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Bold CIOs Can Make Lemonade Out of a Lemon of an Economy

The pundits that have long been predicting an economic slowdown are finally having their day in the sun, and as if having won some macabre bet can be found gloating in the “victory” of an economic down cycle. The news has already affected the IT industry, with CIOs speaking of shrinking budgets, and talk of abandoning or limiting new projects. CFOs with their eyes on the till need only glance at corporate spending to realize most IT shops are behemoths on the spending front, sending their IT counterpart scurrying in fear. One gets the sense that CIOs are shrinking back into their technical hole, to quietly trim away costs and live by the admonishment to do more with less, the hallmark of IT after the Internet bust.

While an economic recession certainly slows spending across the board, it does not eliminate it in any area. Everyone from C-suite colleagues to vendors are more willing to listen to and evaluate a high quality proposal rather than rushing to and fro, a trail of bills in their wake. In this environment, the CIO that can partner with the CFO and make a compelling case for strategic IT spending can rule the day.

The traditional wisdom that suggests retrenching during a recession, and waiting under a rock until happy days return is not always the best advice. As others crouch in fear, openings appear in the competitive landscape that can be exploited by the bold and nimble. While projects are canceled or shelved, there is an opportunity to present others that can demonstrably increase a company’s capabilities or further its objectives. While competitors cringe in fear, bold maneuvers can occur unopposed.

An economic downturn creates a more narrow focus on value, the improvement of a company’s condition based on a specific effort. Organizations that can create compelling value for their internal peers or customers are always in high demand. Take the strategy consulting firms for example, their advice is equally, if not more valuable when times are difficult versus market conditions where everyone is a winner. Applying the same mindset to corporate IT can make it a competitive weapon during down times, rather than another money pit to be scrutinized.

CIOs and CFOs working hand in hand can accelerate this process even further. While the financial savvy of IT has improved dramatically over the past several years, the CFO bring financial acumen and insight to developing strategic projects that few CIOs possess. This dynamic duo can combine the CIOs broad knowledge of business processes and technical acumen with the CFOs financial capabilities and strategic insights to design projects that would accelerate corporate objectives in high times, and downright obliterate competition in leaner times.

Despite the doomsday scenarios predicting otherwise, IT can weather this economic storm and deployed well, use it to a dramatic competitve advantage.

About Patrick Gray: Patrick Gray is the founder and President of the Prevoyance Group, located outside Charlotte, NC. Prevoyance Group focuses on providing IT Strategy consulting consulting, which covers the “softer side” of IT, focusing on issues such as organizational structure, CIO/C-suite relationships and insource versus outsoutce decisions. Past clients include CA, Gillette, Nissan, OfficeMax, Pitney Bowes, SAP and several other Fortune 500 and 1000 companies.

Patrick graduated from Boston College with a triple major from the Carroll School of Management. After spending his youth “anchored” to the East Coast of the United States, Patrick’s consulting career has allowed him to work in and explore the rest of the US and much of Europe. His recent work has focused on international projects, and he has led implementations for foreign subsidiaries of several US companies. Patrick frequently speaks for large audiences during client engagements, and once had the opportunity to speak at a former Royal Manor House near Windsor Castle.

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