A recent rail journey provided me (and nine CIOs) with a simple reminder of the value of touching base with the “business end” of our IT Projects – where the talent delivers and the magic happens!
I’d ended up sat opposite a gentleman who was part of the management team of the train company, a Director no less. I smiled and thought to myself, “This will mean excellent service! They’ll want to impress the C-suite!!”
To be fair, it was an LNER train, I am always impressed, the customer service is exceptional, it feels like it’s baked into their culture.
As the train pulled into the next station, the chap closed his laptop and rose to his feet. I smiled the smile you reserve for someone you’ve shared a table on a train with but have not spoken a word to. He smiled back and then walked down the corridor, leaving his rucksack in the overhead rack and his laptop on the table.
I gazed out the window, who doesn’t love people watching at a station? Our man was now standing out on the platform – a director of the train company was welcoming passengers on board!
Apparently, this wasn’t a one-man act of kindness or a gesture of “going-the-extra-mile” – it is a company policy. Directors on LNER trains join colleagues at the door at stations.
How brilliant?
What a great first impression for customers to be greeted by a director, a boost for employee morale (it was clear how pleased the on-train crew were to see this chap and how easy their interactions were) and text-book leadership by example … but also … what a brilliant way to get an insight into how things are at the sharp end of the business!
I mentioned this to a few CIOs, interested to discover how often the C-suite in our game “stand at the door” of their projects – and what they learn doing so. Nine CIOs either did this, or said they’d give it a go … and a number of trends emerged:
1 – THE TALENT GAP … IS STILL GAPING! *
Talent gaps and shortages of key IT project skills do not appear to be improving, in fact it’s a textbook case of “plus ça change” – the more things change, the more they stay the same!
Increased demand for IT Project talent, driven by ever increasing digitisation strategies (every project is an IT Project now), is giving all the CIOs I checked in with resourcing headaches.
Of course, it’s not a new problem. A decade ago, The KPMG CIO SURVEY revealed that 34% of CIOs had an IT Project Management talent gap, this had dipped to 25% in 2018, and we had hoped this trend would continue into the 2020s. A range of factors then tipped the trend on its head, from IR35 making talent reconsider their career paths to the pandemic forcing business operations online – disruption and changing demand have made talent shortages harder to mitigate.
Remember Stoneseed’s Project Management as a Service (PMaaS) is a great way to access project talent when you need them!
2 – AI DATA QUALITY *
Five out of the nine CIOs told me that they’d identified AI-generated data quality issues. Decisions had been taken by the project team “based on flawed AI data”, or AI had “mapped a pathway that was at odds with original, unique business case” and in one case, where AI deployment was driven by an “over-excited CEO”, an exasperated CIO wrote, “Premature implementation of AI has increased demands on our IT platforms, especially data governance, trust, reliability, and security.”
I remember shuddering reading these words from Gartner in 2024: “Artificial intelligence has CEOs’ attention — MSE CEOs are very intrigued by the possibilities of AI in their growth plans.” (Leadership Vision for 2024: Midsize Enterprise CIO).
CIOs and IT Project leaders must have a handle on AI, keep up-to-date with opportunities and mindful of possible negative business impact of rushing to AI too soon or inadvisably. It is our responsibility to manage the expectations and ambitions of “intrigued” and “over-excited” CEOs.
3 – PMO NO LONGER FIT-FOR-PURPOSE
Two of the nine had recently concluded that their business needs had outgrown their Project Management Office – one saying the arrangements made upon formation of the PMO were now “not rigid and robust enough, lacking governance and formality” and the other “not flexible enough, too restrictive”.
That’s the thing about a PMO isn’t it? There’s no such thing as a one-size fits all and that can often mean that one-size (that did fit) won’t fit forever and meet every evolving need. It’s like having a dress or a suit made for a wedding in June and expecting it to still fit after the excesses of Christmas, and not look out of place, at a job interview in January.
Interestingly, a third CIO mentioned that they did not have a formal PMO at all, they used standard approaches, and industry-standard frameworks, methodologies, tools and templates, but it wasn’t a “formal department”. The PMO might not even be called a PMO in your organisation too!
Remember Stoneseed’s PMO Services (PMOaaS) is a great way to access PMO advice and resources.
4 – ECONOMIC CHALLENGES DIMMING GREEN LIGHTS *
All nine CIOs told me that “economic challenges” and “the current business climate” were adding further pressure on the justification of IT budgets.
As businesses are becoming increasingly reliant on technology, CIOs and their organisations are navigating financial uncertainties, making it paradoxically more difficult to secure the funding for the needed IT initiatives!! CIOs are having to focus more than ever on presentation of clear, data-driven justifications for technology investments. The need for careful prioritisation and cost optimisation has never been greater, as organisations must balance innovation with financial prudence.
To ensure the IT Project green lights that business needs, CIOs must adopt a structured and strategic approach to IT budgeting, aligning technology investments with business objectives, demonstrating measurable returns, and ensuring cost efficiency. “Financial models, forecasting tools, value-driven metrics – I see them in my sleep now!” one of the CIOs told me. Placing attention here can strengthen a case for IT spending.
“More open dialogue with business stakeholders and financial leaders” helps create a shared understanding of technology’s role in driving growth and resilience, making budget approvals more justifiable – even in these uncertain economic conditions.
5 – GREATER NEED FOR A MORE STRATEGIC APPROACH *
I’d consider each of the nine CIOs ‘strategic masters’ – each are brilliant at simultaneously having a foot in the now and an eye on the future!
Limited talent (and other) resources, pressing timeframes, squeezed budgets and a range of similar challenges are forcing CIOs to focus more on the “tactical now” and less on the “strategic future” – at a time when that firm eye on the future has never been more important.
CEOs are reassessing their organisational strategies, creating both opportunities and challenges for CIOs. Thinking glass-half-full, this allows CIOs to play a more active role in shaping business strategy by aligning it closely with technology initiatives. By pushing the integration of technology strategy into overall organisational planning, CIOs can drive digital transformation and innovation, ensuring that IT investments contribute directly to business growth and competitiveness.
However, the challenge lies in the time and effort required for formal strategy development and execution. With executives, including CIOs, already managing multiple priorities, dedicating sufficient focus to strategic planning can be difficult.
Remember though – the train director found time to stand at the door at each railway station – as the pace of business and technological change accelerates, having a well-defined strategy becomes even more essential for long-term success. A strong strategic foundation enables organisations to navigate uncertainty, capitalise on emerging opportunities, and maintain a competitive edge.
A FINAL THOUGHT
It’s important to emphasise that mine is a “survey” of nine CIOs, but it’s interesting to see what challenges and trends have emerged from CIOs “standing at the door” of their IT Projects, chatting to stakeholders and rolling up their sleeves! All nine CIOs found the exercise useful! Thanks to LNER for the inspiration!
Even more telling is that four out the five challenges highlighted by my CIOs (I’ve asterisked them * above) were also highlighted in the Gartner report that I said made me shudder last summer! This shows (i) how good Gartner are and (ii) how, despite our unique projects and organisations, many of the challenges we face are universal!
At Stoneseed, we are helping CIOs, project teams and organisations from all industries and sectors with these challenges – and more. Like LNER we even have our own platform! We’d love to help you too
More about Project Management as a Service from Stoneseed
Sources:
Gartner: Leadership Vision for 2024: Midsize Enterprise CIO – Joseph Provenza, Donna Scott