Influence of chief executive officer-chief information officer relationship on alignment of is/it to business : a case for Nairobi stock exchange listed companies
Mugo, Eric Micheni
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This descriptive survey aimed at establishing the type of CEO/CIO relationship and the effects of this relationship on the alignment of IS/IT to the business goals. The study focused on the on the Nairobi Stock Exchange (NSE) listed companies. The research methodology involved data collection using a questionnaire, which was pretested before rolling out, where the target population was the ClO and the CEO of thirty (30) out of possible fbrt two (42) companies listed in the Nairobi Stock Exchange out of which twenty four (24) or 58% of the total population responded positively. The results show that 74% of CIOs report directly to the CEO, have budget, a strategic plan that is geared to the business strategy and had high knowledge of their business environment which strengthened their position in accessing the CEO and also involved in decision making. In the companies surveyed, the average age of the ClO was fort one (41) years and the CEO fifty (50) years with an average stay of four to five (4-5) years and greater than five (5) years respectively. In companies that had good CEO-CIO relationship, the investment in IT was high in the recent past and the return on the investment could be seen in the increased profitability. A framework has been proposed that takes into consideration the CEOClO relationship and its impact on the implementation of the organization’s business strategy. In conclusion, the study shows that most of the companies have elevated the position of the ClO to the top level management with a budgetary provision, ISSP process and the general relationship with the CEO that is good since their earlier IT phobia is slowly diminishing resulting in more interest and involvement in IT. The study recommends that organizations requires to elevate the position of the CIO to a level that s/he can influence decision making process and be innovative particularly in companies that are dealing with manufacturing.