According to the global CIO of Deloitte, Larry Quinlan, "the role of a technology leader is not to develop a digital strategy or vision - it is to embed digital in the business strategy." This quote speaks to the critical importance of IT-business alignment, something that CIOs are actively focusing on in the wake of the pandemic.
The 2022 State of the CIO Executive Summary reported that one of CIOs' top priorities this year is aligning their IT initiatives with general business goals. While this objective may seem obvious, especially considering the cost benefits of IT-business alignment, many companies struggle. However, companies must prioritize IT-business alignment to stay afloat in a rapidly evolving technological world. The process will be unique for each industry and company, yet the following three steps are the backbone to success.
Communicate: Cultivating Strong Business Relationships
Perhaps the biggest factor affecting IT-business alignment is a lack of proper communication. The IT and business departments have deep-rooted cultural differences that hinder communication and understanding. This divide is evident in each department's unique language and terminology. In meetings, tech professionals may use lingo that CEOs and managers do not understand, and vice versa.
Before companies can strategize about IT-business alignment, they must find common ground and even a common language. There are a few ways to do this:
- Set a company-wide standard for terminology.
- Consider rotating employees between departments.
- Build an inclusive environment.
- Create a culture of transparency.
Statistically, these changes work. Deloitte conducted their 2020 Global Technology Leadership survey and found that almost 12% of organizations had superior IT-business alignment, resulting in market leadership. Of these companies, 72% reported that the tech department openly interacts with board directors outside of meetings. Only 44% of the baseline companies reported the same open communication.
Implement: Set Priorities and Strategies Together
Once companies bridge the communication gap, they can strategize about practical ways to improve IT-business alignment. The first way to do this is to include tech professionals on the board and share their priorities.
Deloitte's 2020 survey shows how successful these changes can be. 79% of leading organizations reported having tech professionals on the board, and 84% stated that they aggressively pursue technological initiatives. The future lies in technological innovations, as showcased by the leap in tech advancements during the pandemic. When companies prioritize tech and develop strategies with the IT department, they set themselves up for success.
Evaluate: Using KPIs, Metrics, and Surveys to Measure Progress
Like any other initiative, IT-business alignment requires constant evaluation and improvement. While it can be difficult to directly measure alignment, companies can establish what metrics and KPIs they want to track during strategy meetings.
For example, one common goal is to improve efficiency and increase cost-effectiveness, which often directly relates to website and network infrastructure performance. The IT department can report service uptime KPIs, while managers may report feedback from the customer service department. Organizations can also incorporate company-wide surveys to gauge progress in developing a transparent and inclusive environment.
While challenging, improving IT-business alignment is possible. Implementing the three steps above can result in company-wide collaboration, reduced expenses, and a better ROI.