Anusha Dhasarathy is a partner in McKinseys Chicago office, where Isha Gill is an associate partner and Naufal Khan is a senior partner. Their IT organizations of highly trained experts were perceived as order takers of the business, not as innovators. We have found that a tech transformation must be holistic to deliver full business value. The first unions in the US were focused at the local level representing single crap or trade. CIOs can further develop business acumen by taking responsibility for initiatives that generate business impact, such as building an e-commerce business, or by working with a business-unit leader to launch a digital product and then measure success by business-impact key performance indicators (KPIs), not technology KPIs. Now the product owners are the actual business units, not the IT staff. Eugene Victor Debs Have an integrated plan that highlights risks and dependencies beyond IT. It's all democratically run, so those in decision-making or representative positions are volunteers who've . As always, its a tale of having to do both, notes Bess Healy, senior vice president and CIO at Stamford, Conn.-based financial services company Synchrony. As one large financial institution set out to build its digital products, the business and technology teams jointly led user listening and feedback panels early and often throughout the development process. 29. Because theres a clear understanding of the game-changing power of technology, IT is seen as the digital-first innovation leader as long as it remains focused on shared goals and business outcomes. The potential security risks and integration problems posed by unauthorized, ad hoc technology decisions -- referred to as shadow IT -- highlighted another skill required of effective CIOs. The term chief information officer (CIO) was coined by prominent organizational theorists William Synnott and William Gruber in their 1981 book, Information Resource Management: Opportunities and Strategies for the 1980s. Top CIOs, therefore, develop diverse career paths so that top talent can advance in their own areas of strengthfor example, by letting a top-notch software engineer advance while continuing to code design software rather than forcing her to manage others in order to succeed. The Tipping Point - The Path from CIO to CEO Becomes Clearer. Farm Security Administration/Office of War Information Black-and-White Negatives. The relentless pace of technology innovation and change in recent years has quieted that chatter. While cybersecurity has been a boardroom-level issue for the last few years, the conversation is now broader, expanding to IT and business resiliency, notes Satya Jayadev, vice president and CIO at Skyworks Solutions, a semiconductor manufacturer based in Irvine, Calif. Skyworks is both adopting a defensive posture (i.e., identifying and thwarting attacks) and mapping out an offensive strategy to get systems back up and running in an expedited timeframe. Data processing was centralized and done on IT's timetable. Despite the power and reach of digital powerhouses such as Apple, Amazon and Google and the ability of upstarts like Uber and Airbnb to disrupt entire industries, many legacy companies were slow to embark on a so-called digital transformation journey and make the required technology, business process and cultural changes it called for. Staying razor-focused on business benefits and communicating in a language everyone understands is central to successful IT initiatives, whether the project involves state-of-the-art technology like robotic process automation (RPA) or is a bit more mundane, like upgrading an aging data center. This was the approach taken in a large global retailers digital and technology transformation. Copyright 2007 - 2023, TechTarget The CEO of a B2B technology-services company found this level of insight so important that he asked the CIO to present periodically to the board on technology-led business models. . Effective CIOs acted as technology evangelists who focused on the why of technology, not the nuts and bolts of IT implementations. 1. In the past, IT transformations have often proven expensive, time consuming, and short on value, and this has made some companies leery of undertaking them again. CIO pickets, Georgia, 1941. While finding the right footing has always been a challenge, the need to advance the dual business imperatives on a parallel track was particularly acute this past year, especially after a period of whirlwind digital innovation. Many tech decisions dont get sufficient business scrutiny beyond cost and high-level strategy discussions. What today's labor radicals can learn from the socialists who helped build the CIO in the 1930s. Congress of Industrial Organizations (CIO) proposed by John L. Lewis in 1938, was a federation of unions that organized workers in industrial unions in the United States and Canada from 1935 to 1955. Between 2010 and 2019, the need for digital transformation marked yet another turning point in the role of the CIO and IT, but not without resistance and hardly overnight. A cause of death was not immediately announced. That reluctance was obliterated by the catastrophe nobody saw coming. One way to create that kind of environment is to provide engineers with more autonomy by reducing the number of managers and often-bureaucratic processes, such as time-consuming reports and multiple rounds of approval. Sidney Hillman New York, NY: Anchor Books, 2011.. Ibid, 445.. Goldfield, Michael. Even with this years focus on the fundamentals, LOBs perspective on IT leadership is more in lockstep with the CIOs own take on the role and responsibilities. 1835 General strike for 10-hour day in Philadelphia. We are now digesting innovation and making sure everything works. Next on the agenda: Looking for opportunities to automate key business processes and ramping up security, he adds. U.S. Sen. Bernie Sanders on Wednesday announced plans to have the committee he chairs vote next week on whether to subpoena Starbucks CEO Howard Schultz, who so far has refused to provide testimony about the coffee chain's federal labor law violations. Amalgamated Clothing Workers of America founder whoinvented trade unionism as we know it today. In just 18 months, one CIO at a transportation-and-logistics company radically reshaped its talent profile. In the mainframe era, IT's top professionals were the specialized programmers, systems operators and analysts hired to operate the massive machines that gave the era its name. Esther Eggertsen Peterson Eloquent and effective advocate for the rights of workers, women and . Learn howand get unstoppable. The CIO further built on the relationship with the business by prioritizing initiatives in the tech transformation that addressed business needs and working closely with business leaders to drive progress. The majority of LOB respondents to the 2022 State of the CIO survey (58%) view the top IT executive as a strategic advisor, proactively seeking their help on identifying business needs, making technology recommendations, and helping sort through provider selections while 21% tap IT leadership as a consulting resource. Both the CIO and the AFL grew rapidly during the Great Depression. Increasingly, its become difficult to distinguish who plays what role on cross-functional teams, Jayadev says. The CEO must create an environment where the CIO can thrive. We'll email you when new articles are published on this topic. Something went wrong. They believed the strategic management of information processing by a C-level expert would give the bank a significant competitive advantage. What percentage of the best people you hire are still with you two years later? Throughout the guide, hyperlinks point to related articles that cover the topics being addressed in more depth. Early heads of the IT function came to their positions by being very good at technology -- mainframe data processing, in particular. Recent examples include enlisting machine learning to predict purchase order shortages, leveraging RPAto automate a previously manual past due purchase order review process, and employing chatbots to streamline common helpdesk interactions. Sustained trade union . And then there's 1946, one of the most portentous years for American labor in the twentieth centuryover 14 percent of workers struck in 4,985 work stoppages, which ultimately contributed to the defeat of the Democrats in the midterm elections (particularly left-leaning candidates supported by the CIO). The calls came from the same phone number (929-279-5975 . Endnotes . At large companies, there were data centers to build, networks to protect and critical business applications to maintain. The challenges unions face today result from a combination of trends years in the making as well as recent political developments. On September 10, 1936, the AFL suspended all ten CIO unions (two more had joined in the previous year). Contact. True. Value generation, business transformation and customer centricity are cited as top priorities of the job by the CIOs and industry watchers Pratt interviewed, along with IT concerns such as cybersecurity and implementing emerging technologies. Instead of delivering capabilities that work at an account level with an individual partner, we are looking at how to treat customers across multiple partners and thinking about the everyday digital experience across a suite of products, Healy explains. Please try again later. False. "If you look at the CIO role today, it is all about relationships, culture, application development and innovation.". The United Mine Workers of America (UMW or UMWA) is a North American labor union best known for representing coal miners. Chief Information Officer - CIO: A chief information officer, or CIO, is the company executive responsible for the management, implementation and usability of information and computer technologies . Creating powerful customer experiences, for example, requires a data architecture to track and make sense of customer behavior. Ibid., 15-16.. Get started by entering your email address below. preparing for next-generation technology services; using the cloud for core business applications; building a digital collaboration culture; and. 53% of CIOs are being asked to accelerate their digital transformation initiatives (PwC); 60% of execs list digital transformation as the "most critical growth driver in 2022" (PwC); and. They approach planning as a dynamic process rather than something static, which allows transformation teams to better remove roadblocks and to allocate people and spend when and where they are needed. Samuel Gompers Whether or not the union is affiliated with the American Federation of Labor and Congress of Industrial Organizations (AFL-CIO) was also provided as supplemental data. Top-quartile IT organizations are more likely to have an integrated or fully digital operating model, according to McKinseys 2018 IT strategy survey. Mobile computing also accelerated the development of a slew of new technologies that would become part of the CIO's purview, including IoT, 5G networks and a new IT architecture known as edge computing. Employers often fight unionizing efforts with aggression and intimidation, using legal and illegal tactics. Can I clearly articulate the businesss goals? In other words, the potential po. became a recurring theme, as the pundit class debated whether the CIO should be replaced by another IT expert like the chief data officer or chief digital officer -- or if, in fact, a business executive should become the enterprise's next czar of technology. Without that, unions cannot build the breadth and commitment necessary to address their powerful adversaries. Shortly after the AFLs convention in Atlantic City in 1935, John L. Lewis called together the leaders of the International Typographical Union, the Amalgamated Clothing Workers of America, the ILGWU, the United Textile Workers, the Mine, Mill and Smelter Workers Union, the Oil Workers Union and the Hatters, Cap and Millinery Workers to discuss the formation of a new group within the AFL to carry on the fight for industrial organizing. He was 72. CIOs do this by continually reviewing customer-satisfaction reports, regularly monitoring customer-care calls, and participating in user forums to hear direct feedback. Nearly three-quarters of responding CIOs (74%) are confident that the heightened visibility of the CIO role, sparked by their pandemic efforts, will persist. Even when it comes to the impact on digital transformation, LOB respondents were more apt to acknowledge CIOs this year compared to prior-year surveys. Building trusted relationships with the C-suite, line-of-business leaders and even the board of directors became a vital part of the job. CIOs need to move quickly. We cant take our eye off the ball or lose an opportunity to seize on the acceleration we are driving every day with our digital-first experiences and modernization.. Next came a succession of CIOs to be promoted to the CEO role, or to gain the position by founding their own companies. Theres no worse time than now to be an average CIO. These words, uttered by an executive at a recent conference, neatly capture the intense pressure on CIOs. This reality requires a CIO to first come to terms with the scope of the transformation itself. Architecting modular platforms needs revamped approaches to hiring in order to get top-flight engineers. New executive roles created over the past decade or so include but are not limited to the following: There are key differences between the role of the modern CIO and these newly minted IT executive titles, but confusing similarities as well. Sequoia and WM are in good stead. There Is Power in a Union: The Epic Story of Labor in America. The Early YearsTexas' first labor unions organized just few years after the arrival of the Anglo pioneers. Cookie Preferences Privacy Policy We have found, for example, that the best CIOs go far beyond meeting with the C-suite or attending strategy meetings. 66% of CIOs said their relationship with the, 70% of CIOs said they were assigned leadership of high-impact initiatives; and, 80% of CIOs reported an increase in educating business leaders about technology. Figure 13.1: Union membership as a percentage of total employment, 1930-2015. Lane Kirkland ", The job is not about technology transformation per se but about how to "create and lead a movement across the organization -- about how you find your coalitions of the willing," Corbin said. In comparison, in the 2021 State of the CIO survey, only 62% of LOB respondents viewed the CIO role through a digital and innovation lens and only 59% thought CIOs shouldered more of the digital transformation agenda compared to other top-level executives. Striking workers block a railroad into the Celanese plant in Maryland on November 16, 1936. But there was little evidence of unionism for another generation - until . As of 2018, union density stands at 10.7 percent overall (Bureau of Labor Statistics 2018).Union decline has contributed to growing economic inequality and eroded workers' voice in politics (Farber et al. Concerns that CIOs may shed a bit of their pandemic luster should be put to rest by the 2022 State of the CIO findings. For Anita Klopfenstein, a culture built on service, accountability, and innovation is key in delivering business value from difficult IT journeys. "CIOs helped save many enterprises during the COVID-19 lockdown. CIOs remain the go-to resource for navigating technology decisionsmore than half (52%) of IT leaders surveyed this year categorized CIOs as a strategic advisor who proactively identifies business opportunities and makes recommendations while 26% viewed the CIO as a consultant, providing advice and guidance on technology selection. While mainframe use continued, the period from the 1970s to the 1990s marked the use of minicomputers and the advent of PCs. AFL-CIO, in full American Federation of Labor-Congress of Industrial Organizations, American federation of autonomous labour unions formed in 1955 by the merger of the AFL (founded 1886), which originally organized workers in craft unions, and the CIO (founded 1935), which organized workers by industries. The head of technology and analytics at a large retail organization set up a talent war room to hire data scientists and engineers. Beth Stackpole is a veteran reporter who has covered the intersection of business and technology issues for more than 20 years. Adapted from Wikipedia and other sources. Let's break down this period of rapid and extreme change. In the 1940s, 10 percent of public workers and 34 percent of those in the private sector belonged to unions. how receptive the business leadership was to embarking on a digital transformation journey. Our guide to the CIO's place in the modern enterprise takes stock of this multifaceted role, including its history, its relation to other IT executive positions in the C-suite, its chief challenges and its future prospects. The biggest change in the role of the CIO, he said, is that the top IT executive is now the company's "transformer in chief. 03:28. Philip Murray That leads promising developments to stall out or underdeliver. 1847 New Hampshire enacts first state 10-hour-day law. There are over a dozen unions represented by the Actors Equity Association, Utility Workers Union of America, and others. "The working people of . Answer (1 of 3): I will answer this in relation to the situation in the USA. When the Texas Typographical Association was founded in April, 1838, it invited all printers in the Republic of Texas to join. For the remainder of the twentieth century, the AFL-CIO remained the largest union organization in the United States. Social reformer dedicated to workers' rights and racial justice. Without a high-level understanding of complex and potentially game-changing technologies, such as blockchain and AI, "you won't have the insights into the opportunities that the technology provides," he said. At Synchrony, theres a continued push for modernization and an up-leveling of its cybersecurity posture, but not at the expense of its digital-first roadmap, which is all about transforming the customer experience across channels. Nearly half of respondents to McKinseys 2018 IT strategy survey cite skill gaps on traditional teams as the top obstacle to a successful digital transformation. LOB respondents, who oftentimes are at odds with the CIO perspective of the role, were also firmly in that camp: More than three quarters (78%) expect CIOs elevated status to continue regardless of cyclical shifts in IT focus. Unlike years past, he believes the CIO is well situated to weather a back-to-basics IT deployment cycle without undermining status or ceding any leadership ground. Findings from our 2018 IT strategy survey reveal that companies with top IT organizations are much more likely than others to have the CIO very involved with shaping the business strategy and agenda, and strong performance on core IT tasks enables faster progress against a companys digital goals. Success increasingly depends on the widget being Wi-Fi-enabled. Data was not just the province of the few but currency for the many, as the adoption of PCs put powerful technology in the hands of employees. The digital CIO has arrived, MIT Sloan CIO Symposium, 2016. Moreover, CIOs are increasingly seen as a changemaker, taking the lead on business and technology initiativesa view shared by the lions share of CIOs (84%) and LOB (75%) respondents. The eight union chiefs who founded the CIO were not happy with how the AFL was unwilling to work with America's manufacturing combines. Whether Lewis always intended to split the AFL over this issue is debatable, but at the outset, the CIO presented itself as only a group of unions within the AFL gathered to support industrial unionism, rather than to oppose the AFL itself. The CIO transformed American labor and American politics. The digital CIO has arrived, MIT Sloan CIO Symposium, 2016. Eight-five percent of IT leaders surveyed this year devoted time to transformational responsibilities, including modernizing infrastructure and applications (40%), aligning IT initiatives with business goals (38%), and cultivating the IT/business partnership (30%). This opened the door for some CIOs and their IT departments to become more deeply involved in business strategy. Seventy-nine percent of LOB respondents recognize the CIOs role as more digital and innovation focused while 78% agree that the CIO plays an outsized role in leading digital transformationfar more than any of its executive counterparts. In our experience, its been helpful to think about it along three vectors: For IT to become a driver of value, the transformative CIO also needs a new set of skills and capabilities that embody a more expansive role. The natural cycle swings leave IT leaders grappling with how to strike the right balance between business innovation and operational excellencea major issue for three quarters (76%) of respondents to this years survey. This detailed early planning revealed which systems needed to be upgraded and when. It involves the integration of digital technologies into an organization's products, processes, partnerships and strategies. Now, fresh off a pandemic-fueled cycle of accelerated innovation, Holcombe is channeling his vaunted sales skills to drive an upcoming IT agenda centered on foundational areas like optimization, security, and enterprise resiliency. Moving forward, there are efforts to improve workspace management and the employee experience thanks to the infrastructure investment, which resulted in savings now funneled to continuous improvement. These were supplemented by other programs, including in-person training, top management immersion sessions, and the cultivation of an in-house expert network that people could tap on specific topics. establish a strategic role for the technology function, elevate the CIO to report directly to the CEO, rebalance technology investments and track their business value, prioritize the development of a world-class tech workforce. While still pursuing innovation on a parallel track to support remote work and to improve customer, supplier, and employee engagement, companies across sectors are in the midst of a governance cycle to ensure the wave of pandemic-era digital investments are fully optimized and delivering value for the business. By the 1990s, the IT department's top leader had transitioned from being just a data-processing expert to an executive-level arbiter of a company's hardware, software and data management. As part of a digital transformation, for instance, the CIO at a large financial institution committed to developing digital products to help the business scale its presence in a new market. The AFL-CIO Split and the Fight for Workers Power. Unions and Benefits. Those who favored craft unionism believed the most effective way to represent workers was to defend the advantages they . The stage is set for CIOs both to lead a successful technology transformation and to influence business strategy. Are your top engineers happy with their work? Lewis continued to denounce the AFLs policies, while the CIO offered organizing support to workers in the rubber industry who went on strike in 1936 and formed the Steel Workers Organizing Committee (SWOC), in defiance of all of the craft divisions that the AFL had required in past organizing efforts. Although its main focus has always been on workers and their rights, the UMW of today also advocates for better roads, schools . Union membership in the United States has shown a steady decline as a proportion of the total labor force (i.e., comprising all employed persons 16 years of age or older). The sitdown strike helped the CIO to obtain union membership in the 1930s, although it was soon outlawed by the Supreme Court. As more companies strive to improve operations and enhance the customer experience, CIOs lead the charge to implement automation initiatives that work now, and strategies to ensure future success. 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