IT chiefs urged to strengthen board ties

Boards lacking in IT expertise increasingly control IT investment, warn analysts

IT leaders have been urged to strengthen relationships with their boards of directors, or face having IT investment plans made without their input.

While the majority of CIOs understand the importance of having the ear of colleagues in the C-level team, many of the most important strategic decisions are made by the executive board, where IT is chronically under-represented, said Jorge Lopez, a distinguished analyst at Gartner.

Research from the US-based National Association for Corporate Directors (NACD) suggests that as few as one in six executive board members has any IT background or experience.

That lack of IT expertise on the board is forcing CIOs to demonstrate that investments made in IT contribute to meeting the organisation's objectives, said Lopez.

According to his research, nine out of 10 CIOs will make presentations to the board at some point during a year, but only one in 10 will be invited to present at every board meeting.

That limits the CIOs' ability to get their messages across, said Lopez. “So it's essential that CIOs invest the time in getting to know their board members and making a case that fits with their priorities,” he added.

Typically, boards of directors are focused on issues such as risk, strategy and audit, which are areas where the CIO can have a major input.

“What successful CIOs do is show there is a causal link between their activities and the board's priorities,” said Lopez.

And there are positive signs that executive boards are beginning to take a more active interest in IT. A recent meeting of directors of global Fortune 250 companies organised by the NACD highlighted the growing importance of IT and data governance, raising its members' awareness of issues such as cloud computing, cyber security and social media.