Transformation of New IT Leaders

EDIZEN is an organizational consulting practice committed to helping large organizations improve performance through strategic human capital management.


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Beginning in the early '8'0s right up through the Internet euphoria of the late '90's and beyond, technology led the world into a period of unprecedented growth. Technologists and engineers, as the brains behind the brawn, were instantly elevated to star status. They were given virtual carte blanche in the quest to create the newest and latest of everything imaginable.

Within companies, techies were considered a separate and distinct group from the rest of the organization. Elevated by their status, huge salaries, signing bonuses and stock options were offered as incentives for company loyalty. And, as prescribed by their own sub-culture, techies played the role of the "geek" – introverted, analytical, quiet perfectionists who made up in talent what they sometimes lacked management acumen.

Now, fast forward to 2002. The economic and business landscape has turned abruptly. Investors are no longer mesmerized by gizmos and gadgets. And, rather than simply creating newer and better technologies, companies are looking to get the most out of what they already have. This means that technologists need to not only understand technology but also how it integrates with the aspects of their business. They need to interact and communicate effectively with people from throughout the organization

Technology executives and managers are now trying to redefine their roles and demonstrate the value of IT to the bottom line. The biggest challenge: Unlearning their old work styles and replacing them with the leadership skills needed to create networks and build relationships across company functions.

In an effort to understand how companies are responding to the need for IT leadership development, Edizen recently conducted an in-depth qualitative market research study with technology company executives and others in the industry. The study consisted of one-on-one interviews with executives from throughout the New England/New York region representing a cross-section of the IT business landscape – big corporations, mature startups, venture capitalists, and outsourcing firms.

The clear message from executives: With a focus on development and leadership, organizations can bring the skills of IT managers in line with their business vision and values.

Overwhelming, executives participating in the study agreed that collaboration is the new language of technology and that when you ignore the people aspects of management, you jeopardize the bottom line results of the business.

"The world of business is no longer black and white but shades of gray," said Kevin Casey, Executive Vice President of Operations for AT&T Broadband and a study participant. "Technology leaders must have one foot in strategy and one foot in implementation in order to be effective. It's essential that they be able to bring people with divergent views and opinions together to achieve common goals."

Julia Austin, VP of Engineering at Akamai Technologies Inc., said, "Leadership in technology today must be far more sensitive to the human element, accepting different work styles and allowing work-life balance. As business leaders, we must get people involved and engaged."

While the individual insights raised through the qualitative study reveal many concerns with far-reaching implications, the general consensus from executives validate the trend to transform IT managers from techie-geek to people chic. Following are several top-line findings …

It's no longer enough for IT managers to be great technologists – they must also be able to communicate vision and build value through relationships.
Nearly all study participants agreed that today's business problems transcend technology, making it essential for managers to understand the business as well as the technology.
Executives are looking to IT mangers to not only be technically savvy, but also effective facilitators, collaborative decision makers, and caring models of balance.
Companies are restructuring IT departments and redesigning leadership models in dramatically new ways to build skills and keep key talent.
While all study participants recognized the need for "leadership," not everyone agreed on exactly what that means. Executives at large, mature companies consistently emphasized the strategic and relationship dimensions of leadership, whereas younger, smaller companies emphasized the business and personal dimensions.

To put the implications of this trend in perspective, consider the dynamics of your workplace environment. Are there IT people in your organization who have great technical ability but lack the people skills required for management? Do you currently have people in place who undermine your goals because of poor management skills? Supervisors who don't interact well with their staffs and can't communicate effectively? Managers who "micromanage" and fail to offer their people the room they need to grow? Leaders who disrespect others and demonstrate a lack of concern for employees?

The key to surviving in today's challenging business environment is delivering consistent performance over time. More than revenues and profits, performance today is measured in terms of value. Developing the new skills of IT leadership will go a long way in helping to leverage the value of technology as well as build the bench strength talent needed to move your company forward.

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