During a session this afternoon on IT governance moderated by Retail Systems Research’s Brian Kilcourse, Rue La La COO Jeff Marshall and PETCO CIO Herman Nell outlined ways retail CIOs could become more effective in running their own departments – and selling their strengths throughout the organization.
Below, some of their suggestions:
(l to r) Jeff Marshall, Herman Nell and Brian Kilcourse talk IT Governance during NRFtech
Embark on an education campaign. One common discussion topic at NRFtech has revolved around the best way to sell company CEOs and a Board of Directors on IT investments. Be careful, Herman cautions, because the most effortless solution isn’t usually the best. “In governance today, the easy thing to do is go to your CEO and say, ‘I have an idea, it’s an IT thing, but trust me it’s going to work,’” he said. “And that’s a sure way to fail.” IT executives need to be able to sell the project to upper management – as well as down to other employees and departments – and get buy-in for it to be successful.
Build the infrastructure. Ensuring that the company is properly aligned and an infrastructure is in place should be a top priority among retail IT executives. “The demands on us from customers – internal or external – are only going to get higher,” Marshall said. “If you don’t have an infrastructure that will enable you to be agile, I don’t think you’d be doing your job.”
Understand the changing business and adapt – quickly. As Herman so concisely put it: “You have to be able to keep track of the flavor of the day.” The priorities within retail companies change monthly, if not weekly. If you’re not constantly re-evaluating your department’s agenda to coincide with where the company is going, you’re going to become irrelevant. Quickly.
Measure. Measure. Measure. In the case of Rue La La, Marshall said, he is working with his team on a long-term “road map” to define where they are, places they should invest, and how the end game could impact customers and the company brand. “When you’ve got something that you can measure, it’s a simpler, shorter conversation,” he said.
Make a business case. The total cost of IT usually ranges between 1-3% of a retailer’s sales. Sound steep? Maybe. But not if you consider that the IT department typically permeates 40-50% of the entire business. Executives are beginning to see the strategic importance and value of IT, Herman said. As a result, “when it comes to initiatives, I find that we don’t get that much push back when we have a strong business case.”