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12 TowaRD besT pRaCTiCes

Introduction

The previous chapters provided the foundation for the formation of “ best practices” to implement and sustain responsive organizational dynamism (ROD). First, it is important to define what we mean by best practices and specify which components comprise that definition. Best practices are defined as generally accepted ways of doing spe- cific functions or processes by a particular profession or industry. Best practices, in the context of ROD, are a set of processes, behaviors, and organizational structures that tend to provide successful foundations to implement and sustain organizational learning. I defined respon- sive organizational dynamism as the disposition of a company to respond at the organizational level to the volatility of advancing tech- nologies— ones that challenge the organization to manage a constant state of dynamic and unpredictable change. Second, best practices are those that need to be attributed to multiple communities of practice as well as to the different professions or disciplines within a learning organization.

However, these multiple tiers of best practices need to be integrated and to operate with one another to be considered under the rubric. Indeed, best practices contained solely within a discipline or com- munity are limited in their ability to operate on an organization-wide level. It is the objective of this chapter, therefore, to formulate a set of distinctive yet integrated best practices that can establish and support ROD through organizational learning. Each component of the set of best practices needs to be accompanied by its own maturity arc, which defines and describes the stages of development and the dimensions that comprise best practices. Each stage defines a linear path of con- tinued progress until a set of best practices is reached. In this way, organizations can assess where they are in terms of best practices and determine what they need to do to progress. Ultimately, each maturity

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arc will represent a subset of the overall set of best practices for the organization.

The discipline that lays the foundation for ROD is information technology (IT). Therefore, the role of the chief IT executive needs to be at the base of organizational best practices. As such, I start build- ing the organizational best practices model with the chief IT execu- tive at the core.

Chief IT Executive

I use the title “ chief IT executive” to name the most senior IT indi- vidual in an organization. Because of the lack of best practices in this profession, a number of different titles are used to describe this job. While these titles are distinct among themselves, I have found that they are not consistently followed in organizations. However, it is important to understand these titles and their distinctions, particu- larly because an organizational learning practitioner will encounter them in practice. These titles and roles are listed and discussed next:

Chief information officer (CIO) : This individual is usually the most senior IT executive in an organization, although not every organization has such a person. The CIO is not necessarily the most technical of people or even someone who has come through the “ ranks” of IT. Instead, this individual is consid- ered an executive who understands how technology needs to be integrated within the organization. CIOs typically have other general IT executives and managers who report directly to them. As shown in the Siemens case study, there can be a number of alternate levels of CIOs, from corporate CIOs to local CIOs of a company division. For the purposes of this discussion, I look at the corporate CIO, who is considered part of the senior executive management team. My research on chief executive officer (CEO) perceptions of technology and business strategy showed that only a small percentage of CIOs report directly to the CEO of their organization, so it would be incorrect to generalize that they report to the most senior executive. In most cases, the CIO reports to the chief oper- ating officer (COO) or the chief financial officer (CFO). As

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stated, the role of the CIO is to manage information so that it can be used for business needs and strategy. Technology, then, is considered a valuable part of knowledge management from a strategic perspective as opposed to just a technical one.

Chief technology officer (CTO) : This individual, unlike the CIO, is very much a senior technical person. The role of the CTO is to ensure that the organization is using the best and most cost- effective technology to achieve its goals. One could argue that the CTO holds more of a research-and-development type of position. In many organizations, the CTO reports directly to the CIO and is seen as a component of the overall IT infrastructure. However, some companies, like Ravell and HTC, only have a CTO and view technology more from the technical perspective.

Chief knowledge officer (CKO) and chief digital officer (CDO) : This role derives from library management organizations because of the relevance of the word knowledge and/or data. It also com- petes somewhat with the CIO’ s role when organizations view technology from a perspective that relates more to knowledge. In larger organizations, the CKO/CDO may report directly to the CIO. In its purest role, the CKO/CDO is responsible for developing an overall infrastructure for managing knowl- edge, including intellectual capital, sharing of information, and worker communication. Based on this description, the CKO/CDO is not necessarily associated with technology but is more often considered part of the technology infrastructure due to the relevance of knowledge and data to technology.

To define best practices for this function, it is necessary to under- stand the current information and statistics about what these people do and how they do it. Most of the statistical data about the roles and responsibilities of chief IT executives are reported under the auspices of the CIO. According to an article by Jerry Gregoire in CIO magazine in March 2002, 63% of IT executives held the title CIO, while 13% were CTOs; there were few to no specific statistics available on the title of CKO and CDO, however, the CDO role has become more relevant over the past five years given the importance of social media and digital transformations. This report further supported the claim that there is limited use of the CKO title and function in organizations at this time.

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From a structural point of view, 63% of IT organizations are cen- trally structured, while 23% are decentralized with a central reporting structure. However, 14% are decentralized without any central head- quarters or reporting structure. From a spending perspective, orga- nizations spend most of their budgets on integrating technology into existing applications and daily processing (36% of budget). Twenty- six percent is related to investments in emerging or new technologies, 24% is based on investing in e-commerce activities, and 24% is spent on customer relationship management (CRM), which is defined as applications that engage in assisting organizations to better under- stand and support their customer base. Twenty-five percent is spent on staff development and retention.

Compensation of IT chief executives still comes predominantly from base salary, as opposed to bonus or equity positions with the company. This suggests that their role is not generally viewed as top management or partner-level in the business. This opinion was sup- ported by the results of my CEO study, discussed in Chapter 2. The issue of executive seniority can be determined by whether the chief IT executive is corporate driven or business unit driven. This means that some executives have corporate-wide responsibilities as opposed to a specific area or business unit. The issue of where IT depart- ments provide value to the organization was discussed in Chapter 3, which showed that there are indeed different ways to manage and structure the role of IT. However, in general, corporate IT execu- tives are responsible for IT infrastructure, shared technology services, and global technology architecture, while business unit CIOs con- centrate on strategically understanding how to use applications and processes to support their business units. This is graphically depicted in Figure 12.1.

From a best practices perspective, the following list has historically suggested what chief IT executives should be doing. The list empha- sizes team building, coaching, motivating, and mentoring as tech- niques for implementing these best practices.

Strategic thinking : Must understand the business strategy and competitive landscape of the company to apply technology in the most valuable way to the organization.

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Industry expertise : Must have the ability to understand the prod- uct and services that the company produces.

Create and manage change : Must have the ability to create change, through technology, in the operating and business processes of the organization to gain efficiency and competi- tive advantage.

Communications : Must have the ability to communicate ideas, to give direction, to listen, to negotiate, to persuade, and to resolve conflicts. Executives must also be able to translate technical information to those who are not technologically literate or are outside IT and need to be comfortable speaking in public forums and in front of other executives.

Relationship building : Must have the ability to interface with peers, superiors, and customers, by establishing and main- taining strong rapport, bond, and trust between individuals.

Business knowledge : Must have the ability to develop strong busi- ness acumen and having peripheral vision across all functional areas of the business.

Technology proficiency : Must have the knowledge to identify appropriate technologies that are the most pragmatic for the business, can be delivered quickly at the lowest cost, produce an impact on the bottom line (ROI), and have longevity.

Local applications

Standard IT applications

Shared IT technology services

Public available infrastructure (Internet, portals, etc.)

IT infrastructure

Business level CIOs

Corporate CIOs

Figure 12.1 Business-level versus corporate-level CIOs.

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Leadership : Must be a visionary person, inspirational, influential, creative, fair, and open minded with individuals within and outside the organization.

Management skills : Must have the ability to direct and supervise people, projects, resources, budget, and vendors.

Hiring and retention : Must have the ability to recognize, culti- vate, and retain IT talent.

While this list is not exhaustive, it provides a general perspec- tive, one that appears generic; that is, many management positions in an organization might contain similar requirements. A survey of 500 CIOs conducted by CIO magazine (March 2002) rated the top three most important concerns among this community in terms of importance:

1. Communications: 70% 2. Business understanding: 58% 3. Strategic thinking: 46%

What is interesting about this statistic is that only 10% of CIOs identified technical proficiency as critical for their jobs. This find- ing supports the notion that CIOs need to familiarize themselves with business issues, as opposed to just technical ones. Furthermore, the majority of a CIO’ s time today has been recorded as spent com- municating with other business executives (33%) and managing IT staffs (28%). Other common activities reported in the survey were as follows:

• Operating the baseline infrastructure and applications • Acting as technology visionary • Implementing IT portions of new business initiatives • Designing infrastructure and manage infrastructure projects • Allocating technology resources • Measuring and communicate results • Serving as the company spokesperson on IT-related matters • Selecting and managing product and service providers • Recruiting, retaining, and developing IT staff • Participating in company and business unit strategy

development

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These results further confirm that chief IT executives define best practices, based on understanding and supporting business strategy.

This survey also reported common barriers that chief IT executives have to being successful. The overarching barrier that most IT execu- tives face is the constant struggle between the business expectation to drive change and improve processes, and the need to reduce costs and complete projects faster. The detailed list of reported problems by rank was as follows:

1. Lack of key staff, skill sets, and retention: 40% 2. Inadequate budgets and prioritizing: 37% 3. Shortage of time for strategic thinking: 31% 4. Volatile market conditions: 22% 5. Ineffective communications with users: 18% 6. Poor vendor support and service levels, and quality: 16% 7. Overwhelming pace of technological change: 14% 8. Disconnection with executive peers: 12% 9. Difficulty proving the value of IT: 10% 10. Counterproductive office politics: 6%

Chief IT executives also felt that their roles were ultimately influ- enced by two leading factors: (1) changes in the nature and capabilities of technology, and (2) changes in the business environment, includ- ing marketplace, competitive, and regulatory pressures. This can be graphically viewed in Figure 12.2.

Figure 12.2 has a striking similarity to Figure 3.1 outlining ROD. That diagram represented technology as an independent variable cre- ating the need for ROD, which is composed of strategic integration and cultural assimilation, as shown in Figure 12.3.

Figure 12.3 shows many similarities to Figure 12.2. The difference between these two diagrams defines what is missing from many best practices: the inclusion of organizational learning practices that would enable chief IT executives to better manage business and technology issues. In effect, if organizational learning techniques were included, they could reduce many barriers between business and IT. Thus, the solution to providing best practices for the IT community rests with the inclusion of organizational learning along the constructs of ROD.

The inclusion of organizational learning is crucial because the best practices, as reported among the community of chief IT executives, has

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Technology drivers

Business environment

Strategic options

Im po

sesInspires

Figure 12.2 Chief IT executives— factors influencing strategic options.

Technology creates

Symptoms and implications

Responsive organizational

dynamism

Acceleration of events that require different

infrastructures and organizational processes

Requires

Strategic integration

Cultural assimilation

Organization structures (system)

Individual actions

Renegotiation of relationship

Organizational learning techniques

Figure 12.3 ROD and organizational learning techniques.

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not produced the performance outcomes sought by chief executives. I refer to Chapter 2, in which I first defined the IT dilemma. While many IT initiatives are credible, they often fall short of including critical business issues. As a result, IT project goals are not completely attained. This suggests that the problem is more related to the process and details of how to better implement good ideas. As further sup- port for this position, the Concours Group (an international executive managing consulting organization) published a list of emerging roles and responsibilities that chief IT executives will need to undertake as part of their jobs in the near future (Cash & Pearlson, 2004):

Shared services leader : More companies are moving to the shared services model for corporate staff functions. CIOs’ experi- ences may be invaluable in developing and managing these organizations.

Executive account manager : More companies today are involv- ing the CIO in the management of relationships between the company and its customers.

Process leader : As companies move toward organizing around major business processes, a CIO is in a good role to temporar- ily lead this effort since applications and databases are among the business resources that must be revamped to implement process management.

Innovation leader : A CIO is starting to act as the innovation leader of the corporation when a company is seeking to achieve substantial improvements in process performance or operational efficiencies, or to implement IT, since innovation may center on the application of IT.

Supply chain executive: Purchasing, warehousing, and transpor- tation are among the most information-intensive activities undertaken by a business. As companies look to improve these overall processes, the CIO may become the most knowledge- able executive about the supply chain.

Information architect : Companies are recognizing the benefit of a consolidated view of customers, vendors, employees, and so on. CIOs are finding themselves taking on the leadership role of information architect by cultivating commitment and con- sensus around this challenging task.

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Change leader : CIOs are playing an increasingly important role in business change management. Their role is in either direct change leadership (developing new business models) or, more often, indirect; that is, change process is behind the scenes (get other leaders to think about new possibilities).

Business process outsourcing leader : CIOs tend to have some of the most extensive experience in company outsourcing. This makes them a logical internal consultant and management practice leader in business process outsourcing.

These issues all suggest that the role of the chief IT executive is growing and that the need for these executives to become better inte- grated with the rest of their organizations is crucial for their success. Much more relevant, though, is the need for ROD and the role that the chief IT executive has as a member of the overall community. To create best practices that embrace organizational learning and foster ROD, a chief IT executive maturity arc needs to be developed that includes the industry best practices presented here integrated with organizational learning components.

The chief IT executive best practices arc is an instrument for assess- ing the business maturity of chief IT executives. The arc may evaluate a chief IT executive’ s business leadership using a grid that measures competencies ranging from essential knowledge in technology to more complex uses of technology in critical business thinking. Thus, the chief IT executive best practices arc provides executives with a method of integrating technology knowledge and business by present- ing a structured approach of self-assessment and defined milestones.

The model measures five principal facets of a technology executive: cognitive, organization culture, management values, business ethics, and executive presence. Each dimension or sector is measured in five stages of maturation that guide the chief IT executive’ s growth. The first facet calls for becoming reflectively aware about one’ s existing knowl- edge of technology and what it can do for the organization. The second calls for other centeredness , in which chief IT executives become aware of the multiplicity of technology perspectives available (e.g., other busi- ness views of how technology can benefit the organization). The third is comprehension of the technology process , in which a chief IT executive can begin to merge technology issues with business concepts and functions.

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The fourth is stable technology integration , meaning that the chief IT executive understands how technology can be used and is resilient to nonauthentic sources of business knowledge. Stage 4 represents an ongoing implementation of both technology and business concepts. The fifth stage is technology leadership , in which chief IT executives have reached a stage at which their judgment on using technology and business is independent and can be used to self-educate from within. Thus, as chief IT executives grow in knowledge of technology and business, they can become increasingly more other centered, inte- grated, stable, and autonomous with the way they use their business minds and express their executive leadership and character.

Definitions of Maturity Stages and Dimension Variables in the Chief IT Executive Best Practices Arc

Maturity Stages

1. Technology competence and recognition : This first stage repre- sents the chief IT executive’ s capacity to learn, conceptualize, and articulate key issues relating to cognitive technological skills, organization culture/etiquette, management value sys- tems, business ethics, and executive presence needed to be a successful chief IT executive in business.

2. Multiplicity of technology perspectives : This stage indicates the chief IT executive’ s ability to integrate multiple points of view about technology from others in various levels of workplace hierarchies. Using these new perspectives, the chief IT execu- tive augments his or her skills with the technology necessary for career success, expands his or her management value sys- tem, is increasingly motivated to act ethically, and enhances his or her executive presence.

3. Comprehension of technology process : Maturing chief IT executives accumulate increased understanding of workplace cooperation, competition, and advancement as they gain new cognitive skills about technology and a facility with business culture/etiquette, expand their management value system, perform business/ workplace actions to improve ethics about business and technol- ogy, and develop effective levels of executive presence.

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4. Stable technology integration : Chief IT executives achieve inte- gration with the business community when they have levels of cognitive and technological ability, organization etiquette/ culture, management values, business ethics, and execu- tive presence appropriate for performing job duties not only adequately but also competitively with peers and even higher- ranking executives in the workplace hierarchy.

5. Technology leadership : Leadership is attained by the chief IT executive when he or she can employ cognitive and tech- nological skills, organization etiquette, management, a sense of business ethics, and a sense of executive presence to compete effectively for executive positions. This chief IT executive is capable of obtaining increasingly executive-level positions through successful communication and workplace performance.

Performance Dimensions

1. Technology cognition : Concerns skills specifically related to learning, applying, and creating resources in IT, which include the necessary knowledge of complex operations. This dimension essentially establishes the CIO as technically pro- ficient and forms a basis for movement to more complex and mature stages of development.

2. Organizational culture : The knowledge and practice of proper etiquette in organizational settings with regard to dress, tele- phone and in-person interactions, punctuality, work comple- tion, conflict resolution, deference, and other protocols in workplace hierarchies.

3. Management values : Measures the individual’ s ability to articu- late and act on mainstream organizational values credited with shaping the work ethic— independent initiative, dedication, honesty, and personal identification with career goals, based on the organization’ s philosophy of management protocol.

4. Business ethics : Reflects the individual’ s commitment to the education and professional advancement of other employees in technology.

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5. Executive presence : Involves the chief IT executive’ s view of the role of an executive in business and the capacity to succeed in tandem with other executives. Aspects include a devotion to learning and self-improvement, self-evaluation, the ability to acknowledge and resolve business conflicts, and resilience when faced with personal and professional challenges.

Figure 12.4 shows a graphical view of the chief IT executive best practices arc. Each cell in the arc provides the condition for assess- ment. The complete arc is provided in Table 12.1.

Chief Executive Officer

When attempting to define CEO best practices, one is challenged with the myriad material that attempts to determine the broad, yet impor- tant, role of the CEO. As with most best practices, they are typically based on trends and percentages of what most CEOs do— assuming, of course, that the companies they work for are successful. That is, if their organization is successful, then their practices must be as well. This type of associative thinking leads to what scholars often term false generalizations. Indeed, these types of inadequate methods lead to false judgments that foster business trends, which are misinter- preted as best practices. Reputation is what would better define these trends, which usually after a period of time can become ineffective

Developmental dimensions of maturing

Dimension skill Technology competence

and recognition

Multiplicity of technology

perspectives

Comprehension of technology

process

Stable technology integration

Technology leadership

Technology cognition

Organization culture

Management values

Business ethics

Executive presence

Figure 12. 4 Chief IT executive best practices arc - conditions for assessment.

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Table 12.1 The Chief IT Executive Best Practices Arc

DIMENSION VARIABLE TECHNOLOGY COMPETENCE AND

RECOGNITION MULTIPLICITY OF TECHNOLOGY

PERSPECTIVES

Technology Cognition Understands how technology operates in business. Has mastered how systems are developed, hardware interfaces, and the software development life cycle. Has mastery of hardware, compilers, run-time systems. Has core competencies in distributed processing, database development, object-oriented component architecture, and project management. Is competent with main platform operating systems such as UNIX, WINDOWS, and MAC. Has the core ability to relate technology concepts to other business experiences. Can also make decisions about what technology is best suited for a particular project and organization. Can be taught how to expand the use of technology and can apply it to other business situations.

Understands that technology can have multiple perspectives. Able to analyze what are valid vs. invalid opinions about business uses of technology. Can create objective ideas from multiple technology views without getting stuck on individual biases. An ability to identify and draw upon multiple perspectives available from business sources about technology. Developing a discriminating ability with respect to choices available. Realistic and objective judgment, as demonstrated by the applicability of the technology material drawn for a particular project or task and tied to functional/ pragmatic results.

Organization Culture Understands that technology can be viewed by other organizations in different ways. Uses technology as a medium of communication. Understands that certain technological solutions, Web pages, and training methods may not fit all business needs and preferences of the business. Has the ability to recommend/suggest technological solutions to suite other business needs and preferences

Seeks to use technology as a vehicle to learn more about organization cultures and mindsets. Strives to care about what others are communicating and embraces these opinions. Tries to understand and respect technologies that differ from own. Understands basic technological needs of others.

(Continued)

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Table 12.1 (Continued) The Chief IT Executive Best Practices Arc

COMPREHENSION OF TECHNOLOGY PROCESS

STABLE TECHNOLOGY INTEGRATION TECHNOLOGY LEADERSHIP

Has the ability to relate various technical concepts and organize them with non-technical business issues. Can operate with both automated and manual business solutions. Can use technology to expand reasoning, logic, and what-if scenarios. Ability to use the logic of computer programs to integrate the elements of non-technological tasks and business problems. Ability to discern the templates that technology has to offer in order to approach everyday business problems. This involves the hypothetical (inductive/deductive) logical business skill.

Knowledge of technology is concrete, accurate, and precise, broad and resistant to interference from non-authentic business sources. Ability to resist or recover from proposed technology that is not realistic— and can recover resiliently.

Methods and judgment in a multidimensional business world is independent, critical discernment. Knowledge of technology and skills in technology can be transferred and can be used to self-educate within and outside of technology. Can use technology for creative purposes to solve business challenges and integrate with executive management views.

Can deal with multiple dimensions of criticism about technology. Can develop relationships (cooperative) that are dynamic and based on written communication and oral discourse. Ability to create business relations outside of technology departments. Has an appreciation of cyberspace as a communication space— a place wide open to dialogue (spontaneous), to give and take, or other than voyeuristic, one-sidedness. Ability to produce in teamwork situations, rather than solely in isolation.

Loyalty and fidelity to relations in multiple organizations. Commitment to criticism and acceptance of multiple levels of distance and local business relationships. Ability to sustain non-traditional types of inputs from multiple sources.

Can utilize and integrate multidimensions of business solutions in a self-reliant way. Developing alone if necessary using other technical resources. Can dynamically select types of interdependent and dependent organizational relationships. Ability to operate within multiple dimensions of business cultures, which may demand self-reliance, independence of initiative, and interactive communications.

(Continued)

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Table 12.1 (Continued) The Chief IT Executive Best Practices Arc

DIMENSION VARIABLE TECHNOLOGY COMPETENCE AND

RECOGNITION MULTIPLICITY OF

TECHNOLOGY PERSPECTIVES

Management Values Technology and cultural sensitivity. Global communication, education, and workplace use of technology can be problematic— subject to false generalizations and preconceived notions. Awareness of assumptions about how technology will be viewed by other organizations and about biases about types of technology (MAC vs. PC).

Can appreciate need to obtain multiple sources of information and opinion. The acceptance of multi- dimensional values in human character.

Business Ethics Using technology with honesty re: privacy of access and information. Development of ethical policies governing business uses of the Internet, research, intellectual property rights and plagiarism.

The use of information in a fair way— comparison of facts against equal sources of business information. Compassion for business information for which sources are limited because of inequality of technology access. Compassion for sharing information with other business units from a sense of inequality.

Executive Presence Has accurate perception of one’ s own potential and capabilities in relation to technology in the business— the technologically realizable executive self.

Understands how other executives can view self from virtual and multiple perspectives. Understands or has awareness of the construction of self that occurs in business. Focuses on views of other executives in multiple settings. Understands that the self (through technology) is open for more fluid constructions, able to incorporate diverse views in multiple settings.

(Continued)

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and unpopular. We must also remember the human element of suc- cess; certain individuals succeed based on natural instincts and talent, hard work and drive, and so on. These components of success should not be confused with theories that are scalable and replicable to prac- tice; that is, what best practices need to accomplish.

This section focuses on technology best practices of the CEO. These best practices are based on my research as well as other positions and

Table 12.1 (Continued) The Chief IT Executive Best Practices Arc

COMPREHENSION OF TECHNOLOGY PROCESS

STAB LE TECHNOLOGY INTEGRATION TECHNOLOGY LEADERSHIP

Can operate within multiple dimensions of value systems and can prioritize multi- tasking events that are consistent with value priorities. Ability to assign value to new and diverse technology alternatives—integrating them within a system of pre-existing business and technology values.

Testing value systems in new ways due to technology is integrated with long-term values and goals for business achievement. Some concepts are naturally persistent and endure despite new arenas in the technological era.

Use of technology and business are based on formed principles as opposed to dynamic influences or impulses. Formed principles establish the basis for navigating through, or negotiating the diversity of business influences and impulses.

Consistent values displayed on multiple business communications, deliverables of content, and dedication to authenticity. Maintains consistency in integrating values within technology business issues.

Technology is a commitment in all aspects of value systems, including agility in managing multiple business commitments. Commitment to greater openness of mind to altering traditional and non-technological methods.

Technological creativity with self-defined principles and beliefs. Risk-taking in technology-based ventures. Utilizing technology to expand one’ s arenas of business freedom. Exploring the business-liberating capacities of technology.

Operationalizes technology to unify multiple components of the self and understands its appropriate behaviors in varying executive situations.

Has regulated an identity of self from a multiplicity of executive venues. Methods of business interaction creates positive value systems that generate confidence about operating in multiple business communities.

Acceptance and belief in a multidimensional business world of the self. Can determine comfortably the authenticity of other executives and their view of the self. Can confirm disposition independently from others’ valuations, both internally and from other organization cultures. Beliefs direct and control multidimensional executive growth.

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facts that provide a defendable context of how and why they appear to be effective. However, as with the chief IT executive model, best practices cannot be attained without an arc that integrates mature organizational learning and developmental theories. Many of the CEO best practices reconcile with my interviews with CEOs and, in particular, with the two CEO case studies (of ICAP and HTC) discussed in Chapter 8. Other published definitions and support are referenced in my presentation.

In February 2002, Hackett Benchmarking, a part of Answerthink Corporation, issued its best practices for IT. Its documentation stated:

In compiling its 2002 best practices trend data, Hackett evaluated the effectiveness (quality and value) and efficiency (cost and productivity) of the information technology function across five performance dimen- sions: strategic alignment with the business; ability to partner with internal and external customers; use of technology; organization; and processes.*

The findings, as they apply to the CEO function, provide the fol- lowing generalizations:

• There was an 85% increase in the number of CIOs who reported directly to the CEO. This increase would suggest that CEOs need to directly manage the CIO function because of its importance to business strategy.

• CEOs supporting outsourcing did not receive the cost-cut- ting results they had hoped for. In fact, most broke even. This suggests that CEOs should not view outsourcing as a cost- cutting measure, but rather foster its use if there are identifi- able business benefits.

* Hackett Benchmarking has tracked the performance of nearly 2,000 complex, global organizations and identified key differentiators between world-class and aver- age companies, across a diverse set of industries. In addition to information tech- nology, staff functions studied include finance, human resources, procurement, and strategic decision making, among others. Study participants comprised 80% of the Dow Jones Industrials, two-thirds of the Fortune 100, and 60% of the Dow Jones Global Titans Index. Among the IT study participants are Agilent Technologies, Alcoa, Capital One Financial Corporation, Honeywell International, Metropolitan Life Insurance, SAP America, and TRW. (From PR Newswire, February 2002.)

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• CEOs have found that IT organizations that have centralized operations save more money, have fewer help-line calls than decentralized organizations, and do not sacrifice service qual- ity. This suggests that the CEOs should consider less busi- ness-specific support structures, especially when they conduct their business at multiple locations.

• CEOs are increasingly depending on the CIO for advice on business improvements using technology. As a result, their view is that IT professionals need advanced business degrees.

• CEOs should know that consistent use of IT standards has enabled firms to trim IT development costs by 41%, which has reduced costs for end-user support and training opera- tions by 17%.

• CEOs need to increase support for risk management. Only 77% of average companies maintained disaster recovery plans.

As we can see from these generalizations, they are essentially based on what CEOs are doing, and what they have experienced. Unfortunately, this survey addressed little about what CEOs know and exactly what their role should be with respect to overall man- agement, participation, and learning of technology. These “ best practices” are particularly lacking in the area of organizational learning and the abilities of the firm to respond to changing condi- tions as opposed to searching for general solutions. Let us look at each of these generalizations and discuss what they lack in terms of organizational learning.

CIO Direct Reporting to the CEO

The fact that more CIOs are reporting directly to the CEO shows an escalation of their importance. But, what is more relevant as a best practice is what that relationship is about. Some report about how often they meet. What is more important is the content of the inter- actions. What should the CEOs know, how should the CEOs con- duct themselves? What management and learning techniques do they apply? How do they measure results? My CEO interview research exposed the fact that many CEOs simply did not know what they

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needed to do to better manage the CIO and what they needed to know in general about technology.

Outsourcing

Outsourcing can be a tricky endeavor. In Chapter 3, I introduced the concept of technology as a driver and a supporter. I presented a model that shows how emerging technologies are initially drivers and need to be evaluated and measured using similar models embraced by marketing-oriented communities. I then showed how, through matu- ration, emerging technologies become supporters, behaving more as a commodity within the organization. I explained that only then can a technology be considered for outsourcing because supporter operations are measured by their economies of scale, reduced costs, increased productivity, or both (efficiency). Figure 12.5 shows that cycle.

Thus, what is missing from the survey information is the knowl- edge of where such technologies were with respect to this technology life cycle. Knowing this dramatically affects what the CEO should be expecting and what organizational learning concepts and factors are needed to maximize benefit to the organization.

Centralization versus Decentralization of IT

The entire question of how IT should or should not be organized must be based on a business that implements ROD. ROD includes the component called cultural assimilation, which provides a process,

Mini loop technology enhancementsTechnology driver

Evaluation cycle

Driver maturation

Support status

Replacement or outsource

Economies of scale

Figure 12.5 Driver-to-supporter life cycle.

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using organizational learning, to help businesses determine the best IT structure. To simply assume that centralizing operations saves money is far too narrow; the organization may need to spend more money on a specific technology in the short term to get long-term benefits. Where is this included in the best practices formula? My research has shown that more mature uses of technology in organiza- tions require more decentralization of IT personnel within the busi- ness units. The later stages of IT organizational structure at Ravell supported this position.

CIO Needs Advanced Degrees

I am not sure that anyone could ever disagree with the value of advanced degrees. Nevertheless, the survey failed to provide content on what type of degree would be most appropriate. It also neglected to address the issue of what may need to be learned at the undergradu- ate level. Finally, what forms of education should be provided on the job? What exactly are the shortfalls that CIOs need to know about business? And, equally important is the consideration of what educa- tion and learning is needed by CEOs and whether they should be so dependent on advice from their CIOs.

Need for Standards

The need for standards is something that most organizations would support. Yet, the Siemens case study showed us that too much con- trol and standardization can prove ineffective. The Siemens model allowed local organizations to use technology that was specific to their business as long as it could be supported locally. The real chal- lenge is to have CEOs who understand the complexity of IT stan- dards. They also need to be cognizant that standards might be limited to the structure of their specific organization structure, its business, and its geographical locations.

Risk Management

The survey suggested that CEOs need to support risk management because their backup recovery procedures may be inadequate. The

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question is whether the problem stems from a lack of support or from a lack of knowledge about the topic. Is this something that the chief IT executive needs to know, or is it just about the CEO’ s unwilling- ness to spend enough funds? The best practices component of risk management must be broader and answer these questions.

By contrast to the survey, we may consider a report issued by Darwin Research (“ A CRM Success Story,” November 1, 2002), which cited the recommended best practices of Christopher Milliken, CEO of Boise Cascade Office Products. He offered the kind of in- depth view of best practices that I feel is needed to be consistent with my research on ROD. Milliken participated in the implementation of a large-scale CRM system needed to give his customers a good reason to choose Boise. The project required an investment of more than $20 million. Its objective was to provide customers with better service. At the time of the investment, Milliken had no idea what his ROI would be, only that the project was necessary to distinguish Boise Cascade from myriad competitors in the same industry.

After the successful implementation of the project, Milliken was now in a position to offer his own thoughts about technology-related best practices that a CEO might want to consider. He came up with these six:

1. The CEO must commit to a technology project : Milliken was keen to express the reasons why the CRM project was important; he was intimately involved with its design, and made it clear that he had to be consulted, should there be any delays in the project schedule. KPMG (a major consulting firm) was also hired as a consultant to help implement the schedule and was held to the same level of excellence. What Milliken accom- plished, significantly, was to show his interest in the project and his willingness to stay involved at the executive level. Milliken’ s best practice here lies in his commitment, which is consistent with that of McDermott from ICAP and the CEO from HTC. They both realized, as Milliken did, that the CEO must have an active role in the project and not just allow the management team to get it done. Milliken, as did McDermott and the CEO of HTC, issued specific perfor- mance-related requirements to his employees and consultants.

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His participation sent a valuable message: The CEO is part of the supporting effort for the project and is also part of the learning process of the organization. Indeed, the situa- tion that Milliken faced and resolved (i.e., to jump in without knowing the expected returns of the project) is exemplary of the core tenets of ROD, which require the ability for an orga- nization to operate with dynamic and unpredictable change brought about by technology. In this case, the technology was crucial to distinguishing Boise Cascade, in the same way that electronic trading was for ICAP, and the billing system was for HTC. Yet, all three of these situations required a cer- tain behavior and practice from the company CEO. Thus, the most important best practice lies in the commitment and learning to the learning organization format.

2. Think business first, then technology : To understand why a tech- nology is needed, there must first be a supporting business plan; that is, the business plan must drive the technology or support its use. This best practice concept is consistent with my research. Indeed, Dana Deasy from Siemens realized it after a three-year investment in e-business, and McDermott clearly advocated the importance of a business plan over embellished technology. Another interesting and important result of the business plan was that it called for the creation of a centralized CRM system. Therefore, it became necessary to consolidate the separate business units at Boise into one corporate entity— providing central support and focus. This is another example of how ROD operates. The CRM project, through a validation process in a business plan, provided the strategic integration component of ROD. The strategy then influenced cultural assimilation and required a reorganization to implement the strategy or the new CRM system. Furthermore, Boise Cascade allowed its staff to experiment in the project, to make mistakes, without criticizing them. They were, in effect, implementing the driver-related concepts of technology. These driver concepts must be similar to the way organizations support their marketing activities, by which they accept a higher error ratio than when implementing a supporter activity. The CEO wanted everyone to give it their

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best and to learn from the experience. This position is a key best practice for the CEO; it promotes organizational learn- ing throughout the business.

3. Handcuff business and technology leaders to each other : Milliken understood that technology projects often fail because of a lack of communication between IT and other business enti- ties. The project represented many of the IT dilemmas that I discussed in Chapter 2, particularly relating to the new CRM system and its integration with existing legacy applications and, at the same time, creating a culture that could imple- ment the business strategy. To address this, Milliken first appointed a new CIO to foster better communication. He also selected a joint project leader from the business side, thus creating a joint project leadership team. What Milliken did was to form a new community of practice that did not exist before the project. The project, as with Ravell, represented an event that fostered the creation of organizational learning opportunities. As with ICAP, Milliken’ s company enlisted the support of executive-level consultants to help finalize the business plan and marketing strategy, as well as assist with change management. What exactly did Milliken do that rep- resents a best practice? From an organizational learning per- spective, he created communities of practice between IT and the business. That then is a true best practice for a CEO.

4. Get the show on the road : There was a not-to-be-questioned deadline that was instituted by Milliken. As I noted in Chapter 4, this type of management seems undemocratic, but it should not be confused with being nonparticipatory. Someone had to get this going and set expectations. In this case, both IT and business users were set to make things happen. Senior management endorsed the project and openly stated that it represented what could be a one-time opportu- nity to “ do something of great magnitude” (Dragoon, 2002). From a best practices perspective, this means that the CEO can and should provide the leadership to get projects done and that part of that leadership could be setting strategic dates. However, CEOs should not confuse this leadership with power-centralized management over IT-related projects.

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Communities of practice still need to be the driving force for inevitable success in ROD. Another important factor was Milliken’ s decision to create dual management over the proj- ect. Thus, Milliken was able to create an environment that required discourse between IT and the business.

5. Win over the masses for massive changes : As stated, the business plan called for a reorganization of other business units. This also required executives to rethink job descriptions and titles in relation to new processes. It also eliminated six redundant management-level jobs. Milliken engaged employees in a massive “ external-internal” marketing campaign. Employees participated in ad campaigns, and brochures were created for all staff. A video was also produced that defined the benefits to Boise Cascade customers. In essence, Milliken was com- mitted to communication and training. Similar to my experi- ence at Ravell, not everyone is comfortable with change, and resistance in the ranks is inevitable. As a result, the educa- tion and training programs at Boise were not enough. What was lacking was true organizational learning and knowledge management. There are two best practices that were defined from this experience. First, the CEO needs to engage in actively showing the importance that technology has to the organization, not only from an economic perspective, but also from a staff development point of view. The second best prac- tice comes from the example of what Boise Cascade did not do enough of: provide organizational transformation through knowledge management, reflective practices, and commu- nities of practice. This suggests that CEOs need to better understand and incorporate organizational learning concepts, so that they can be the catalyst for change as they are in other areas of the business. We saw support for this concept from both ICAP and HTC, where the actions of the CEO came from an organizational learning perspective.

6. Know that technology projects never end : ROD assumes, by def- inition, that technology is a variable, albeit an insistent one. Milliken’ s experience further supported this notion, in that he realized that Boise Cascade must continue to assess the impact of the CRM application. Another way of saying this

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is that the technology will continue to be viewed as a means to transform the business on an ongoing basis. Indeed, Milliken was planning to spend another $10 million on the next phase. So, from a best practices perspective, CEOs must recognize that technology investment never ends, but it moves to other phases of maturation, similar to the driver/supporter life cycle. Finally, the buy-in to this reality ensures the recogni- tion of organizational dynamism.

Based on the case studies and research presented thus far in this book, I can now formulate a list of 11 key planks that represent the core of what constitutes a technology CEO’ s set of best practices:

1. The chief IT executive should report directly to the CEO. 2. CEOs should be actively committed to technology on an

ongoing basis, as opposed to project-by-project involvement. 3. CEOs should be willing to be management catalysts to sup-

port new technology-driven projects. They, in effect, need to sometimes play the role of technology champion.

4. CEOs should focus on business concepts and plans to drive technology. In other words, technology should not drive the business.

5. CEOs should use consultants to provide objective input to emerging technology projects.

6. CEOs should establish organizational infrastructures that foster the creation of communities of practice. They need to create joint ownership of IT issues by fostering discourse between IT, business managers, and staff.

7. CEOs may need to take control of certain aspects of tech- nology investments, such as setting milestones and holding management and staff to making critical project dates.

8. CEOs need to foster cultural assimilation, which may lead to reorganization, since technology changes processes.

9. CEOs need to understand organizational learning and knowl- edge management theories and participate in organizational transformation.

10. CEOs need to understand how the technology life cycle behaves, with specific attention to the transition from driver activities to supporter functions. To that end, CEOs need to

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understand the short- and long-term investments that need to be made in technology.

11. CEOs should create organizations that can effectively oper- ate within technological dynamism. This process will educate management and staff to handle the dynamic and unpredict- able effects of emerging technologies. It will also foster the development of both middle-up-down and bottom-up man- agement of technology.

The issue is now to provide a linear development model for CEOs that enables them to measure where they are in relation to ROD and the best practices outlined.

The CEO Best Practices Technology Arc

Similar to the chief IT executive arc, the CEO best practices arc is an instrument for assessing the technology best practices of CEOs. The arc evaluates a CEO’ s strategic uses of technology and leader- ship by using a grid that charts competencies ranging from conceptual knowledge about technology to more complex uses of technology and business and how they are integrated in strategic business planning.

As with all arc models, the CEO version measures five principal stages of a CEO’ s maturity with respect to business applications of technology: conceptual, structural, executive values, executive eth- ics, and executive leadership. Each dimension or sector is measured in five stages of maturation that guide the CEO’ s executive growth managing technological dynamism. The first stage is being reflec- tively aware about their conceptual knowledge of technology and what it can do for the organization. The second is other centered- ness, by which CEOs become aware of the multiplicity of business uses of technology and the different views that can exist inside and outside the organization. The third is integration of business use of technology; a CEO can begin to combine how business plans foster the need for technology. The fourth is implementation of business/ technology process, meaning that the CEO understands how busi- ness applications and technology are used together and is resilient to nonauthentic sources of emerging technologies. Stage four rep- resents an ongoing commitment to implementing both technology

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and business applications. The fifth refers to strategic uses of tech- nology; CEOs have reached a stage at which their judgment on using technology and business is independent and can be used to self-educate. Thus, as CEOs grow in knowledge of business uses of technology, they can become increasingly more understanding of the multiplicity of uses, can become more integrated in how they conceptualize technology, can manage its implementation from an executive position, and can apply strategies to support new applica- tions of technology in the organization.

Definitions of Maturity Stages and Dimension Variables in the CEO Technology Best Practices Arc

Maturity Stages

1. Conceptual knowledge of technology : This first stage represents the CEO’ s capacity to learn, conceptualize, and articulate key issues relating to business uses of technology, organizational structures available, executive value methods, executive ethi- cal issues surrounding technology, and leadership alternatives that are needed to be successful with technology applications.

2. Multiplicity of business perspectives of technology : This stage indicates the CEO’ s ability to integrate multiple points of view from management, staff, and consultants about technol- ogy applications in business. Using these new perspectives, the CEO augments his or her conceptual skills with technol- ogy, has an expanded view of what organizational structures might work best, expands his or her executive values about technology uses, is increasingly aware of the ethical dilemmas with technology, and enhances his or her leadership abilities.

3. Integration of business uses of technology : Maturing CEOs accu- mulate increased understanding of how technology can sup- port the business, provide more competitive advantage, and have a more integrated understanding of how to use their conceptual skills about technology, of the alternative organi- zational structures available, of how to combine their business executive value and ethical systems, and how to develop effec- tive levels of executive leadership.

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4. Implementation of business/technology process : CEOs achieve integration when they can regularly apply their conceptual knowledge of technology, organization structures, executive values and ethics about technology, and executive leadership, appropriate for performing their job duties, not only ade- quately, but at a level that provides a competitive advantage for the organization.

5. Strategic uses of technology : Leadership is attained by the CEO when he or she can employ conceptual skills, develop new organizational structures as necessary, establish new values and ethics that are appropriate for the organization, and create a sense of executive presence to lead the organiza- tion strategically. This CEO is capable of having new vision about how business and technology can be expanded into new endeavors.

Performance Dimensions

1. Technology concepts : Concerns conceptual skills, specifically related to understanding how technology can be used in the business. This dimension essentially establishes the CEO as technically proficient, conceptually, and forms a basis for movement to more complex and mature stages of business/ technology development.

2. Organizational structures : The knowledge of the alternative organizational structures that can support the application of emerging technology in corporate settings with regard to roles, responsibilities, career paths, and organizational report- ing alternatives.

3. Executive values : Measures the CEO’ s ability to articulate and act on mainstream technological values credited with shaping the work ethic: independent initiative, dedication, honesty, and personal identification with career goals, based on the philosophy of the management protocol of the organization.

4. Executive ethics : Reflects the CEO’ s commitment to the edu- cation and professional advancement of the behavior of the organization as it relates to business uses of technology.

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5. Executive leadership : Involves the CEO’ s view of the role of an executive in business, and the capacity to succeed in tan- dem with his or her organizational resources. Aspects include a devotion to organizational learning and self-improvement, self-evaluation, the ability to acknowledge and resolve busi- ness/technology conflicts, and resilience when faced with per- sonal and professional challenges.

Figure 12.6 shows a graphic view of the CEO technology best practices arc. Each cell in the arc provides the condition for assess- ment. The complete arc is provided in Table 12.2.

Middle Management

Middle management, which comprises a number of tiers, is perhaps the most challenging of best practices to define. In Chapter 3, I strati- fied the different types of positions that make up middle managers into three tiers: directors, line managers, and supervisors. What is most important at this point is to determine the set of technology best practices for managers so that they can effectively operate under ROD. That is, technology best practices must be designed to contain the insights and skills for effective management of technology. This must include

1. Working with IT personnel 2. Providing valuable input to the executive management team,

including the CEO 3. Participating and developing a technology strategy within

their business units 4. Effectively managing project resources, including technical

staff 5. Leading innovative groups in their departments 6. Incorporating technology into new products and services 7. Developing proactive methods of dealing with changes in

technology 8. Investigating how technology can improve competitive

advantage.

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Table 12.2 CEO Technology Best Practices Arc—Detail

DIMENSION VARIABLE CONCEPTUAL KNOWLEDGE OF

TECHNOLOGY

MULTIPLICITY OF BUSINESS PERSPECTIVES OF

TECHNOLOGY

Technology Concept Understands concepts and definitions about technology and how it relates to business. Has conceptual knowledge of the software development life cycle. Understands high-level concepts about distributed processing, database development, and project management. Understands the definition and role of operating systems such as UNIX, WINDOWS, and MAC. Has the ability to relate technology concepts to other business experiences. Understands that different technology may be required for a particular project and organization. Can conceptualize how to expand the use of technology and apply it to business situations.

Seeks to manage by appreciating that technology can have multiple perspectives. Able to manage a process that requires validation about different opinions about business uses of technology. Can manage the different objective ideas from multiple technology views without getting stuck on personal biases. Has an ability to identify and draw upon multiple perspectives available from business sources about technology, particularly from independent sources. Developing a discriminating ability to create an infrastructure that can operate with multiple views. Committed to creating an organization that can learn through realistic and objective judgment, as demonstrated by the applicability of the technology material drawn for a particular project or task and tied to business outcomes.

Organizational Structures Understands that technology can be viewed by other organizations in different ways and may need different organizational structures. Can use technology as a medium of communication. Understands that certain technologies may need to be managed differently and need specific types of structures and expertise. Has the ability to comprehend recommend/suggested technological solutions to suite business needs and preferences.

Seeks to manage technology as a vehicle to learn more about what alternative organization structures are available from others. Strives to create a learning organization that cares about what other staff perceive as solutions. Committed to cultural assimilation that can change the need to restructure the organization. Tries to understand and respect technologies that differ from what the organization is currently using. Understands that the organization has multiple and different technological needs.

(Continued)

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Table 12.2 (Continued) CEO Technology Best Practices Arc—Detail

INTEGRATION OF BUSINESS USES OF TECHNOLOGY

IMPLEMENTATION OF BUSINESS/TECHNOLOGY

PROCESS STRATEGIC USES OF

TECHNOLOGY

Creates an organization that has the ability to relate various technical concepts and organize them with non-technical business issues. Can manage by operating with both automated and manual business solutions. Can use technology to expand business reasoning, logic, and what-if scenarios. Establishes business templates that allow technology to offer everyday business solutions. This involves the hypothetical (inductive/deductive) logical business issues.

Organization’ s use of technology is concrete, accurate, and precise, broad and resistant to interference from non-authentic technology business sources. Ability to resist or recover from faulty uses of technology that is not realistic without a supporting business plan.

Methods and judgment as a multidimensional CEO is independent, has critical discernment. Conceptual knowledge of technology can be transferred and can be used to self-educate within and outside of technology. Can use technology for creative purposes to create new business initiatives and integrate them with short- and long-term business goals.

Can deal with multiple dimensions of criticism about how technology can be used in the organization. Can develop relationships (cooperative) that are dynamic and based on written communication and oral discourse about how business can drive technological investments. Ability to create new business relations using technology with new and existing customers. Has an appreciation of cyberspace as a new market— a place wide open to dialogue (spontaneous), to provide new opportunities for business growth.

Commitment to open discussion of alternating opinions on technology and acceptance of varying types of structures to accommodate technology opportunities. Ability to sustain dynamic organizational structures.

Can design new structures to integrate multidimensions of business and technology solutions. Can dynamically manage different types of interdependent and dependent organizational relationships. Ability to manage within multiple dimensions of business cultures, which may demand self-reliance and confidence in independence of initiatives.

(Continued)

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Table 12.2 (Continued) CEO Technology Best Practices Arc—Detail

DIMENSION VARIABLE CONCEPTUAL KNOWLEDGE OF

TECHNOLOGY

MULTIPLICITY OF BUSINESS PERSPECTIVES OF

TECHNOLOGY

Executive Values Understanding of technology and cultural differences. Conceptually understands that global communication, education, and workplace use of technology can be problematic— subject to false generalizations and preconceived notions. Management awareness of responsibilities to address assumptions about how technology will be viewed by other departments and customers.

Sets conditions that foster the need to obtain multiple sources of information and opinion about how technology values. The propagation organizationally of acceptance that there can be multidimensional values in human character.

Executive Ethics Understands that there is a need to use technology with honesty re: privacy of access and information. Supports the development of ethical policies governing business uses of the Internet, research, intellectual property rights, and plagiarism.

Committed to creating an organization that uses information in a fair way— comparison of facts against equal sources of business information. Understands and is compassionate that business and technology information may have different levels of knowledge access. Recognizes the need for sharing information with other business units from a sense of inequality.

Executive Leadership Conceptualizes the need to have a leadership role with respect to technology in the business— the business and technologically realizable executive self.

Understands how other executives can view technology leadership differently. Understands or has awareness of the construction of self that occurs when taking on the integration of technology in business operations. Focuses on views of other CEOs in multiple settings. Understands that the self (through technology) is open for more fluid constructions, able to incorporate diverse views in multiple technology settings.

(Continued)

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As with CEO research, there are myriad best practices that have been offered as a method of dealing with the subject of technology management. Unfortunately, these practices usually are vague and intermingle management levels and departments; that is, it is diffi- cult to know whether the best practice is for the chief IT executive,

Table 12.2 (Continued) CEO Technology Best Practices Arc—Detail

INTEGRATION OF BUSINESS USES OF TECHNOLOGY

IMPLEMENTATI ON OF BUSINESS/TECHNOLOGY

PROCESS STRAT EGIC USES OF

TECHNOLOGY

Can manage multiple dimensions of value systems and can prioritize multi-tasking events that are consistent with value priorities. Ability to assign value to new and diverse technology business alternatives— linking them to legacy systems and processes.

Managing value systems in new ways because technology changes long-term values and goals for business objectives. Recognition that some concepts remain unchanged despite emerging technologies.

Management of technology and business are based on formed principles as opposed to dynamic influences or impulses. Formed executive principles establish the basis for navigating through or negotiating the diversity of business opportunities and impulses for investment in technologies.

Consistent management values displayed on multiple business goals, mission, and dedication to authenticity. Maintains management consistency in combining values regarding technology issues.

Business and technology are a commitment in all aspects of management value systems, including agility in managing multiple business commitments. Commitment to greater openness of mind to altering traditional and non-technological management methods.

Technology management creativity with self-defined principles and beliefs. Risk-taking in technology- based ventures. Utilizing technology to expand one’ s arenas of business development. Manages the business liberating capacities of technology.

Manages technology to unify multiple parts of the organization and understands how the process behaves in different business situations.

Has developed an executive identity of self from a multiplicity of management venues. Method of management creates positive value systems that generate confidence about how multiple business communities need to operate.

Acceptance and belief in a multidimensional business world of how to lead with technology. Can determine comfortably, authenticity of organization’ s executives and their view of the self. Can confirm disposition on technology independently from others’ valuations, both internally and from other organizations. Beliefs direct and control multi-dimensional leadership growth.

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the CEO, or some other level of management. We know from the research from Bolman and Deal (1997) that middle managers feel torn by conflicting signals and pressures they get from both senior management and the operations that report to them: “ They need to understand the difference in taking risks and getting punished for mistakes” (p. 27). According to Bolman and Deal (1997), best prac- tices for middle managers need to cover the following areas:

1. Knowledge management 2. Alignment 3. Leadership and commitment 4. Organization 5. Human resources 6. Opportunity management 7. Leveraging 8. Performance assessment

Their study covered more than 400 companies in the eight areas of concern. I extracted 10 middle management-related best practices from their study results and concluded that middle managers need to

1. Understand how to take a strategy and implement it with technology; that is, they need to create tactics for completing the project.

2. Establish team-building measures for linking technology with daily operations of the staff.

3. Foster the aggregation and collaboration of business unit assets to form peer groups that can determine joint efforts for implementing new technologies.

4. Stimulate their staffs using innovative strategies of value propositions and reward systems.

5. Create multifunctional teams that can focus on particu- lar aspects of how technology affects their specific area of expertise.

6. Follow common project management practices so that mul- titier and department projects can be globally reviewed by senior management.

7. Form project teams that can respect and perform on an action basis; that is, teams that are action oriented.

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8. Understand how to communicate with, and use, IT staff on projects.

9. Have a systematic process for gathering intelligence relating to pertinent technology developments.

10. Understand that customers are the drivers for technology tools provided by the organization.

On reviewing the different aspects of middle manager best practices with technology research, it appears that there are two focal points: (1) those best practices that address the needs of senior management, the CIO, and the CEO; and (2) those that are geared toward the management of the staffs who need to implement emerging technol- ogy projects.

This makes sense, given that the middle manager, notwith- standing whether a director, line manager, or supervisor, needs to deal with executive productivity-related issues as well as staff implementation ones. They are, as Bolman and Deal (1997) state, “ torn” by these two competing organizational requirements. Table 12.3 represents the combined list of technology-based best practices organized by executive best practices and implementation best practices.

Table 12.3 exemplifies the challenge that middle managers have in balancing their priorities. In accordance with the research, the best practices mentioned are implemented using methods of knowledge management, alignment, leadership and commitment, human resources, opportunity management, leveraging, and per- formance assessment. As with the other best practices, the middle manager technology best practices are limited because they do not address the specific needs of ROD, particularly organizational learning theories (with the exception of knowledge management). This shortfall is integrated into another developmental arc model that combines these theories with the preceding definitions of best practices.

The Middle Management Best Practices Technology Arc

The middle management best practices technology arc, as with others, can be used to evaluate a middle manager’ s strategic and operational

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uses of technology by using a grid that measures competencies rang- ing from conceptual knowledge about technology to more complex uses of technology and business operations.

The five principal stages defined by the arc determine the middle manager’ s maturity with business implementations of technology: cognitive, organization interactions, management values, project eth- ics, and management presence. There are five stages of maturation that guide the middle manager’ s growth. The first is becoming reflec- tively aware about one’ s existing knowledge with business technology and how it can be implemented. The second is the recognition of the

Table 12.3 Middle Manager Executive and Implementation Best Practices

EXECUTIVE-BASED MIDDLE MANAGER BEST PRACTICES

IMPLEMENTATION-BASED MIDDLE MANAGER BEST PRACTICES

1. Provide valuable input to the executive management team, including the CEO.

1. Understand how to communicate with and use IT staff on projects.

2. Incorporate technology into new products and services.

2. Effectively manage project resources, including technical staff.

3. Participate in developing a technology strategy within their business units.

3. Lead innovative groups in their departments.

4. Have proactive methods of dealing with changes in technology.

4. Understand how to take a strategy and implement it with technology; that is, create tactics for completing the project.

5. Focus on how technology can improve competitive advantage.

5. Establish team-building measures for linking technology with staff’ s daily operations.

6. Have a systematic process for gathering intelligence, relating to pertinent technology developments.

6. Foster the aggregation and collaboration of business unit assets to form peer groups that can determine joint efforts for implementing new technologies.

7. Understand that customers are the drivers for technology tools provided by the organization reward.

7. Stimulate their staffs using innovative strategies of value propositions and systems.

8. Create multifunctional teams that can focus on particular aspects of how technology affects their specific area of expertise.

9. Follow common project management practices so that multitier and department projects can be globally reviewed by senior management.

10. Form project teams that can respect and perform on an action basis; that is, teams that are action oriented.

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multiplicity of ways that technology can be implemented on projects (e.g., other business views of how technology can benefit the organiza- tion). The third is integration of business implementation with tech- nology, in which a middle manager can begin to combine technology issues with business concepts and functions on a project basis. The fourth is stability of business/technology implementation, in which the middle manager has integrated business/technology as a regu- lar part of project implementations. The fifth is technology project leadership, in which the middle manager can use their independent judgment on how best to use technology and business on a project-by- project basis. Thus, as middle managers grow in knowledge of tech- nology and business projects, they can become increasingly more open to new methods of implementation and eventually, autonomous with the way they implement projects and provide leadership.

Definitions of Maturity Stages and Dimension Variables in the Middle Manager Best Practices Arc

Maturity Stages

1. Technology implementation competence and recognition: This first stage represents the middle manager’ s capacity to learn, conceptualize, and articulate key issues relating to cogni- tive business technological skills, organizational interactions, management value systems, project management ethics, and management presence.

2. Multiplicity of business implementation of technology: Indicates the middle manager’ s ability to integrate multiple points of view during technical project implementations. Using these new perspectives, the middle manager augments his or her skills with business implementation with technology career advancement, expands his or her management value system, is increasingly motivated to act ethically during projects, and enhances his or her management presence.

3. Integration of business implementation of technology: Maturing middle managers accumulate increased understand- ing of how business and technology operate together and affect one another. They gain new cognitive skills about

3 2 6 InForMAtIon teChnolo GY

technology and a facility with how the organization needs to interact, expand their management value system, perform business/technology actions to improve ethics about busi- ness and technology, and develop effective levels of manage- ment presence.

4. Stability of business/technology implementation: Middle manag- ers achieve stable integration when they implement projects using their cognitive and technological ability; have organi- zation interactions with operations; have management values with their superiors, peers, and subordinates; possess project ethics; and have the management presence appropriate for performing job duties, not only adequately, but also competi- tively (with peers and higher-ranking executives in the orga- nization hierarchy).

5. Technology project leadership: Leadership is attained by the middle manager when he or she can employ cognitive and technological skills, organization interactions, management, a sense of business ethics, and a sense of management presence to compete effectively for executive positions. This middle manager is capable of obtaining increasingly executive-level positions through successful interviewing and organization performance.

Performance Dimensions

1. Business technology cognition : Pertains to skills specifically related to learning, applying, and creating resources in busi- ness and technology, which include the necessary knowledge of complex operations. This dimension essentially establishes the middle manager as “ operationally” proficient with tech- nology and forms a basis for movement to more complex and mature stages of development when managing technology projects.

2. Organizational interactions : This focuses on the middle man- ager’ s knowledge and practice of proper relationships and management interactions during technology projects. This pertains to in-person interactions, punctuality of staff, work

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completion, conflict resolution, deference, and other protocols in technology projects.

3. Management values : Measures the middle manager’ s ability to articulate and act on mainstream corporate values credited with shaping technology project work ethic: independent ini- tiative, dedication, honesty, and personal identification with technology project goals, based on the philosophy of manage- ment protocol of the organization.

4. Project ethics: Reflects the middle manager’ s commitment to the education and professional advancement of other persons in technology and in other departments.

5. Management presence: Involves the middle manager’ s view of the role of a project-based manager during a technology project implementation and the capacity to succeed in tandem with other projects. Aspects include a devotion to learning and self-improvement, self-evaluation, the ability to acknowl- edge and resolve business conflicts, and resilience when faced with personal and professional challenges during technology implementations.

Figure 12.7 shows a graphic view of the middle management tech- nology best practices arc. Each cell in the arc provides the condi- tion for assessment. The complete arc is provided in Table 12.4. The challenge of the middle management best practices arc is whether to emphasize executive management concepts (more organizationally intended) or event-driven concepts (project oriented). This arc focuses on project implementation factors and deals with best practices that can balance executive pressures with implementation realities. I sug- gest that senior middle managers, at the director level, who do not participate in implementation, set their best practices, based on the CEO maturity arc. Indeed, creating a separate arc for upper manage- ment would contain too many overlapping cells.

Summary

The formation of best practices to implement and sustain ROD is a complex task. It involves combining traditional best practice methods (i.e., what seems to work for proven organizations and individuals)

3 2 8 InForMAtIon teChnolo GY

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Table 12.4 Middle Management Technology Best Practices Arc—Detail

DIMENSION VARIABLE

TECHNOLOGY IMPLEMENTATION COMPETENCE AND

RECOGNITION

MULTIPLICITY OF BUSINESS IMPLEMENTATION OF

TECHNOLOGY

Business Technology Cognition

Understands how technology operates during projects. Has conceptual knowledge about hardware interfaces, and the software development life cycle. Has the core ability to relate technology concepts to other business experiences. Can also participate in the decisions about what technology is best suited for a particular project. Can be taught how to expand the use of technology and can apply it to other business situations.

Understands that technology projects can have multiple perspectives on how to implement them. Able to analyze what is valid vs. invalid opinions about business uses of technology. Can create objective ideas from multiple technology views without getting stuck on individual biases. An ability to identify and draw upon multiple perspectives available from project sources about technology. Developing a discriminating ability with respect to choices available. Realistic and objective judgment, as demonstrated by the applicability of the technology material drawn for a particular project or task and tied to functional/pragmatic outcomes.

Organizational Interactions Understands that technology projects require the opinions of other departments and staff in multiple ways. Understands that certain technological solutions and training methods may not fit all project needs and preferences of the business. Has the ability to recommend/suggest alternative technological solutions to suite other business and project needs and preferences.

Seeks to use technology projects as a vehicle to learn more about organization interactions and mindsets. Strives to care about what others are communicating and embraces these opinions on a project basis. Tries to understand and respect technologies that differ from own. Understands basic technological project needs of others.

(Continued)

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Table 12.4 (Continued) Middle Management Technology Best Practices Arc—Detail

INTEGRATION OF BUSINESS IMPLEMENTATION OF TECHNOLOGY

STABILITY OF BUSINESS/ TECHNOLOGY

IMPLEMENTATION TECHNOLOGY PROJECT

LEADERSHIP

Has the ability to relate various technical project concepts and organize them with non-technical business issues. Can operate with both business and technical solutions. Can use technology to expand reasoning, logic, and what-if scenarios. Ability to discern the templates that technology has to offer in order to approach everyday technology project problems. This involves the hypothetical (inductive/deductive) logical business and technology skills.

Knowledge of technology projects are concrete, accurate, and precise, broad and resistant to interference from non-authentic business and technical project sources. Ability to resist or recover from proposed technology that is not realistic— and can recover resiliently.

Methods and judgment in multidimensional technology projects are independent and use critical discernment. Operational knowledge of technology and project management skills can be transferred and can be used to self-educate within and outside of technology. Can use technology for creative purposes to solve business and project challenges and integrate with executive management views.

Can deal with multiple dimensions of criticism about technology-based projects. Can develop relationships (cooperative) that are dynamic and based on discourse. Ability to create project relations with IT, other departments, and customers. Has an appreciation of project communication— to foster open dialogue (spontaneous), to give and take, or other than voyeuristic, one-sidedness about the project. Ability to produce in teamwork situations, rather than solely in isolation.

Loyalty and fidelity to relations in multiple organizations. Commitment to criticism and acceptance of multiple levels of IT and business relationships. Ability to sustain non-traditional types of inputs from multiple sources during projects.

Can utilize and integrate multidimensions of project solutions in a self-reliant way. Developing alone if necessary using other technical and non-technical resources. Can dynamically select types of interdependent and dependent organizational relationships. Ability to operate within multiple dimensions of business cultures, which may demand self-reliance, independence of initiative, and interactive communications during project implementations.

(Continued)

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Table 12.4 (Continued) Middle Management Technology Best Practices Arc—Detail

DIMENSION VARIABLE

TECHNOLOGY IMPLEMENTATION COMPETENCE AND

RECOGNITION

MULTIPLICITY OF BUSINESS IMPLEMENTATION OF

TECHNOLOGY

Management Values Technology and cultural sensitivity during project implementations. Global communication, education, and project use of technology can be problematic— subject to false generalizations and preconceived notions. Awareness of assumptions about how technology will be viewed by other departments and staff and about biases about types of technology used (MAC vs. PC).

Can appreciate need to obtain multiple sources of information and opinions during project implementations. The acceptance of multidimensional values in human character as value during project design and completion.

Project Ethics Using technology on the project with honesty re: privacy of access and information. Development of ethical policies governing project uses of the Internet, research, intellectual property rights, and plagiarism.

The use of information in a fair way— comparison of facts against equal sources of project information. Compassion for differences in project information for which sources are limited because of inequality of technology access. Compassion for sharing information with other business units from a sense of inequality.

Management Presence Has accurate perception of one’ s own potential and capabilities in relation to technology projects— the technologically realizable manager.

Understands how other managers can view self from a virtual and multiple perspectives. Understands or has awareness of the construction of self that occurs in projects. Understands views of other executives and managers in multiple project settings. Understands that the self (thru technology projects) are open for more fluid constructions, able to incorporate diverse views in multiple settings.

(Continued)

3 3 2 InForMAtIon teChnolo GY

with developmental theory on individual maturation. The combina- tion of these two components provides the missing organizational learning piece that supports the attainment of ROD. Another way of comprehending this concept is to view the ROD arc as the over- arching or top-level model. The other maturity arcs and best practices

Table 12.4 (Continued) Middle Management Technology Best Practices Arc—Detail

INTEGRATION OF BUSINESS IMPLEMENTATION OF TECHNOLOGY

STABILITY OF BUSINESS/ TECHNOLOGY

IMPLEMENTATION TECHNOLOGY PROJECT

LEADERSHIP

Can operate project within multiple dimensions of value systems and can prioritize multitasking events that are consistent with value priorities. Ability to assign value to new and diverse technology project alternatives— integrating them within a system of pre-existing business and technology project implementation values.

Testing technology value systems in new ways during the project implementation is integrated with long-term values and goals for business achievement. Some project concepts are naturally persistent and endure despite new arenas in the technological era

Use of technology and business during project implementation are based on formed principles as opposed to dynamic influences or impulses. Formed principles establish the basis for navigating through, or negotiating the diversity of business influences and impulses during the project.

Consistent values displayed on multiple project communications, deliverables of content, and dedication to authenticity. Maintains consistency in integrating values within technology business issues during project implementation.

Technology is a commitment in all aspects of value systems, including agility in managing multiple project commitments. Commitment to greater openness of mind to altering traditional and non-technological methods on project implementations.

Technological project creativity with self-defined principles and beliefs. Risk-taking in technology-based projects. Utilizing technology to expand one’ s arenas of project freedom. Exploring the project management liberating capacities of technology.

Operationalizes technology projects to unify multiple components of the self and understands its appropriate behaviors in varying management situations.

Has regulated an identity of self from a multiplicity of management venues. Method of project interaction creates positive value systems that generate confidence about operating in multiple organizational communities.

Can determine comfortably, authenticity of other managers and their view of the self. Can confirm project-related disposition independently from others’ valuations, both internally and from other department cultures. Has direct beliefs and controls multidimensional management growth.

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represent the major communities of practice that are the subsets of that model. This is graphically depicted in Table 12.5.

Thus, the challenge is to create and sustain each community and, at the same time, establish synergies that allow them to operate together. This is the organizational climate created at ICAP, where the execu- tive board, senior and middle managers, and operations personnel all formed their own subcommunities; at the same time, all had the abil- ity for both downward and upward communication. In summary, this particular model relies on key management interfaces that are needed to support ROD.

Ethics and Maturity

The word ethics is defined in many different ways. Reynolds (2007) defines ethics as “ a set of rules that establishes the boundaries of gen- erally accepted behaviour” (p. 3). Ethics can also mean conforming to social norms and rules, which can be challenged by deviant behaviors of “ others.” Still other groups construct ethics as a moral code that a community agrees to uphold. Ethics often map to our values— like integrity and loyalty to others. What is ethical for one person may not be ethical for another. This issue frames yet another question: How does ethics relate to leadership, specifically leadership in technology?

Ethics became a heightened issue after the Enron scandal in the United States. The scandal had a huge effect on the IT industry because it resulted in Congress enacting the Sarbanes-Oxley (SOX) Act, which placed significant audit trail requirements on document- ing processes. Most of these processes existed in automated applica- tions; thus, IT was required to comply with the rules and regulations that the SOX Act mandated. Implementing the SOX Act became an immense challenge for IT organizations mostly because the rules of compliance were vague.

Most would agree that ethics are a critical attribute for any leader. The challenge is how to teach it. The SOX Act “ teaches” ethics by establishing governance by control— control of unethical behavior through catching deviants. However, history has shown us that devi- ants are not cured by laws and punishment; rather, they are simply contained. Unfortunately, containment does not eliminate or cure unethical behavior. Furthermore, deviants tend to find new ways to

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bypass controls and get around the system in time. On the other hand, educators more often see the solution as transforming behavior of the individual; that is, ethics can only be taught if the individual realizes its value. Value in ethical behavior becomes a systemic transforma- tion when the individual believes in its self-realization. Being ethical is then aligned with self-actualization and adult maturity. So, ethics can be aligned with maturity in the same ways that the maturity arcs presented were mapped to leadership. Why is this so important for IT leaders? The SOX Act answered this question because it clearly identified the IT function as the most critical component of com- pliance. Unethical behavior in technology-based systems can damage the greater good, which places a big responsibility on the IT function.

I would suggest that IT ethics and leadership are very much linked. It is a very important responsibility for technology executives to pro- vide direction to their firms on how technology and ethics are inte- grated and how they can transform individuals to value conformance without the overuse of governing controls. Firms must use organi- zational learning tools as the vehicle to promote such conformance through changes in behavior. Unfortunately, many executives, includ- ing those in IT, practice governance much more than influence. I am not suggesting the elimination of controls, but rather, that leadership should depend less on governance and more on effecting behavioral change. In other words, the key to developing strong ethics within an IT organization is leadership, not governance. An important compo- nent of leadership is the ability to influence the behaviors of others (without exerting control or power). The real power of leadership is to use influence to effect ethical behavior as opposed to demanding it.

How do we create ethical IT organizations? Further, how can a technology executive provide the necessary strategy and influence to accomplish firm-wide ethical transformation? The first strategy, for a number of reasons, should be to create an ethical IT organization as the model:

1. The technology executive has control over that organization. 2. Most IT ethical problems today emanate from technology per-

sonnel because of their unusual access to data and information. 3. IT is positioned to lead the direction, since it is its area of

expertise.

3 3 6 InForMAtIon teChnolo GY

So, IT can set the example for technology-related ethics for the entire organization by establishing its own level of compliance by a “ way of being,” as opposed to a way of being managed. Often, this way of being can evolve into a code of behavior that can become the cultural “ code” of the organization itself. This code of ethics should address and be limited to such IT-related issues as:

• Privacy : Because of their access to transactions over the Internet, IT professionals must respect the privacy of infor- mation of others. Their code of ethics should go beyond just e-mail transactions to include access to personal data that may be stored on desktops or data files.

• Confidentiality : This differs from privacy because the data are available to IT in the normal transactions of business. That is, the data are captured or used in the development of an application. IT personnel need to keep such information con- fidential at all times— not only for the employees of the firm but also for clients and vendors.

• Moral responsibility : IT needs to protect the organization from outside abuses or questionable transactions coming into and leaving the company. Protection can also include blocking access to certain websites that are dangerous or inappropriate. This practice should not be regarded as a control, but rather, as a moral responsibility of any employee. Of course, there needs to be careful objectivity in how the moral code is actu- ally executed when a problem is identified.

• Theft : Removing information that belongs to someone else can be construed as a form of theft. Theft should always be regarded as an offense punishable by law— that is, above and beyond rules and regulations of the company.

These are only examples of areas in which an ethical code might be applied. Such a code must be implemented in IT as a framework for how people are employed and as a basis for promotion. Again, governance plays an important part because unfortunately there will always be individuals who violate ethics. What we need are organiza- tions that promote and defend ethics to the greatest possible extent. This way of being is consistent with the core definition of a learn- ing organization in that ethics must inevitably be part of the fabric

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of the culture and evolved within it. With IT serving as a model, the technology executive can act as the champion for implementation company-wide. This chapter has shown that ethics are intrinsically linked to maturity. Indeed, every arc contained a dimension that con- tained an ethical dimension. Perhaps if such ethical practices existed at Enron, the “ learning organization” there could have stopped the abuses.