Pow-wows with the Board

By Courtney Macavinta

Although many CIOs started out as IT leaders, many are increasingly making the invite list to board meetings and are expected to show their expertise as something else: business leaders. What's clear is that as boards become more interested in IT matters, CIOs need to hone their skills -- from preparing presentations that aren't mired in technical details to being able to talk about IT projects as they relate directly to the bottom line or a company's future.

"CIOs are spending more time in front of the board now more than ever," says Tina Nunno, a vice president and research director for Gartner who co-authored the July 2006 report, Working with the Board of Directors. "The challenge for the CIO is to present IT information to the board in a way that is relevant for the board and helps the board make those decisions about IT investments and strategy. The CIOs who are most productive present information through that lens."

Gartner and other experts say in order for CIOs to exceed in their role -- and possibly climb the ladder to CEO or be earmarked as a future board member -- they need to take the following steps before, during and after their face-time with the board:

Know your strategy
Any board presentation by a CIO must make IT results, plans or strategies relevant to the enterprise's overall business goals, says Paul Groce, partner and head of the CIO recruiting practice for Christian & Timbers. "They are impacting the board and need to be able to talk ROI, business strategy, and how we're supporting that," Groce says. "Effective CIOs are approaching the boards not as CIOs, but as team members with other lines of business leaders."

Know your ROI story
Before meeting with the board, CIOs need to know what board members care about most. Nunno says the main areas of concern for most organizations right now are growth, risk, and cost. No matter the IT project or agenda item, she says CIOs have to answer the question: "'Will this help our enterprise grow or reduce cost?' And [answer by] presenting the risks associated with each investment or change of direction." Groce advises that CIOs not just approach the board purely with ideas "but with metrics, measurements, and hard results. Boards are curious, 'How do we measure success? How do we measure you?' CIOs need to be able to communicate this."

Know your audience
It's essential for CIOs to build an ongoing relationship with board members. Groce says this could mean "knowing the board members, their background, and their appreciation and knowledge of technology." When it comes to drilling down into the details of a particular IT project, Groce says CIOs need to tread lightly and stay focused on the ROI, for example. Because though board members might understand an income statement, it doesn't mean they necessarily understand the architecture of the data center. "The trick is to have the single-page executive briefing and to take it either down to the elements or to the PhD level with individuals at the appropriate time." Nunno agrees and says CIOs also need to stay on top of each board member's perspective on the business. "The other trick for the CIO," she says, "is understanding that not only is every board different but every board member is different. Changing one or two board members can change the dynamic of the entire board. CIOs need to make sure they respond to changing demands of the board."

Know your portfolio
It's worth the time for CIOs to investigate how board members like information presented, and to develop a multi-faceted portfolio to help them respond quickly to questions, Nunno says. "If their measurements are all bits, bytes, and system up time versus how IT contributed to growth in the company, then it's very hard to answer those questions." She suggests that CIOs organize their portfolio based on how IT supports the business or growth. "High performance CIOs will know the degree to which they installed IT to support new products and the revenue those new products brought in [or how they helped] save money." Plus, she says CIOs would be wise to brief their business partners about IT's big-picture results so those department leaders will be able speak about IT in the same terms when they're in front of the board, too.

The bottom line, says Nunno, is: "It's great to be viewed as a technology leader, but in front of the board you need to be an excellent business leader first."

Courtney Macavinta is a Silicon Valley-based business and technology writer. Her articles have appeared in CNET News, Business 2.0, Red Herring, Wired News, and The Washington Post. She also is managing editor of  the online program The Online Family.