In a December 2008 survey of C-level executives titled IT’s unmet potential: McKinsey Global Survey Results (free registration required), McKinsey Global Institute documents the discrepancy between the desired and actual business results of IT. It also demonstrates some differences between the expectations among IT and non-IT executives. Of particular interest:
- Nearly two-thirds of executives believe their organizations are at risk of information or technology-related disruptions, and less than half believe they are prepared to manage these disruptions. Concern is greater among IT executives.
- IT efforts are concentrated on improving the efficiency of business processes, but there exists stronger desire to improve the effectiveness of these processes. An even stronger gap exists between the ability and desire for IT to help create new products or services.
- An even stronger discrepancy exists in the alignment of IT and business strategies. Whereas 67 percent of C-level executives desire strong alignment (“Business and IT strategy tightly integrated, inﬂuence each other”) only 22 percent said they actually are. Twice as many organizations said their corporate strategies are developed first.
The discrepancies between IT and non-IT executive responses were even more interesting:
- IT managers were more likely to emphasize improving the talent of their IT staff (57 percent) than their non-IT counterparts (42 percent).
- IT managers want to consolidate IT functions to a centralized IT (21 percent) than their non-IT counterparts (14 percent).
- IT managers are more concerned about reallocating budgets to focus on value drivers and improving IT governance and oversight.
- On the other hand, non-IT managers were more interested in outsourcing IT functions (22 percent) than were IT managers (18 percent).
- Whereas more managers expect to reduce IT operating costs in 2009 versus increase them (43 percent versus 23 percent), the numbers are almost perfectly inverted when they look at new IT investments (26 percent versus 41 percent).
The final point suggests 2009 may become a turnaround year for IT executives, in which IT is able to influence organizational strategy in order to capitalize on strengthening their positions during this global recession. This final point is important: change begets opportunity, and those organizations who strengthen their positions during the downturn will benefit during the next recovery. Often the ability to seize the opportunities is inversely related to debt carried, so look for cash-strong companies to become stronger.
By the way, the outlook for IT project managers also remains relatively strong.