Managing Information Technology

Chapter 1 • Managing IT in a Digital World 7

Business

Unit #1

VP (IT)

Individual

CEO or

President

Business

Unit #2

VP (IT)

Retirement

Services

Business

Unit #3

VP (IT)

Group

Corporate

Applications

Payroll

HR

CIO

Enterprise

Architecture

Planning and

Finance

Systems

Operations

FIGURE 1.2 Typical Example of IS Organization Chart for a Large Company with Multiple Business Units

IT Leadership Roles

Many organizations today have created an officer-level
position for the senior IT executive in the organization: the
chief information officer (CIO).Although in other organi-
zations, the senior IT leader may not be formally designated
as a CIO, all of today’s IT leaders are all expected to work
closely with other senior managers to keep the company’s
IT resources aligned with the goals of the business. Senior
IT leaders may report directly to a president or CEO or may
report to another officer in the company—such as a chief
financial officer (CFO) or chief operating officer (COO).
CIOs and other senior IT leaders come from a vari-
ety of backgrounds. Some managers are chosen to lead the
IT organization because of their in-depth technical knowl-
edge, but others may be chosen because of their abilities to
work well with senior business leaders, not because of
their technical know-how.
A typical organization chart for an IS department in a
large company that has multiple business units is shown
in Figure 1.2. Reporting to this CIO are IT managers
responsible for system operations (data centers and
networks), technology and financial planning for the
IS department, designing and building the company’s
IT architecture, and acquiring and maintaining software
applications. The latter includes IT managers over corpo-
rate applications (payroll and HR functions) as well as three
IT vice presidents who are responsible for acquiring and
maintaining applications for the company’s three business
units. Unlike the other IT managers, these three vice
presidents have a direct reporting relationship to the CIO

(indicated by the solid lines) as well as a “matrix” reporting

relationship to the general managers of the business units

they support (indicated by the dotted lines). This dual

reporting relationship helps ensure that the IS department’s

resources are well aligned with the business; it is one

approach to establishing and maintaining a strong

business/IT relationship.

Other important new roles for IT managers have also

emerged. For example, some companies have created a

chief security officer (CSO) position to plan for and moni-

tor compliance with new federal laws and reporting

requirements and to ensure that appropriate investments are

made in technologies and procedures to manage IT security

risks. Other new roles at the middle-management level help

ensure that contracts with key outsourcing suppliers have

successful outcomes (Willcocks and Griffiths, 2010).

Senior business managers also play IT leadership

roles by serving on committees that approve and priori-

tize new IT investments and by sponsoring IT invest-

ments for their business areas. Other business managers

may serve as business process experts on IT project

teams to select, design, and implement software pack-

ages. All of these business manager roles are critical

because business leaders are the most knowledgeable

about what changes in work processes will be needed to

achieve the greatest business benefits from a new IT solu-

tion. Business managers can also best anticipate what

operational obstacles might be encountered when imple-

menting a new software application and actions that can

be taken to avoid them.