Gartner- Published 28 June 2012
Published: 28 June 2012 ID:G00236390
Analyst(s): Jorge Lopez | Tina Nunno | Steve Weber

VIEW SUMMARY

Among U.S. board members, 16% have experience in IT. While IT is 5% or less in most budgets, it is still a large budget item for most corporations. This report addresses what board members need to know about their investments in IT.

Key Findings

• Boards of directors need to know how they can use IT to gain a competitive advantage.
• Boards of directors must specify the elements of an IT strategic plan they want to review.
• The competency that a board will most want from a CIO is business competence.

Recommendations

Board of Directors:

• Insist that the IT organization construct an IT strategic plan that the board will review once a year. Look for inconsistencies between what IT is saying is important and what the board knows to be important.
• Once a year, have your CIO provide a 15-minute briefing on the Gartner Hype Cycle of emerging technologies, as well as on any industry-specific technologies that apply. This briefing will inform the board as to whether a new technology is a reality to face, or just a bunch of hype.
• When the call goes out for a new CIO, ensure that the newly hired CIO can work with the board of directors directly to answer the questions that the board should ask IT, and can do so in a manner that can be received by the board.

Analysis

Most board members know how much the company is investing in IT as a result of the formal budget approval process. Few, however, know what that money will do for the organization. In this report, we examine the six things that the board of directors needs to ask IT. These are presented in a summary form that can be used directly in a board environment.

Question 1: What Is Being Done to Ensure We Maintain Our Competitive Advantage?

Question 2: What Is Being Done to Ensure We Improve Our Productivity?

Question 3: What Investments Should We Be Considering for the Future?

Question 4: As We Look to the Future, Where Are We at Risk?

Question 5: Where Are We on the Basics?

Question 6: What Should the Board Look for in Its CIO?

Visit http:/staweb.com/community/paper/what-board-needs-ask-about-it-white-paper for the complete report and answers to the 6 questions. The tighter the connection to the Board of Directors / Executive staff and I.T. … the better the results, alignment and outcomes will be.