A recent study by Gartner highlighted the five biggest challenges that CIOs face today, with one of the most pressing being the need to demonstrate IT’s value to the organization. According to Gartner:
“Eighty-one percent of boards have not made progress toward or achieved their digital business transformation goals. These underwhelming results leave many CIOs struggling to justify technology investments, even as more demands for technology — including artificial intelligence — increase across the business. In short, many CIOs have greater responsibility for but less direct control over technology spend.”
For CIOs, the journey to demonstrating IT’s value starts with the IT planning process. The key question: What do stakeholders truly value? Aligning the IT investment portfolio to this definition of value is essential.
The Pitfalls of Over-Reliance on Corporate Objectives
Many organizations attempt to translate corporate objectives directly into an IT strategy. While well-intentioned, this approach often falls short when prioritizing investments. Here’s why:
Corporate objectives are not all-encompassing: Only a handful of technology initiatives may directly align with corporate goals. However, IT’s role extends far beyond this—it involves maintaining business operations, continuing investments in strategic areas that yield competitive parity or advantage, and driving innovation. Solely focusing on corporate objectives can lead to an inconsistent and unstructured planning process once key initiatives are funded. Moreover, in some cases, IT may have little or no role in supporting certain corporate goals.
IT needs a long-term vision: IT strategy shouldn’t be confined to a single fiscal year’s corporate goals. Major technology investments require a long-term roadmap—spanning three, five, or even more years—following a continuous cycle of Launch, Learn, Pivot.
Agility is key: An effective IT plan must remain flexible to accommodate emerging business needs. Strictly adhering to corporate objectives can stifle the adaptability required to navigate unforeseen challenges or capitalize on new opportunities.
IT as an innovation engine: The expectations for IT to drive innovation and competitive differentiation have never been higher. However, corporate objectives often focus on incremental improvements rather than breakthrough innovations. Simply chasing corporate goals won’t position IT as the strategic force it needs to be.
The Solution: Value-Based Planning
CIOs must embrace value-based planning—a structured approach that prioritizes and funds technology initiatives based on their impact across corporate objectives, business operations, strategic imperatives, and innovation.
By shifting to a value-based planning model, IT leaders can:
Ensure investments are aligned with business priorities beyond just corporate goals
Strike a balance between long-term vision and short-term adaptability
Strengthen IT’s role as a driver of enterprise success
The CIO’s challenge isn’t just about proving IT’s worth—it’s about ensuring that technology investments drive meaningful business outcomes. Value-based planning offers the framework to do just that.
