Techweb
CMP Media / Optimize - Business Strategy & Execution for CIOsCMP MediaOptimize
Optimize Magazine DisciplinesExpertsGap AnalysisDiscussionsWhite PapersExecutive Events Information Week Optimize Magazine
Optimize Magazine
Optimize Magazine
Envisioning Growth
Strategy of disctinction
Email
Reprint
Discuss
 Story contents


The second element is strategy, but not in the traditional sense of two, three, or five years out. Here, strategy defines the distinctive competitive advantages that will bring the company closer to its raison d'tre.

Management at United Parcel Service would be troubled if people experienced it only as "the package-delivery company." Owing to its sophisticated and visionary concept of IT, UPS has executed a strategy that goes far beyond handling packages. Over the years, with IT at the core, the company has emerged at the center of every crucial logistics step in its clients' operations. From shipping the raw materials for a product to processing payment for its final sale, the vision strategy is to leverage IT so powerfully that UPS will eventually morph into a company that helps businesses manage their supply chains, store their inventory, repair their products, answer their phones—and deliver their packages. By the end of 2002, this strategy—germinating from IT, a noncore business—had already accounted for 25% of revenue and remains one of UPS' distinctive competencies. Finally, purpose and strategy remain only intellectual concepts unless employees have principles and values that guide their action. What should be the hallmarks of great management in your company? How do you view innovation, risk, and mistakes? How do you treat customers and one another? These and myriad other factors are determined by a culture, yet the foundation of any corporate culture is built on a set of values. When these values aren't predetermined and continually reinforced, other values—and typically ones counterproductive to performance—will emerge.

Setting a vision requires a planning or executive group, usually selected by the CEO. Even at this early stage, it should include the CIO, whose input on the viability of vision execution through IT will be invaluable. In fact, nearly 75% of CIOs are members of their company's executive group.

Whether at the corporate or IT level, each person should discuss his or her vision. Going through the process in detail lets the group map strategic issues and perspectives, and should yield diversity and richness. The group should keep in mind questions addressing each of the three core elements of the vision—raison d'tre, strategy, and values. The idea is to move the process from an individual sense of commitment to a shared, group perspective.

Articulating the vision is only part of the job. One of the common disconnects is the belief that once a vision is defined, it will somehow get implemented on its own. If a growth vision is to deliver on its potential, management has to consider how it's implemented—how it filters through technology, finance, and corporate culture—from the outset. If it doesn't come "alive" within the company, then people will justifiably become cynical about it.

Dow Chemical's organizational vision, for example, elaborates on its principle of sustainable development and continuously seeks to balance economic, environmental, and social responsibilities. The IT function takes its cues from the broader vision and focuses on applying technology to enrich customer interactions and improve internal efficiencies. At Dow, there's enormous collaboration between the business and IT teams; together, they have consistently developed innovative solutions that help Dow grow successfully.

Too often, CIOs fall into the "mission trap," focusing on keeping the technology structure running, meeting the needs of people in other functions, and planning for the short term. Of course, these aren't to be de-emphasized. But visionary CIOs keep asking themselves and their staffs how their function can help the company reach its far longer-term vision. In effect, these leaders ask the organizational equivalent of the existential question most people face at some point in life: Why do we exist? Rather than focusing solely on "what we do"—which keeps you bounded by a set of activities and deliverables—asking, "Why do we do what we do?" opens up new possibilities.

If there's no companywide vision, take a leadership role and influence the CEO to think about a vision process. Even if business is flat or down, jump in: Senior management is often more open than ever to rethinking the larger questions that can lead to success—or even survival. This is where friendly guerrilla tactics are required. Bring your band of IT brothers and sisters together in small groups and listen to their ideas about how IT should be supporting the company. Encourage them to think big, not on a technical level.

Ultimately, a great vision needs great champions devoted to its cause, and the CIO must be comfortable and effective in this role. A vision helps businesspeople make decisions about what they need to achieve their goals. This, in turn, helps technology people build the tools required. And, you'll get enormous buy-in from IT people. Their own capacity will be enhanced because they'll now understand why they're doing what they're doing. There's no better time than now to engage in this process.

Mark Lipton is author of Guiding Growth: How Vision Keeps Companies on Course (Harvard Business School Press, 2003).

See related articles:

  • Chief Change Officers, April 2002
  • Launching Cycles Of Leadership, August 2002

  • Optimize Magazine
    Optimize Magazine Marketplace (Sponsored Links)

    Buy a Link Now


    Optimize Magazine Optimize Magazine Optimize Magazine Optimize Magazine Optimize Magazine
    Optimize Magazine Optimize Magazine
    Optimize Magazine