You’re targeting a customer’s Chief Information Officer. How do you know how much clout they actually wield? When it comes to purchasing decisions, it’s not always clear how your customer’s internal executive committee views the CIO. And it’s important you know this so you don’t waste time explaining your solution’s value to a CIO who has no clout at all.
Take this simple, six-question quiz and gain an objective perspective.
For the following questions, score 1 point for each “yes” answer. If your CIO scores 5 or higher, you can expect that he or she wields significant influence.
1. Does the CIO report to the CEO?
If yes, this shows the company truly values the importance of IT. There’s a 92% chance that CIOs reporting to the CEO sit on the executive committee. Their companies devote the highest percentage of revenue to IT.
In contrast, among CIOs reporting to the CFO only 41% sit on the executive committee. And, they earn less. When a CIO is grouped with accounting and legal under “support functions” don’t assume they wield much clout.
2. Is your customer in the financial services, manufacturing or education sectors?
In these sectors, technological leadership is essential and CIOs are critical leaders. Compare that to retail, where CIOs play a supportive role. Instead of initiating new business, they streamline existing business, such as making the supply chain more efficient.
3. Is the CIO’s budget shifting to new initiatives from maintenance?
When IT spending favors innovation over maintenance, it indicates that the CIO is a competitive asset. This CIO’s main role is to create value for the company, not improve traditional tasks on the technology side.
4. Are the CIO’s subordinates focused on delivering business value?
Does the CIO’s staff seem confused about their role in supporting company-wide business strategies? This could point to a broader stumbling block: Many new CIOs have difficulty acting as partners with peers, as well as subordinates. This company culture isn’t easily changed. Research shows that this type of CIO thinks they’re more effective than do the execs to whom they report.
5. Does the CIO generate new ideas?
Influential CIOs continually improve performance by brainstorming new ideas. How do you know if your CIO is an “idea person”? When a CIO has a new idea, he or she will first run it by you, a trusted and valued partner. Be ready when a CIO asks if you’ve implemented something similar for another customer or if you feel the idea has business merit. Leverage the opportunity and strengthen the relationship.
6. Has the CIO held their current position for at least 5 years?
It takes time to earn respect. Average CIO tenure is less than 5 years and even shorter when reporting to the CFO. A CIO who has held a post for at least 5 years should have established authority as a decision maker.
How did your CIOs do? Comment below and let us know if your CIO passed the test. Here’s hoping they all scored a 6!!
