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It is not typical for a CIO to routinely work with business leaders
on their strategy and translate it into action, and then be asked
by the CEO to manage business strategy worldwide. Nor is it typical
that the CEO asks the CIO to run a line of business in addition
to the IT function. A CIO would not be expected to manage
the process of opening 10,000 seasonal tax preparation locations
and hiring 100,000 seasonal tax preparers, but that’s what happened
at H&R Block, a tax and financial services company. These
responsibilities are typical for CIOs who are responsible for IT governance
and supporting the business strategy. We’ll refer to them
as “strategic CIOs” for clarity.
The strategic CIO is a business leader who leverages IT to
add value and gain a competitive advantage. The strategist’s
focus is on how a company creates shareholder value and serves
its customers. Rather than being focused primarily on internal operations,
the strategic CIO looks at the company from the outsidein
by asking how the company is perceived by customers and how
competitors apply IT to compete. The role of the strategic CIO
is focused on business strategy and innovation. This broader,
more business-oriented, and strategic focus is the direction for
the CIO role.
Marc West, the senior VP and CIO at H&R Block, began as a
“traditional CIO,” focusing 95 percent of his efforts on the technology
foundation. In preparing for tax season, CIO West was engaged
in delivering tax preparation software for the company’s seasonal
storefront locations. This activity helped him to acquire insight into
the core business, operations, and how customers are served. This
further led him to compare what H&R Block was doing vis-à-vis the
competition, thus gaining a big-picture perspective of the industry.
He shared his strategic insights with the CEO and management
team. Encouraged by the CEO, CIO West continued his “outsideinside”
strategic assessment, gaining an industry-wide, businessoriented
strategic mindset. The CEO then asked CIO West to lead
a new line of business, driving growth in the commercial markets.
Sources: Compiled from Ehrlich and West (2007) and hrblock.com.
Discussion Questions: Why has the role of CIO expanded? What are
the benefits of this strategic CIO role to the company?