The experts (and the marketing guys) tell us that we should be able to succinctly describe what our businesses do in the time it takes to complete a short elevator ride. The patience and attention span of those we meet is short and you never know the opportunity presented by whom you could be riding with.

Similarly, many advise that we should be able to clearly define and convey our role within the organizations that employ us with pithy descriptions. While many in executive ranks wear many hats, people have some understanding of CEO and can even relate to CFO or VP of Sales. But, what is a chief information officer?

In my role as CIO, this is frequently my challenge. Concisely explaining my primary responsibilities in social settings and even sometimes in business settings is nearly impossible. And this is not just my problem. Colleagues frequently tend to simplify introductions by saying that I am manager of information technology for our business. Compounding this question is the confusion of technology titles and differentiation of roles. What is a CIO and what is a CTO (especially in a non-technology business), Director or VP of Technology, or even that ubiquitous manager of IT?

I do not have a magic answer. Instead, I have a theory. Any title bestowed upon an executive relating to technology empowers and conveys commitment to be the technology superhero of an organization. Let me explain with some background.
 
Corporate IT leadership has always been very confusing. Outside of business, much quantifiable convenience and entertainment progress has been made. What about in business? After each initiative or fad the question is always, has progress been made or has it been one step forward and then one or two steps back?

Early in the 1990s, I used to quote Jim Manzi, formerly of Lotus Corporation, who lamented the billions that were spent during the 1980s on information technology with little improvement in productivity. The late 1990s showed that productivity gains eventually came. Now we are learning many things about IT investments from the last decade. Some recent reading shows that we should be puzzled about our direction.

1. A Morgan Stanley study (and accompanying front page story in USA Today) about the $130 billion wasted in the past two years on "unneeded software and other technology." Gartner estimates that "worldwide, companies waste as much as 20% of the $2.7 billion spent on tech."
 
2. A CIO Magazine feature story that indicated only 10% of CIOs say that technical proficiency is an important skill to success. Communication skills (70%), understanding business (58%), and strategic planning (46%) are the big ones. (Comment: This may explain the Morgan Stanley study.)

3. According to a recent Business Week article, "the amount of IT equipment (not including communications equipment) per worker, measured using historical costs, continued to rise in 2001." "Business spending on software has doubled as a share of GDP, from 0.9% in 1991 to 1.8% today, barely off its 2000 high."

4. A recent Information Week survey of CEOs, CFOs, and CIOs showed that 75% of respondents "said they consider intangible returns on technology investments at least as important as hard ROI numbers."

5. A recent Optimize Research study asked, "What is the role of IT at your company?" While the overwhelming responses among the multiple responses allowed were positive, 20% said "cost center and drain on corporate resources" and nearly 30% said "primarily responsible for technology maintenance."

So what must a technology superhero be accountable for or oversee in today’s corporate environment?

1. Provide input and feedback in the overall business strategy and budgeting process, not only IT.

2. Help set budget priorities among the IT spending.

3. Manage and safeguard key data, communications, hardware and software.

4. Help improve process efficiency and reduce cost using technology.

5. Be an active part of an executive team with a mission of profitability and productivity.

The panic started at Enron and having far reaching marketplace effects is over corporate governance at the largest companies. This is more than about compensation; it is about executive competence. Technology is subject to the same missteps, regardless of the titles bestowed that are often faddish, confusing, and even misguiding. Still, each of our companies should have that technology champion -- a person committed to a fiduciary responsibility of leveraging information and IT to continued and improved business success.

CHAIM YUDKOWSKY, CPA, is president of Byte of Success Inc., a technology consulting company specializing in helping small and mid-size business grow. In addition, he is chief information officer of Textilease Corp., a Beltsville, Md.-based uniform and first-aid services company with a focus on the Southeast. His Byte of Success column explores the world of techology for accountants and finance professionals.

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