Companies should hire CIOs with "business heads", says Magix Africa MD Nkosi Mcineka.
These are the people who have the capacity to communicate at board level, and who can also provide a business case why a company should invest in ICT solutions that may have a short lifespan.
Mcineka spoke to ITWeb following a presentation by Judge Mervyn King on "ICT solutions to corporate governance" at the Kyalami Castle in the north of Johannesburg this week.
He says there is still a tendency to hire someone who has strong ICT credentials, but does not necessarily have good business acumen. This results in a CIO who may motivate for ICT investment without the full grasp of how the company can use the solutions to save money and extract maximum value.
Judge King agrees and questions why the CIO shouldn`t sit on the board.
"After all he knows more than the board about the operational risks that ICT presents," he says.
King says there is an increasing dependence on outside service providers for ICT management, which increases financial risks as well as the risk to the company`s reputation.
"How can you keep your issues confidential when you have an outside service provider?" he asks.
The board should have a backup plan if it has to rely on an outsider`s advice for ICT management, he says. The board should also consider the fact that it may be forced to renew the contract in order to retain the intellectual expertise of the outside consultant.
He recommends greater board involvement in ICT. He says board members should not be afraid to ask intellectually na"ive questions about technology.
King says quality governance will gain the CEO the support of stakeholders and quicker turnaround time for decision-making. The company will also be able to attract a better quality employee, and when the CEO makes mistakes, which will inevitably happen, there will be little scandal, he says.
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