The Transformational CIO: Leadership and Innovation Strategies for IT Executives in a Rapidly Changing World

What's Really Important to the Business?

One of the best management techniques for developing and maintaining good partnerships between IT and the business is by formally linking IT systems to business key performance indicators (KPIs). That usually means going beyond the standard conversation with a business leader who tells you that all he or she cares about is growing revenue and improving profitability. You have to be willing to probe, dig, and investigate—like a good detective!

“You need to find out what's really important to the business,” says Jay. “Everyone immediately says revenue growth and profit. But typically there are five to ten underlying measures that most business people focus on. So you really have to work with the various businesses to find out what those measures are.”

In some business units, for example, on time and in full delivery of products to customers is a critical KPI, because the customers literally can't do any work if the products aren't where they're supposed to be. A quick scan of the unit's balance sheet might not reveal this crucial fact. But the IT talent assigned to the business unit should be capable of digging beneath the surface, discovering what the unit really needs, and relaying that information to senior IT management so it can be translated into an operational strategy. Jay explains how this works in the real world:

Once you've found the KPIs that are important to the business, then your next step is figuring out which IT systems are ...