Marketing to CIOs: An Interview with ITSMA’s Chris Koch

We recently sat down with 18, former executive editor of CIO magazine and ITSMA’s new associate director of research and thought leadership, to discuss the four CIO “archetypes” and what these archetypes mean for technology marketers.

ITSMA: While you were at CIO, you wrote about four CIO “archetypes.” Could you tell us about them?

Koch: I should preface this by saying that the archetypes describe four different skill sets that bring value to an organization above and beyond the basic ability to run IT as an efficient utility. An actual CIO won’t be constrained to one archetype but will likely have a combination of the different skills described. The four archetypes are:

• The operational expert. This CIO has the most traditional set of IT skills: making sure the computers and networks are running properly, maintaining and upgrading software, and fulfilling new project requests from the business. These CIOs distinguish themselves by excelling at project management—delivering on time and on budget. However, if their company views IT as strategic, these skills might not be enough. CEOs yearn for CIOs who can go beyond the pure technology operational role and think strategically about the business. That is why, increasingly, you tend to see this type of CIO at companies that do not see IT as strategic or at companies that are smaller and resource constrained.
• The business leader. This CIO is more focused on the business than is the operational expert; he or she possesses a solid knowledge of business processes and strives to use IT to improve these processes to demonstrate real business returns. Indeed, some of these CIOs have taken on additional business operational responsibilities for functions or processes that rely heavily on IT—supply chain, for example. This CIO has good interpersonal skills, interacts frequently with other C-level executives, and may emphasize IT governance as a tool for aligning with the business—forming a cross-functional executive committee, for example, that meets regularly to discuss IT and business issues.
• The turnaround artist. With a deep background in IT operations and consulting, this CIOs top priority is to “turn around a sinking IT ship.” Change management is therefore a top priority: How do you maintain morale when outsourcing, cutting staff, or bringing in a new team? Turnaround artists possess very strong motivational and leadership qualities, and they’re able to give the organization a sense of confidence that its IT transformation will have serious benefits in the long term, even if the measures it must take to get there are painful in the short term. Due to the nature of their mission, these CIOs tend to have short tenures—averaging about three years—at any given company. Aggressive, impatient, and eager to perform their next great feat, these CIOs are easily bored—if you don’t tell them their job is done, they might tell you.
• The innovation agent. This CIO can be found at companies that genuinely love and “get” IT, often smaller companies that are willing to experiment and take risks. Innovation agents are strategic thinkers, planners, and great salespeople who can convince their companies to take a risk on IT. (In fact, these CIOs frequently have sales and marketing experience.) They are less interested in “keeping the lights on,” focusing instead on driving real innovation. The innovation agent tends to focus on customer-facing systems because they have the most direct payback, but because of his or her risk-loving personality, this CIO could promise results that he or she ultimately can’t deliver.

ITSMA: Is one of these archetypes more prevalent than the others?

Koch: Right now, we tend to see a lot of CIOs who fall into the “business leader” category. All CIOs are expected to “keep the lights on,” so pure operational experts aren’t in high demand anymore—at least among companies that view IT as a strategic asset. Turnaround agents are highly prized—their compensation is highest of the archetypes—but they tend not to be in it for the long haul. And most companies today aren’t ready for innovation agents; they still spend between 70% and 95% of their IT budget on “keeping the lights on,” leaving a mere 30% or less for potential innovation. It’s the business leader CIOs who can achieve operational excellence and ensure that the company’s IT strategy aligns with the goals of the business that are most common.

ITSMA: What are the implications of these archetypes for marketers?

Koch: Being aware of the CIO archetypes can help marketers better target their messages. Most marketers today are aware that if they have a product or service that can help companies align IT with business goals, that message resonates with a lot of CIOs. Marketers can also help sales account teams better understand the type of CIO they’re dealing with, which can enable them to identify appropriate offers, talk about those offers in the language that will most appeal to the specific CIO they’re dealing with, and close more deals. For example, marketers could develop a sales tool that maps out how to classify CIOs into the different archetypes based on personal information such as educational background and work experience and on characteristics of the organization at which the CIO is employed, including size, financial performance, and so on.

Another tip for marketers: The cost-cutting mentality that was applied to IT after the dot-com bust has become more or less permanent in most companies. Good CIOs are expected to take money out of their IT operational “utility” (networks, hardware, maintenance, etc.) each year, regardless of the economic situation. The good news is that constantly plummeting hardware and bandwidth costs make that possible; the bad news is that businesses often take those savings out of IT rather than reinvesting them in new or improved IT capabilities. Marketers who can offer solutions that reduce operational costs while adding new capabilities will find a ready market among CIOs, who need help building a business case for innovation.

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ITSMA specializes in helping companies market and sell services and solutions more effectively. We work with the world's leading technology, communications, and professional services providers to generate increased demand, strengthen customer relationships, and improve brand differentiation. ITSMA annual program clients include business leaders such as Avaya, BT, Cisco, Deloitte, Hewlett-Packard, IBM, Microsoft, and Tata Consultancy Services, among others. Our comprehensive research, consulting, and training on topics including ITSMA Account-Based Marketing℠, Brand Positioning, and Solutions Development provide the insight and experience companies need to improve business results. ITSMA is based near Boston, and has offices in London and Tokyo. Learn more at www.itsma.com.