Chief Transformation Officer and Chief Information Officer : romance or cold war?

In today's fast-paced business environment, the role of the Chief Transformation Officer (CTO) has emerged as a crucial partner to the Chief Information Officer (CIO). Over the years, we have had the opportunity to witness how this collaboration can shape organisations' success. However, we have also observed examples where the union didn't get succesful. This article aims at synthetising our learnings on how to make this union succesful.

Complementarity of the roles

First, it is important to stress that the roles of the Chief Transformation Officer and Chief Information Officer are inherently distinct.

The Chief Information Officer oversees the organisation's Information Technology operations and strategy, ensures that technology investments align with business goals while providing operational stability.

The Chief Transformation Officer encompasses a broad range of responsibilities that include new business models development, compliance enhancements, human aspect of organisational change…

However, these roles often intersect - hello "digital transformation" - as transformation initiatives very often call for a technological approach. With the growing importance of digital capabilities in driving organisational change, the collaboration between the CTO and CIO becomes obvious.

Synergy or Clash ?

When It Works: The Power of Clear Governance

One of the key insights we forged in our experience is the importance of having a clear governance. In successful scenarios, we noticed that transformation leaders and CIOs were on the same page, speaking a common language that fostered collaboration rather than competition. This harmony often arised from a shared authority, typically with the Chief Executive Officer acting as an referee.

Additionally, dedicated moments for alignment, such as roadmapping sessions or arbitrage boards, played a pivotal role in ensuring that everyone was moving in the same direction.

When It Falls Short: The Paroshial Behaviour

We have also encountered organisation where every sensitive topic would become an arm wrestling.

Examples of topics :

1. CIO-sponsored projects aimed at modernising legacy systems often struggle to be prioritised over initiatives that directly impact revenue.

2. Other side of the spectrum : Minimum Viable Products and quick wins projects promoted by transformation initiatives can conflict with IT heavy backlog, established security protocols and architectural principles.

In organisations who failed to navigate these situations effectively, we would usually observe three combining factors :

1. The Chief Information Officer and Chief Transformation Officer were coming from different backgrounds (corporate, consulting, startup…)

2. They both misunderstood each other’s daily life and challenges.

3. Furthermore, they were not reporting to the same Head and lacked a dedicated forum for collaboration.

Key Success Factors for Effective Collaboration

Throughout our journeys, we have consistently highlighted the complementary skills that Chief Transformation Officers and Chief Information Officers bring to the table. CIO departments provide the operational stability and digital strike force, while the CTOs drive innovation and transformative change. The balanced leadership dynamic is crucial for the succesfull transformation of organisations. Here are three of the key ingredients :

1. Empathy

It is not enough to simply hold complementary roles; there is a need for them to understand each other's perspectives. In our experience, Chief Transformation Officers should be a minimum tech-savvy even if they are not expected to be experts (example : understand the concept of an API, understand the IT landscape and the governance within the applications and data). Similarly, the CIOs must keep the organisation’s OKRs and overall strategy as their "North Star".

Tips : shared semantic on concepts, single source of truth connecting transformation iniatives with the IT landscape.

2. Business-Drive

Both leaders must be fluent in the language of business operations. In our experience, this often involves field immersion and hands-on interactions with business teams. By engaging directly with the operational side of the business, CTOs and CIOs can foster a deeper and common understanding of the challenges and opportunities that arise in day-to-day operations.

Tips : immersion days with the business, single source of truth connecting business operations (processes, teams…) with transformation iniatives and IT landscape.

3. Sharing Interests

To finish, let’s not forget those two leaders are probably both ambitious human beings who also legitimately operate with some of their own interests in mind. This is why it is crucial to align these individual interests together and with those of the organisation. By focusing on shared business goals such as revenue growth, operational excellence, and compliance, rather than metrics like IT budgets or the number of projects delivered in a year, both leaders can collaborate more willingly.

Tips : shared individual objectives.

Conclusion

Romance or Cold War ? It does not really matter as long as there is the alignment to ensure that technology and transformation initiatives are prioritised in a way that drives overall organisational success.

If you want to know more how we can help you build and sustain this alignement, please contact us !