"IT should die out eventually," says leading IT director
08 Oct 2009, Angelica Mari, Computing
http://www.computing.co.uk/ctg/analysis/1820659/-it-die-eventually-leading-it-director
Martin Schofield doesn’t waste time. Since joining luxury retailer Harvey Nichols in 2003 as a head of IT, he has taken responsibility for logistics, got promoted to the firm’s board and is now in control of its entire store operations.
During his tenure, the company’s IT was completely transformed, as was the approach of the IT department, which has changed from being a glorified helpdesk with poor supplier management skills into an internal consultancy.
“As IT, we are fortunate to have a view of most of the operation, whereas other departments tend to operate in silos of understanding,” says Schofield. “With my brief and their experience, the IT team is now establishing a centre of knowledge along with the business sponsors and project leaders.”
Schofield believes the traditional IT department is an anachronism. “You can’t just sit behind an IT wall and be the techie people who fix PCs. You have to demonstrate you know more and are able to converse at a level the business understands, not litter it with technical terms. And also be prepared to provide solutions that aren’t always technical,” he says.
“IT should die out eventually,” he adds, warming to his theme. “That said, there is always the need for a technical lead, so the best [IT departments] may evolve into a ‘business integrity’ function, taking on the overall internal consultancy, an understanding-people role.”
Under Schofield’s new set of responsibilities, some 15 store managers report directly to him, in addition to five IT managers.
Given the size of the IT team at the department store firm – around 28 in-house staff – the business does not have a complex succession planning strat egy, but there is a development plan in place for senior roles.
The career enhancement plan entails improvement of business understanding, and managers are encouraged to “live and breathe” retail. “I don’t send them on ‘How to be a better IT manager’ courses,” says Schofield.
As IT staff turnover at Harvey Nichols is low, the firm does not have a specific recruitment plan for the IT function. Often, new team members come from other areas of the business after getting involved in technical projects, which also works as a proving ground for finding the right people.
While still getting to grips with juggling three distinct areas of responsibility, Schofield is also developing his own skill set, by applying logical thinking to facets of the job such as “shepherding chaos”.
“Now I have to sit in the middle of the three areas. It is fun to be able to sponsor, identify and implement projects, but it is still quite a broad remit,” he says.
According to Schofield, as IT departments morph into internal consultancies, companies will need to hire people with MBAs and business qualifications for IT roles, who can bridge the gap between functional expertise and management skills.
“Focus on the business,” is Schofield’s main tip for aspiring technology leaders. “IT is and should be part of the business. Get on with it.”
CIOs to morph into multifunctional leaders
As the role of technology becomes increasingly critical for businesses, the traditional chief information officer (CIO) role becomes equally transitory, according to research carried out by the Cranfield School of Management and consulting firm Deloitte.
The future management generation will understand IT intimately and appreciate its benefits to the business, the research found.
According to Cranfield’s Joe Peppard, “multifunctional” leaders taking on responsibility for IT in addition to other areas will become more common as organisations depart from technology delivery models to value realisation.
However, Peppard warns that big expectations from traditional boards and their definition of the CIO role could pose a problem, coupled with the fact that some businesses do not know what should be the qualities of an IT leader and what type of manager they are looking for.
“The value of technology is not in its possession, but how it is used by the business. And this is where the role of the CIO comes to the fore: in demonstrating to the business the role that information plays,” he says.
David Roberts, chief executive of blue-chip user group The Corporate IT Forum, agrees that in future IT leaders will need to wear a variety of business-related hats. “But so far, I have noticed only IT people becoming businessmen, [not vice versa],” he adds.
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If IT, then also Finance, HR, and any other "Discipline-based Department"
It is true that IT needs to become much more integrated with the business, the same way HR, Legal, Finance and Accounting need to be. To then say, however, that technical language should be dropped or that the IT department should disappear altogether, however, is ignoring the fact that, like Finance, HR, Legal, and Accounting, there needs to be a centre of excellence within the business to manage the risks and opportunities presented by present and future IT developments. Otherwise, we are in danger of simply creating organizations full of homogenized, mediocre staff who are unable to contribute effectively to their organizations in any value-adding, meaningful way and who then resort to political game playing in order to achieve promotions they cannot achive in any other way. But, then, maybe that is what is wrong with the UK today? Perhaps, instead of seeing the IT department as a threat to the established order, it is about time that organizations in the UK realized that IT is every bit as necesssary as Finance, Accounting, HR and Legal and that it be given the same status accordingly. This having been said, of course, there does also need to be a realization that IT staff need to be hired who are not just "into technology" but who have a solid educational grounding in both technology and business. Either that, or outsource the whole of the business elsewhere but, then, is that not just another way of saying "shut up shop and give in to the competition"?
Posted by: Anonymous 08 Oct 2009
Group IT & Operations Director
Concur entirely. I have been on the main board of our law firm for over 10 years and the role has grown through to encompass more than just IT matters. I am generally viewed as having an ability to solve practical operational issues which may or may not include IT in the solution. IT is now a provider of services and is moving towards being an internal service of high calibre people offering business solutions.
Posted by: Richard Hodkinson 09 Oct 2009
Response
Don't disagree with your comments but the point here is that 'IT' performs two distinct roles; that of technical centre of excellence but also the growing role of internal consultancy, business improvement if you like. The badge 'IT' tends to mean 'PC Fixers' to most users and can create an immediate barrier to business involvement. The fact that we continue to moan about IT integration to the business is in itself also creating a barrier. The "death" referred to here is to the name and not to the function or important role it plays.
Posted by: Martin Schofield 09 Oct 2009
Maybe in the Big Companies
I agree that IT is evolving but in smaller companies I don't believe there will be much change. Smaller companies do not have the scope for an IT consultancy in-house. If I was a Uni student reading Martin's comments I would be worried about a future in IT. Small companies will continue to operate as is, if they outsource like many Govt Depts they will suffer long term. I have read all the talk on how good outsourcing is but having been in both camps the savings are short term that make it look good on paper initially but all upgrades come at a price. There will always be IT it will never die out.
Posted by: GH 12 Oct 2009
The IT department should be at the centre of any business
Whilst the IT department is clearly not set for extinction altogether, I do think that IT as a function will face vast changes over the coming years. Companies have different views about IT systems; some see them as process systems, others as a management information provider, but unfortunately most view them as just another costly overhead. However, in progressive companies IT is recognised as an interchange hub which is able to send and receive useful information to and from all parts of a business. This means the IT department itself should also act as a nucleus with strong links to all aspects of a company. The main point is that IT should not merely sit alongside a firm's other divisions with the simple task of fixing the computers. The IT department should be seen as a strategic partner and one which can add value to an organisation: as Martin points out, the head of IT is in a unique position to take a truly holistic view of a company. It is up to the board to recognise this, and harness this knowledge to benefit the business. A skilled CIO's role will change organically with an organisation, and each party must be able to shape the other to provide the best results for the business as a whole.
Posted by: Peter Titmus, Networks First 13 Oct 2009
Naive and wrong
Having worked in Retail IT I recognise this kind of mindset. He is wrong and naive and will only end up damaging his business with an infrastructure which is third rate, which in actual fact it probably is already.
Serious IT players dont stay in companies like this, they go and work for proper firms that understand technology.
Martin Schofield might think that Doris from the smalls department might be a good fit for his 'IT' department and in his doubtlessly flawed operation she probably would be.
Posted by: Bertram H. 12 Nov 2009
CIO roundtable backs this up
Many of the points raised at a CIO roundtable we held recently back up what Martin says. Read the full set of discussion notes here: http://www.badenochandclark.com/files/file/IT%20Directors%20Forum%20discussion%20notes.pdf
Posted by: Matt Gascoigne, Badenoch & Clark 23 Nov 2009
IT is just a tool for business
IT is just one of many tools businesses have to use.
Unfortunately for many the IT department has become a burdensome constraint rather than a useful service.
Posted by: Max 19 Nov 2009