The CIO Report

Art Langer

Guest Contributor

In my experience, many CIOs think their boards of directors want them to focus on costs and budgets. If they want a better understanding of board expectations, they should take some guidance from Virginia Gambale, who has long experience on both sides of the fence.

What directors really value in a CIO is sound strategic thinking and a great ability to execute, says Gambale, a former CIO at Merrill Lynch, Bankers Trust, and Alex Brown, and former partner at Deutsche Bank Capital. Gambale is now the managing partner of Azimuth Partners and a board member at JetBlue and Rev Worldwide, a financial services company that addresses underserved markets.

Gambale said boards expect the CIO to provide guidance on how technology can improve the firm’s growth and market strength, help the company  better reach customers and develop innovations that boost market share.

CIOs should practice “using the language of the board,” she said.

CIOs must talk about things like asset allocation, distribution channels, not technology itself. “Encase yourself in corporate strategy,” she says. “Stay away from talking about the plumbing, and no technical jargon, for sure.”

I asked Gambale how a CIO can best learn the language of the board. She urges CIOs to create close business relationships with their CFO, head of corporate strategy, and product development executives so they can understand the operating model of the company and clearly grasp what drives profitability. For example, at JetBlue, profitability is heavily dependent on the costs of fuel, labor, and airplanes.

Another important piece of advice: Think like a board member. What are they seeking? What is important to the members?

To understand what the board wants, you must have conversations with them—not just at the meeting, but before. Jim Noble, now CIO of Talisman Energy, explained his strategy with the board when he was CIO of Altria, the tobacco company. He always looked to improve his relationships with the board either via special meetings and phone conversations, in addition to being at board events. He often knew the relevant issues; at Altria, the paramount issue was shareholder value.

One thing seems to be certain—CIOs are needed more and more at the board level. The value they bring as a driver of value is apparent; the question will be whether the CIO is ready to step up and provide it.

Dr. Arthur Langer sits on three faculties at Columbia University and oversees executive masters programs in IT management. He is also founder and chairman of Workforce Opportunity Services, a nonprofit that helps companies build stronger talent pipelines by training underserved young adults and military veterans