IT is too serious to be managed by CIO - in particular regarding its budget
Yes!
...but consequence is that IT is not managed or let us say poorly managed in many companies.
In too many cases, IT is on the agenda of the CEO only on 2 occasions :when something goes wrong operationaly and some manager complains, or once a year at budget time.
For this one chance, instead of discussing strategy and value like for any action in business, IT is being discussed via the budget (eg cost) aspect.
...and budget, in a big corporate firm, means, endless excel sheets consolidated by many mid level managers, PMOs...Budget is a object of battles beween departments managers (the CIO being one of them) where in the end of a tiring process, the CEO tries in a short time frame to cut budgets where it hurt less. No discussion regarding overall IS value or comparison with budgets going into other departments takes place. No assessment of overall value of IS projects or maintenance budget takes place. Probably maintenance budget 'value' is not even assessed since it is considered 'baseline' together with infrastructure cost.
So we end up with both an iceberg syndrom (see schema), frustration from many IS stakeholders, and overall under optimal resource allocation and less value for the shareholder's money.
Yes!
...but consequence is that IT is not managed or let us say poorly managed in many companies.
In too many cases, IT is on the agenda of the CEO only on 2 occasions :when something goes wrong operationaly and some manager complains, or once a year at budget time.
For this one chance, instead of discussing strategy and value like for any action in business, IT is being discussed via the budget (eg cost) aspect.
...and budget, in a big corporate firm, means, endless excel sheets consolidated by many mid level managers, PMOs...Budget is a object of battles beween departments managers (the CIO being one of them) where in the end of a tiring process, the CEO tries in a short time frame to cut budgets where it hurt less. No discussion regarding overall IS value or comparison with budgets going into other departments takes place. No assessment of overall value of IS projects or maintenance budget takes place. Probably maintenance budget 'value' is not even assessed since it is considered 'baseline' together with infrastructure cost.
So we end up with both an iceberg syndrom (see schema), frustration from many IS stakeholders, and overall under optimal resource allocation and less value for the shareholder's money.
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