New data from Garnter Inc. shows that almost half of BoDs anticipate changing their organizations’ business model as a result of the pandemic
“BoDs play a strong role in helping the executive leadership team focus beyond the short-term risks associated with this extended pandemic,” said Partha Iyengar, distinguished research vice president at Gartner. “Technology-driven digital transformation can, and should be, a strong enabler in addressing employee, customer, supply chain and broad brand impact to position the enterprise to come out of the crisis stronger.”
COVID-19 Is Prompting Budgetary Changes for BoDs
The majority of BoDs (67%) expect budgetary increases in technology as a result of the pandemic, while functional areas such as marketing and HR are expected to experience budgetary cuts. Respondents expect a nearly 7% increase in their IT budgets for 2020 (see Figure 1) “The long-term ask of BoDs during COVID-19 is to approve forward-looking investments even in the face of potentially plummeting revenue and profits,” said Mr. Iyengar.
Digital Technology Initiatives at the Top of BoD’s Business Priority List
Driven by the onset of COVID-19, digital technology initiatives will serve as the top strategic business priority for BoDs over the next two years, followed by customer engagement and managing the remote workforce.
Eighty-six percent of respondents deem technology as having a transformational role in addressing strategic business priorities, which is why most organizations are expected to create a new “Chief Digital Officer” role to respond to COVID-19 in the long term.
“BoDs must take innovative approaches to their governance models by leveraging technologies and IT expertise to accommodate the impacts that the pandemic is thrusting upon their digital transformation agendas,” said Mr. Iyengar.
BoDs View the CIO as a Partner
Almost all BoDs expect functional leaders to collaborate with one another during COVID-19. More than half believe that CIOs serve as partners with senior business leaders, while over a third look to the CIO to lead digital business issues alone.
Longer-term renewal is an important focus area for the Board, with 28% of respondents focusing on the “Renew” phase of The Reset. Executive management is less focused on renewal (18%) and more focused on the “Respond” phase, with just under half reporting it being their core focus area.
“CIOs and the rest of the executive management team should engage with the BoD on creating a longer-term strategy for revival – and even survival – post crisis,” said Mr. Iyengar.
Founder Dinis Guarda
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