John C. Danielsen: Lessons learned as a CIO

Before establishing his own management consulting and information technology (IT) company in 1998, John C. Danielsen was a practicing chief information officer. Armed with three degrees in economics (from undergraduate to postgraduate), Danielsen ran the corporate planning division of Pacific Gas & Electric (PG&E) in California for eight years. His boss then asked him to become CIO, a post he held for 10 years up until his retirement.

During his tenure as CIO, Danielsen saw his role in the organization change with the advent of new technologies.

"Automation was the early focus of IT. And so the main job of the CIO was to manage this technology which was the source of a substantial increase in business productivity," he says.

"A revolution swept through the 1980s that transformed how businesses and consumers used technology. This was the PC (personal computer) revolution, the client server phase. The main duty of the CIO then was to work with colleagues and business partners, that is, to move technology out of the ‘glass house’ so that all the people in the organization can benefit from it.

"Another seismic change erupted in the 1990s and created opportunities for new industries and new customers. The Internet established new technology channels to customers and suppliers. Now, the main job of the CIO is to work with customers, help them or interact with them through the Internet and help business integrate forward."

Danielsen reflects on some lessons he has learned over the last 15 years, first as CIO and then as IT management consultant. He says speed is of the essence. "Change is accelerating and the pace is getting faster all the time."

"Only the paranoid survive." He says the pace of change compels the paranoid to closely monitor developments in the field, including the competitors’ moves.

"Team with your clients. Communicate the business vision within IT," he advises. Danielsen believes the business vision must be clear in all IT projects so that results can be measured against related goals. "Propose new projects to stretch the boundaries. Tell folks what’s going on. Be a creator so that you can add value to your organization. It’s all right to break boundaries. Be a visionary," he says.

New markets

Over the years, Danielsen witnessed business becoming information. The existence of new market segments has encouraged new competitors. These competitors have brought new products. And technology has widened the customers’ choices.

IT will also need to be reworked. Technology will not stay the same and it becomes the CIO’s job to manage this re-working. Software is rapidly developing all the time. "In essence, the CIO is really a change agent. Since he cannot stop the change from happening, he has to work doubly hard to stay ahead or keep pace and still keep the whole organization alongside him. He should not get attached to a particular technology that has outlived its usefulness to the business."

"Share information with the customer. Go online. This can translate into a lot of savings. It’s the CIO’s job to propose how best to do this. Will you use an intranet, an extranet, or the Internet?," he advices.

"Keep information real time or near real time. This is always a big help to decision-makers. It facilitates communication and project evaluation."

Finally, Danielsen learned it is useful to adopt a customer-centric business model.

"Use customers satisfaction measures as your guide." The CIO serves many customers, internal and external. His support for his internal customers will directly affect the organization’s ability to serve his external customers.

IT is a significant enabler of business growth, diversification and reinvention. Many if not most new product and service offerings utilize information and IT.

Danielsen knows the CIO is an essential part of good business in the new millennium. A lot hinges on his knowledge, vision, willingness to learn, and ability to cooperate with other members of the organization.