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4/9/2014
11:30 AM
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IT, Business Exec Gulf Widens, McKinsey Says

Just as more businesses recognize IT's strategic importance, dissatisfaction with IT's effectiveness is growing, McKinsey research shows.
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Laurianne
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Laurianne,
User Rank: Author
4/10/2014 | 1:39:21 PM
Re: CIOs and their troops
Very few CIOs stay put for 8 years. Many are out after 3 years.
MyW0r1d
50%
50%
MyW0r1d,
User Rank: Strategist
4/10/2014 | 11:54:53 AM
Re: CIOs and their troops
I knew one CIO that received his position after spending a few years recruiting IT resources for a major personnel placement firm.  He was convinced that and an MBA fully qualified him to run an enterprise IT group.  Among his strategic gems, "You can't manage who you can't see."  That brought globalization and asperations for anything not SMB size to a screeching halt even though the company was already a multinational.  All proposals reflected this limited vision.  Keeping up with a market as diverse as IT (software, hardware, infrastructure or development) requires an increasingly large, mountain of effort.  Show me an IT executive (but any CXO could fit)  that has spent over 8 years in place and I will show you a firm that has become stagnant, but the fact 28% would be that honest about themselves is surprising. 
Lorna Garey
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Lorna Garey,
User Rank: Author
4/9/2014 | 5:16:04 PM
Re: McKinsey dichotomy
When we do similar surveys we sometimes parsed the data by IT pro and business respondents. The differences in perception are usually stark. But, this year's budget survey shows the situation isn't so bad. The percentage reporting business units with tech budgets outside IT's purview was down seven points from 2013, and overall tech spending edged up slightly.
Charlie Babcock
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50%
Charlie Babcock,
User Rank: Author
4/9/2014 | 4:01:06 PM
McKinsey dichotomy
Let's see, 61% of business execs say "their organizations use IT to improve business effectiveness," an increase of 12%. At the same business execs were "less likely this year to say that IT performs effectively in sharing knowledge, delivering year-over-year productivity gains, tracking customer-or segment-level profitability, creating new products, and entering new markets, according to McKinsey." The first stat probably has to do with legacy systems, while the latter reflects what the business wants from new applications. Anyone seen this dichotomy before, satisfaction with IT coupled to dissatisfaction?
TerryB
50%
50%
TerryB,
User Rank: Ninja
4/9/2014 | 2:12:28 PM
Pot calling kettle black
They should have same survey about McKinsey instead of IT, love to see those scores. Could I tell you some stories about them....
Shane M. O'Neill
50%
50%
Shane M. O'Neill,
User Rank: Author
4/9/2014 | 1:11:13 PM
Re: Positive Signs
Though these numbers are disappointing, it's worth noting that business execs still WANT IT to be a strategic partner and will invest in IT's ability to enable productivity and innovation. But the noted dissatisfaction with IT's efficiency indicates there are serious growing pains in getting to this strategic partnership.
 
RobPreston
50%
50%
RobPreston,
User Rank: Author
4/9/2014 | 12:41:49 PM
Positive Signs
One positive sign: Management is less interested in using IT to cut costs and more interested in using it to expand their businesses and move into new sectors. We're finally emerging from the shadow of recession. This isn't to say, however, that IT budgets are rising across the board. The clarion call is to shift IT spending buckets, from infrastructure and ongoing support to new applications and innovation. 
Laurianne
50%
50%
Laurianne,
User Rank: Author
4/9/2014 | 12:40:34 PM
CIOs and their troops
"28% of IT execs said new management would boost effectiveness." This seems to point to CIOs losing cred with their lieutenants and other rising IT leaders, for inability to keep pace with change. Does that figure surprise you, readers, or ring true with your organization's current mood?
Research: 2014 US IT Salary Survey
Research: 2014 US IT Salary Survey
Our survey of nearly 12,000 respondents shows IT pays well -- staffers rack up a median total compensation of $92,000, and managers hit $120,000. Industry matters. And the gender pay gap is real and getting wider.
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