An interview with Ginna Raahauge, CIO of Riverbed Technologies which provides application performance infrastructure.
The Enterprisers Project (TEP): How have today's tech-conscious users affected the way IT works within an organization?
Raahauge: In general I think IT's visibility with the business is improving because more and more end users are becoming technically savvy. This has resulted in things like BYOD and Shadow IT. I believe the consumerization of IT is actually making it easier to demonstrate the value of IT to the business because there is more focus on what technology can do to improve workflows, productivity and getting business done.
TEP: Some IT projects have more obvious benefits than others, though. How do you make sure the business understands the value of projects that don't have a lot of visible sizzle?
Raahauge: When it comes to an under-the-radar project, it's important to demonstrate where it fits into the larger picture or how it drives efficiencies. This means showing the long-term cost savings, employee productivity increases, IT employee hours saved and the domino effect of a project. By this I mean the time and resources one project might free up to accomplish another, more important project. In this regard, context is everything for showing IT value.
For example, foundational investments are usually seen as the plumbing and are farther away from the shiny features closest to the end users. These tend to be architectural elements like data architectures or security architectures. They don't have a lot of visible sizzle but are core to any business scaling or business function getting the maximum use of the cool features and functionality that are going to be run on top of those foundational elements. Without this foundation, the sizzling projects, such as SaaS applications--don't work as well. That's when you see end user complaints which bog down the business as much as the IT team. Showing this bog down helps management understand why foundational investments are important.
TEP: How do you communicate tech value without resorting to geek-speak?
Raahauge: I am fortunate that Riverbed, as an application performance management company, inherently understands the power of IT and technology. Our executives live and breathe IT infrastructure and what that can do for a company's bottom line.
That said, as an IT leader you need to convert speeds and feeds into real business problems. When you do this it becomes obvious when action needs to be taken or employees won't be able to do their jobs, the bottom line is hurt and new revenue opportunities are missed. When you can speak to these three pillars of a business you will get executive's attention.
It's also important to provide supporting numbers, which means IT needs to be accountable as a business unto itself. This can be achieved by operating against a P&L just like any other business unit and focusing on what value is being delivered to improve margins. When you do this, you're speaking an executive's language versus getting into geek-speak.
TEP: What are the most common mistakes you see CIOs and other tech leaders make when communicating to the business about projects?
Raahauge: I think one of the most common mistakes CIOs make — even at technology companies — is when technical leaders and CIOs believe that everyone follows the fast moving techno-lingo, emerging technologies and trends. When explaining the solution or vision it can at times come across as speaking at the PhD level, which isn't helpful to your cause. It's very important to take a step back and determine if what youíre saying can be understood by everyone in the room, not just your team.
TEP: Many CIOs face competing demands for projects, all of which are important, at least to someone. How do you balance those demands, and also make sure the keep-the-lights-on work gets done?
Raahauge: First I strongly believe in collaborative governance models where business and IT come together to understand the full end-to-end demands and requests. Some might result from overlapping requirements from separate business functions or units. At Riverbed, as we grow, it becomes even more important to bring together the set of operational leaders that will shepherd the prioritization of strategic portfolio items. These are the things that need to be done to achieve top line business goals.
For this reason, communication and context are key to balancing competing demands. Since IT is a natural aggregation point of all demands, IT needs to rationalize the priorities and interdependencies. Doing that as a joint effort with our business eases and speeds the decision-making. This has really improved our ability to focus and streamline how we get more things done in the portfolio.
Additionally, leadership and delegation are key to ensuring projects are completed and the keep-the-lights-on functions are met. It's about establishing expectations so individual contributors know what's important and can better manage their day-to-day activities, A.K.A. those competing demands.
The right delegation comes down to trust and accountability. If you've established trust with your team they will be more accountable and will actually perform their roles more effectively, freeing everyone up to see their projects through without micromanagement. That's when you can start taking on more ambitious goals and better managing multiple demands together.
TEP: Any advice you'd pass along to other CIOs on how to help the business understand the value of IT projects, and how to balance competing demands?
Raahauge: It's critical to relate IT projects to new revenue opportunities, end user impact and the business's bottom line. This can only be done when IT leaders get out from behind the desk and out of the server room to understand what the business truly needs.
This needs to go beyond just the standard one-on-one with your business clients. You need to really participate and listen in on their strategic planning efforts. IT can bring a consolidated vantage point and this is a powerful tool when defining IT's value. I suggested IT leaders focus their work with executives around the fact that IT is the factory for the business value. It's the internal supply chain for achieving business goals.
Minda Zetlin is a business technology writer and columnist for Inc.com. She is co-author of "The Geek Gap: Why Business and Technology Professionals Don't Understand Each Other and Why They Need Each Other to Survive," as well as several other books. She lives in Snohomish, Washington.