports enterprise strategy and drives real business growth.

I've written a lot in the past three years about the transformation of information technology (IT) from a cost center to a value center. The chief information officer (CIO) now has a seat at the C-suite table, and the C-suite expects the CIO to deliver real business value!

Delivering real business value is a major part of what I've been calling the big shift. In the past, CIOs were under constant pressure to reduce costs. Although that pressure hasn't gone away entirely, it's been replaced by new pressure to help the business units drive revenue. The old game was all about the bottom line; the new game is about both the bottom line and the top line.

Another key component of the big shift is the change in focus from internal users to external customers. Increasingly, IT is serving the company's customers. Unlike internal customers, external customers generate revenues. If they don't receive great service from your company, they won't merely complain-they will find another company to serve their needs, and your company will lose revenue.

Without a doubt, the game has been elevated and the stakes for IT are far higher than ever before. That's why I call it the big shift-the role of IT is changing enormously and rapidly.

If the new role of IT is enabling the business to deliver value, then delivering great service is clearly a prerequisite. Internal users might be willing to put up with spotty service, but external customers have choices. And they will walk. Great CIOs see the writing on the wall and have already prepared for next level of competition.

Are you ready to play the game at a higher level?

The Best CIOs Know that Results Trump Technology

A good friend recently reminded me that most IT users don't really care about technology-they care about the results that technology delivers. Great CIOs understand that having great technology is less important than delivering great user experiences. My friend cautioned against the tendency to equate technology with results, and urged CIOs to look in the mirror and ask themselves if their IT departments are perceived as a corporate-style Department of Motor Vehicles.

There's an excellent reason why we always talk about people, processes, and technology. You need all three to provide the best possible IT service. You simply cannot get the job done with great technology alone.

But here's the really important takeaway: CIOs who can't deliver great results will never be able to deliver the value that corporate leadership wants and demands from IT.

Leadership Excellence Is a Critical Competitive Advantage

As we enter an era of extreme dynamism and unprecedented innovation, I am absolutely convinced that a new and higher level of IT leadership is required. The modern enterprise expects IT to deliver real business value and contribute significantly to revenue growth in ultra-competitive markets. Failure is simply not an option.

From my perspective, IT leaders must embrace the challenges and opportunities of the new era or fall by the wayside. Successful IT leaders must be fully integrated, multirole C-suite players; they must be stellar communicators; they must know how to create and sustain crucial partnerships across the C-suite; and they must win the war for talent by attracting, hiring, and retaining the best and the brightest of our industry.

Make no mistake: The big shift is happening. It's here, it's real, and IT leaders need to up their game. I strongly believe that we are experiencing a golden age for information technology, and that now is absolutely the perfect time to be an IT leader. The old model is broken, and a new model is emerging.

Together, we are taking a momentous and important journey. Together, we are envisioning and creating the future of IT leadership. Collaboration is the key to innovation, and innovation is the key to business growth.

The Big Shift Is Vital in a Customer-Centric Global Economy

For many of us, the IT industry has always revolved around technology. That's what probably drew us to the field: the cool technology that most people would never understand. We were a lot like the leather-jacketed barnstorming pilots of the early twentieth century-more interested in the technology itself than in the people and companies who might benefit from it.

Those early days have passed, and we have entered a new phase in the history of the IT industry. Our focus has shifted from ourselves to the people who use the technology services we provide. The shift in focus isn't trivial; it represents an enormous change in the way we operate. Our primary job is no longer just making sure that all the technology works-now our job includes making absolutely certain that the technology drives real business value in our interconnected digital global economy.

That's a tall order. It means we're not merely responsible for how well our IT systems operate within the limited boundaries of our own organizations; we're responsible for how well our IT systems work in markets and locations all over the world!

That's why I think the metaphor of shifting gears aptly reflects both the challenge and the opportunity facing today's IT leaders. We have a clear choice: We can shift into a higher gear to keep pace with the changing world around us, or we can cruise comfortably in the slow lane and watch as the rest of the world speeds ahead of us.

The old paradigm is fading, and a new one is replacing it. Speeds and feeds are fine, but having great metrics won't pay the bills. Today's businesses focus on delighting customers, because that's how you make the most money. Thanks to years of cost-cutting, IT is as lean as it's ever going to get. The new challenge is leveraging IT to drive revenue. We've made our contribution to the bottom line; now we have to help grow the top line!

Instead of grumbling, we should be rejoicing. IT is ideally positioned to help the business develop new products, enter new markets, and find new sources of revenue. In a recent column, I wrote about how the combination of social, mobile, cloud, and big data is creating new demands from the business for more IT services. The business wants everything faster, better, and bigger. From my perspective, this is a perfect opportunity for the IT team to demonstrate its business acumen, its work ethic, and its effectiveness under pressure.

If we do this right, together we can launch a new golden age for IT. All of the newer technologies will require tight integration with existing IT infrastructure and intensive support from IT staff. That will translate into thousands of important IT projects-a veritable bonanza of new work.

So here are some of the big questions: Are you ready for the big shift? Are you ready for the additional responsibility, higher visibility, and elevated status it will bring? Are you willing to make the effort required to crank up the pace and work in a place that's outside your comfort zone?

For most of us, I know the answer is an unequivocal yes! These are exciting times ahead, and strong IT leadership will be critical to the success of competitive organizations. I am looking forward to a phenomenal year of growth and opportunity for all of us. Together, we will provide the leadership, innovation, and transformation needed for continuing growth in our rapidly changing global economy.

The Big Shift Is a Total Game Changer

For many years, the primary function of IT was enabling the business. Today, IT often is the business. That's a major transformation. There's no place to hide-IT is front and center.

The big shift is the change from inward-facing IT to outward-facing IT. When IT faced inward, it had a relatively small set of customers to satisfy. Basically, the customers of IT were internal users, and that means they weren't really customers. They were captive users, and they had no choice but to use whatever technology IT gave them.

The consumerization of IT changed all of that. Now those internal customers don't need IT anymore-they can pretty much use any technology available on the market. Hence the growth of shadow IT.

But what's more important-and this is at the heart of the big shift-is that IT's customers are now the same people as the company's customers. That's a huge difference!

Instead of serving captive customers with no choice, IT now serves paying customers who are free to choose from multiple suppliers. If those external customers aren't happy, they will find another supplier and your company's revenues will plummet.

That is the essence of the big shift. In years past, IT only had to worry about a handful of internal users. Now, IT has to worry about real customers and real markets in a hypercompetitive global economy.

In a very real sense, IT has stepped up. We're playing in the big leagues now. Today, IT really matters. It matters to the top line and to...