--by David McCulloch, Vice President, Text
100,
davidm@text100.com
There's an old joke among IT buyers: What's the difference
between a software salesman and a used-car salesman? A used-car
salesman knows when he's lying.
A bit cynical, yes, but reflective of the environment created
by nightmare IT deals such as Oracle and the State of California,
and recent data from CIO Magazine showing that an overwhelming
seventy percent of CIOs expect better partnering experiences with
systems integrators than vendors.
High-tech communications professionals hoping to influence a
CIO's buying decision could easily be disheartened by the bleak
picture, but when the industry's existence hinges on the stream
of checks coming from the CIO's office, vendors can't avoid CIOs
for long. As CIO Magazine reports, eighty percent of
the US$50bn companies worldwide spend on reengineering is IT-specific
and managed by CIOs.
This combination makes CIOs the ultimate CRM database contact
and simultaneously the ultimate communications challenge. But
while the assistant to the CIO may typically rank up there with
Cerberus as one of the finest gatekeepers, there is evidence to
suggest that engaging CIOs is not quite the Herculean task it
appears. A recent survey by the Financial Times, for
example, suggests that CIOs don't actually hate their vendors;
it's just that the former is frequently misunderstood by
the latter.
The Financial Times article "Changing Role of
the CIO" highlights the fact that many CIOs feel caught in
'professional limbo'—somewhere between a future as strategic
business planner and past glory as a computer specialist. While
they are increasingly the engineers of business change, CIOs are
still not beyond being summoned into the CEO's office to retrieve
a corrupted Word file.
For communications strategists then, the key to creating programs
that open doors—or at least keep CIOs turning the pages
of InformationWeek—is a deeper understanding of
the challenges associated with the CIO role and the priorities
at the top of the CIO agenda.
Steve Astle, senior vice president of media research consultancy
Context Analytics, surveys the latest worldwide writing on CIO's
top priorities and offers some pearls of wisdom on the communications
programs most likely to resonate with the ultimate IT budget holder.
- Focus on management disciplines, not demos
- One might expect security or compliance to top the list of
CIO priorities, but recent issues from the Financial Times
and CIO Magazine highlight a quite different force
as having the most powerful impact on the world (and priorities)
of the CIO: a major shift in the role of the CIO away from technical
planning and implementation towards strategic planning. While
CIOs' roles already span technical, business and organizational
remits, these findings clearly indicate that today's CIOs are
as interested in discussions about people and financial management
skills as they are cutting-edge product features. To stand out,
focus your communications strategies accordingly.
- 'Upsell' the CIO, not just the software
– In January, Gartner Executive Programs' (EXP)
survey revealed that two-thirds of CIOs see themselves as 'at
risk' based on the CEO's view of IT and its performance. Many
are clearly still suffering from the IT hangover caused by the
overspend/under-perform hype of the 1990s. Vendor communications
teams have a key role to play here in helping CIOs report their
successes with case studies that speak of business enablement,
not just cost reduction.
- Sell fear and fear resolution (it still works)
– When it comes to a specific technology issue, security
is still the top dog in the world of the CIO. Consistent with
the many security-driven headlines that dominate the IT press,
a recent CIO survey by European IT news portal Silicon.com
revealed that ninety percent of respondents considered IT expenditure
on email security their top priority in 2005. Eighty percent
ranked expenditure on anti-spam, monitoring and antivirus technology
equally highly. As HYPERtext Issue 2 reported, smart
vendors are not necessarily those who capitalize on fear about
specific risks, but those who recognize the opportunities such
risks inhibit and focus on removing the barriers to success.
In other words, sell the vision, not the journey.
- Ch-Ch-Ch-Changes – Change isn't
a new theme in business. If anything, it is the theme in every
business, and CIOs, more than most, have become change leaders,
spending an estimated US$40bn on reengineering. While CIOs aren't
necessarily driving that change, they are central to it. Vendors
who demonstrate both an understanding of the issues surrounding
IT change and an ability to manage and minimize organizational
change on behalf of CIOs will offer a compelling proposition.
- The 'O' word – Whether
it's larceny on a grand scale by Indian call center employees
(Citibank) or negative press resulting from offshoring-related
job cuts (HSBC, Delta, Wachovia, Bank of America), outsourcing
and the management of outsourced teams remain two of the toughest
(and most common) issues a CIO faces. Whether moving jobs overseas,
or simply out of state, CIOs need to know that vendors have
experience managing both the human and public relations issues
associated with outsourcing decisions. Bringing a PR expert
into the deal to counsel the CIO on internal and external communications
could be a smart move for vendors seeking to differentiate themselves.
- Help the business be a good partner –
'Vendor management' is repeatedly one of CIO Magazine's
top issues. It has spawned plenty of ink but also a new acronym
and a new direct report for CIOs. Some very high-profile buyers
have created VMOs—vendor management officers—in
recent times (Aflac, American Red Cross, Blue Cross Blue Shield)
and it's clear that vendors must learn about the role and how
it differs from a purchasing function in order to more effectively
sell and manage relationships with CIOs.
- It's about the people, dummy –
VMOs may well provide CIOs with new focus and power in negotiating
with vendors, but as Gartner's EXP survey reveals, finding
the right talent (not just the right price) remains a bigger
issue for CIOs. Only thirty-nine percent of CIOs believe they
have the right people to meet current and future business needs.
Additionally, only twenty percent of CIOs who rate business
process improvement among the top five priorities for 2005 believe
the IT organization has the necessary skills to implement this.
Vendors—and communications professionals—have a
huge opportunity to address the skills gap by positioning themselves
as resource-rich and deep in experience. Thought leadership,
coupled with ability to execute, is still a good way to kick
open that CIO door!
David McCulloch is vice president for
Text 100 U.S. He's a longtime tech PR pro and an avid traveler.
To talk trends or Tibet, contact David at davidm@text100.com.