Embed IT in the business. Communication is critical to managing this paradox, so many CIOs are adding relationship managers to the IT team. The key, says Stephen Woerner, chief integration officer at Constellation Energy, is to fully embed those people in the business. "We have centralized infrastructure and architecture teams, but the rest of IT reports to the business," he says. Constellation is currently replacing a customer care and billing system in one of its operating units. "This is a process-improvement project that happens to have a software component," says Woerner. "Having IT in the business shifts us from department thinking to an enterprise view."
To make the embedded IT model work, says Woerner, tie IT executives' compensation to the P&L. "I collaborate with the business unit leader on performance review and compensation for IT staff," he says. "Compensation ultimately rolls up to P&L."
Read more about cio role in CIO's CIO Role Drilldown.