There are two primary IT leadership roles in an organization, the IT Director and the Chief Information Officer (CIO).  Many growing companies do not recognize the difference and likely are not benefiting from the value that a CIO can bring to their business.  Some companies combine the two but the roles are different.  If your business is of significant size and planning to grow, you need both.

Understanding the roles of the IT Director and the CIO

The IT Director is the head of the IT department where their primary role is to oversee the daily tasks and operations.  Under the guidance of the CIO, the IT Director maintains adherence to company standard operating procedures (SOPs) and defined support processes.  In other words, the IT Director is responsible for keeping systems up and running according to the company’s needs.

Examples of an IT Director’s responsibilities include oversight of support services, staff management, IT asset lifecycle management and likely some project management.

The CIO, while likely capable of accomplishing the tasks associated with the IT Director, is responsible for the strategic technology planning for the organization.  The CIO typically reports to the CEO.  The CIO develops and improves strategic planning, process, and procedure related to the organization’s technology.  The CIO also participates in new technology initiatives and evaluates their impact on the business.

Examples of a CIO’s objectives may include increasing automation, improving data security and control, as well as monitoring pertinent industry technology trends.

Leadership contributions of the IT Director and the CIO

The role of the CIO and the IT Director are similar in that both are involved in technology leadership for the organization.  There is also a significant difference between the strategic and tactical value that they each bring to the leadership team.   For example, the IT Director may report on problematic technology or support challenge specifics.  The CIO will communicate the company’s current and future technology situation in such a way that the executive team can understand.  The CIO can evaluate and explain the causes behind the technology challenges described by the IT Director and what corrective options are available.

The value of a CIO

The CIO possesses a variety of responsibilities including budgeting, security, audits, disaster planning, and strategic planning.  The CIO acts as a trusted advisor to the executive leadership team and participates as key decisions are being considered.

The largest contribution of the CIO is usually around strategic planning and oversight of new technology initiatives.  Careful analysis of company needs, efficiency gains and return on technology investment enable the CIO to provide appropriate direction for the company.

A highly regarded CIO has the industry experience and knowledge needed to benchmark against other companies in the same industry and highlight areas for potential improvements.

Many businesses cannot afford and may not require the full-time services of a CIO.  However, executives may need and desire the forward-looking skills that an IT professional can offer.  A fractional, virtual, or outsourced CIO can often provide the guidance needed for the company at a fraction of the cost.  In as little as a few hours per week, a fractional CIO can become a trusted advisor to the CEO, offering key business technology advice needed to control the direction of the organization.