How can CIOs demonstrate the value of the IT department?

Will Astbury
by Will Astbury 12 May 2017

Most organisations recognise that they need an IT department to fix glitches, switch the internet connection on and off, and plug-in the monitors.

Okay – Most stakeholders recognise that IT do more than that, but many don’t realise just how much value their IT team actually delivers.

It’s the CIOs job to demonstrate the return on investment (ROI) delivered by IT projects, both financially and operationally. However, this isn’t an easy task.

In this article, Crimson’s IT solutions consultants outline five actions that IT Leaders can use to demonstrate the value of their department to the rest of their organisation.

  1. Communicate Metrics: In his article for CIO WaterCooler, Transport Systems Catapult IT Director Alex Carr wrote that “capturing the right data and communicating it in the right way” across the business is vital. He recommended tailoring the metrics to each specific audience so they are understandable and useful.
  2. Optimise: Get involved with department heads and seek ideas for improvements to their products / services and the way they operate. Then ensure that the IT team play an active role in developing and implementing solutions. This process will ensure that each department is satisfied that the IT team is helping them to achieve their objectives and will increase business acumen and understanding amongst the techies.
  3. Audit Spending: Use value engineering techniques on the IT value chain to lower costs where possible. Always be looking for opportunities for commonality and trim excessive processes and expenses. Review your costs / ROI quarterly and communicate the results across the business.
  4. Simplify: Technical specifications and jargon can be a huge barrier. When asked to demonstrate IT’s value, align every project and cost to the organisation’s corporate strategy and measure every project with business-focused KPIs.
  5. Make Others Quantify Value: a Tech Target article recommended that CIOs require business units to predict financial benefits and establish measuring metrics when requesting an IT project. This will help stakeholders to understand the value of the IT project and provide transparency for financial targets.

In conclusion, CIOs must be great communicators and collaborators if they want their IT teams’ successes to be noticed and appreciated. Are you a communicative IT leader? If so, we want to hear from you – click here to submit your CV via our website.

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Crimson is an IT consultancy, an IT solutions provider, an IT recruitment agency, and a Microsoft Gold Partner operating across the UK.

Topics: CIO