King III now firmly puts IT on the Board agenda – why?  King III recognizes that IT has become an integral part of business operations and is fundamental to the support, growth, and sustainability of the business. IT has now gone beyond the point where it merely plays an enabling role in the organization – with the passenger status that this implies. King III also recognizes that if IT is not managed in an appropriate manner this poses significant risks to organizations. King III has in one stroke done what IT executives have been trying to do for sometime with limited success.

 

IT execs must adopt the motto “Carpe Diem” - seize the day! Now is the time for them to take control of the opportunity that King III presents. According to Terry White, Research Director of CXO Advisor, “Failure to use King III as a catalyst for IT alignment and relevance, may well be the end of many IT leadership careers- Particularly those CIOs who have not developed a business-centric approach to IT – if the CIO cannot speak business, he or she won’t be speaking at all. Far too many IT executives still think technology is the important factor, and not what technology does for their business.” The Board is looking – is required to look by King III – to their IT executives to help them execute on their new responsibilities and provide s decision framework against which they can execute their obligations as Board members.

 

White goes on to explain that, “What the IT executive needs to do is find a way to build a common understanding of the company’s IT landscape with the board.” For example, CXO Advisor has developed an approach to IT Budgeting, forecasting and spending which will allow the Board to understand their IT spend, take strategic decisions and understand both IT value drivers and risks without them having to understand the technology. “We have successfully deployed our approach at a number of businesses with really satisfying results.” says White, “We have one of SA’s largest bank and Life insurer plus a range of medium size organizations amongst others have both adopted our approach to their IT budgeting, because it made so much business sense to non-IT people.”

 

In solving the Board communication dilemma facing almost all King III IT initiatives, CIO’s will be going a long way towards having their potential role and the role of IT in their business recognized and appreciated.

 

If they can get this right, they may even find that a number of pressures, like how to cut costs, how to ensure additional funding for new initiatives, and how IT adds value will also be solved.

 

We believe that successful CIOs will look back at King III and recognize it as one of the most important land marks in the maturation of IT management practice. It will have forced the transition of IT from the business “black hole” of understanding to one where IT’s role is understood and appreciated. However in the process a new style of IT leader will emerge, one who is more in tune with the business. It is a time for change in IT management practices and this is a great opportunity for CIOs.

 

Unsuccessful CIOs will think that King III is yet another regulatory pressure that should be handled with the least possible effort or thought and will be making a serious mistake that will render them irrelevant to their Board. There is no technology for its own sake, only for business value.