what’s the ROI on that?

This hard truth is one most IT leaders miss, according to Uzi Dvir, global CIO at digital adoption platform WalkMe. In his experience, Dvir says, fewer than 5% of CIOs spend any time talking about business outcomes or measuring the business outcomes created by the technology they deploy.

“The CIOs I speak with often only look at cost,” Anderson says. “And then they’re challenged with, ‘What’s the ROI?’” That’s a question CIOs often can’t answer, he says. Back when he was in a different CIO role years ago, he was rolling out some automation systems. “The finance group would say, ‘What’s the ROI on that?’ We would say, ‘We’ve got this infrastructure, this application, the training, and the rollout. There is no ROI.’”

Today’s CIOs can’t afford to make that mistake. “It’s important to measure business outcomes, not just technology,” says Damon Venger, CIO at CompuCom, a managed services provider based in Boca Raton, Fla. “You implement a new piece of software. You completed the project, it’s live and has 10,000 users. You declare victory because it’s done. But if the business outcomes are not there, it’s not a success.” And that means business and IT are in disagreement, he says. “IT says success; business says failure.”

Uzi Dvir

"7 hard truths of business-IT alignment," by Minda Zetlin. CIO. October 31, 2022

control your expenses

Control your expenses better than your competition. This is where you can always find the competitive advantage. For twenty-five years running - long before Wal-Mart was known as the nation's largest retailer - we ranked number one in our industry for the lowest ratio of expenses to sales. You can make a lot of different mistakes and still recover if you run an efficient operation. Or you can be brilliant and still go out of business if you're too inefficient.

Sam Walton

Sam Walton, Made in America by Sam Walton & John Huey. Bantam Books. 1992. p. 248, 249

sometimes that requires shooting the culprit

If you don't zero in on your bureaucracy every so often, you will naturally build in layers. You never set out to add bureaucracy. You just get it. Period. Without even knowing it. So you always have to be looking to eliminate it. You know when Tom Watson, Sr. was running IBM, he decided they would never have more than four layers from the chairman of the board to the lowest level in the company. That may have been one of the greatest single reasons why IBM was successful. 

A lot of this goes back to what Deming told the Japanese a long time ago: do it right the first time. The natural tendency when you've got a problem in a company is to come up with a solution to fix it. Too often, that solution is nothing more than adding another layer. What you should be doing is going to the source of the problem to fix it, and sometimes that requires shooting the culprit.

I'll give you an example that just drove Sam crazy until we started doing something about it. When merchandise came into the back of a store, it was supposed to be marked at the right price or marked correctly on the spot. But because it often wasn't getting done properly, we created positions called test scanners, people who go around the stores with hand-held scanners, making sure everything is priced correctly. There's another layer right there, and Sam didn't ever visit a store without asking if we really needed these folks. 

Well, we still have some, but what we've done is over-haul our back-office procedures to make sure we get it right more often the first time, and, in the process, we eliminated one and a half people out of the office in every Wal-Mart store in the company. That's big bucks. 

Really it's a pretty simple philosophy. What you have to do is just draw a line in the dirt, and force the bureaucracy back behind that line. And then know for sure that a year will go by and it will be back across that line, and you'll have to do the same thing again. 

David Glass

Sam Walton, Made in America by Sam Walton & John Huey. Bantam Books. 1992. p. 232

the pursuit of value

The trigger for any corporate transformation is the pursuit of value. Ideally, that entails both improving efficiency (through streamlining and cost cutting) and reinvesting in growth. But many transformation efforts derail because they focus too narrowly on one or the other.

In some cases, attempts to streamline the business through productivity improvements, outsourcing, divestments, or restructuring undermine growth. The cuts are so deep that they hollow out capabilities, sap morale, and remove the slack that could have fueled new endeavors.

Bharat N. Anand and Jean-Louis Barsoux

"What Everyone Gets Wrong About Change Management," Harvard Business Review. November-December 2017.