7 Business Concepts You MUST Master to Be an IT Leader

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As technology has become a vital component of companies across all industries, many organizations have added technology professionals to their executive teams. This allows technology leaders to put in extra effort and contribute to broader business strategy and decision making. This requires familiarizing yourself with the core business concepts to understand all the possible ramifications and effectively communicate your views to other leaders and executive members.

So what do CIOs, CTOs, and other technology executives need to know to become full members of the leadership team? This article describes some of the concepts you need to master in order to be an effective IT leader.

Related: Simple guide to entrepreneurial business concepts

1. Key performance indicators (KPIs) of the company

As companies establish new models based on digital technology, IT departments should oversee two categories of digital business KPIs.

The first set assesses the current state of digitalization of the business model, including sales, marketing operations, supply chain, goods and services, and customer service. The second set of KPIs assesses the development and potential of new net revenue streams developed through the exploration of new digital business models and clearly distinguishes them from non-digital sources.

It is one thing to develop key performance indicators, but quite another to discuss them. CIOs need to be able to articulate to their colleagues and boards what these digital KPIs measure and why they are important to the organization.

2. Cash flow

This is the inflow and outflow of cash from a corporation. Cash inflows can come from sales, capital sales, financing and other sources. The influence of cash flow is substantial, immediate and ruthless if mismanaged. The key is to understand how to control, safeguard, manage and invest funds. IT leaders and CIOs need to understand cash flow, as money is the king of any business. If CIOs understand the importance of cash flow, their IT strategies will focus on cash flow.

To manage cash flow, it is necessary to renegotiate all IT-related contracts using a win-win strategy. CIOs should initiate an assessment of how they can manage IT spending without compromising the quality of IT services and business impacts, and should discuss with business leaders how spending can be controlled, especially where IT can help them. help.

3. Corporate culture of the company

The DNA of the company consists of its values, beliefs and how its employees think and act. This is sometimes difficult to articulate, sometimes deliberate and always meaningful on several levels. CIOs must understand the corporate culture of any company, as all IT-related projects and alterations depend on the corporate culture.

Related: The company culture is everything

4. Emotional intelligence

Emotional intelligence is the ability to work and interact with others while managing one’s own emotions. It is commonly used to describe a person’s interactions with a team, potential customers, or clients. People are human beings and should be treated with respect to establish high performance teams.

CIOs and IT leaders need to understand this truth as they interact with IT and business staff. They should always have an emotional understanding of the issues and problems that people face and how ICTs can help solve them.

What processes and hardware require optimization? As a result, if IT / CIO leaders can manage staff with emotional intelligence, they will gain the trust and respect of the business, and IT will become a trusted business partner.

5. Individual incentives

To successfully communicate with your leadership team, you need to understand the incentives. Each team has its own incentives, including social and financial capital rewards. To be a great leader, you need to put yourself in the shoes of every employee and understand their motivations. Customers, potential customers, and board members are the most important stakeholders for technology leaders. Consequently, they must prioritize the incentives that lead to these results.

6. Employee involvement

Creating a strong relationship between the organization and employees is often a human resource goal. A highly engaged employee can be more productive and committed to the vision and goals of the organization.

IT leaders and CIOs must also recognize the need for multifunctional teamwork to deliver IT services more efficiently. They should always connect with HR teams to make sure they can run IT services efficiently, especially when situations like Covid-19 require employees to work often from home. Employee involvement will certainly help the effectiveness of IT teams.

Related: How to Measure and Control Employee Involvement

7. Build an IT governance model that supports the business

Job number one keeps IT staff productive, empowered and committed. Lack of preparation will affect the entire company. CIOs need to form an urgent IT Governance Committee. Government models are useful for providing oversight during typical business operations. If you are having trouble creating the right IT governance model, you may want to consider an experienced and reputable offshore software development company with operations in the United States and other nearby countries.

You should support your staff, ensure their safety, and develop a contingency plan for important responsibilities. Once the initial stage of crisis management and communication is over, it is necessary to establish defined roles and responsibilities within IT to facilitate the organization’s ability to respond quickly.

For technology and executive leaders to be effective in their professions, they need to understand the core business ideas. Always try to determine what business principles you can understand and how to work effectively with your business leaders. If key leaders understand the business, they can successfully help them understand the business difficulties and concerns according to the vision and purpose of the business.

IT leaders will be able to create a long-term IT organizational model that aligns with business plans if they have a solid understanding of business ideas, especially in this age of digital transformation.

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