Decision Making & Organizational Politics, Essay Example

Introduction

In a business environment where information technology is ubiquitous, and stakeholders are increasingly technologically aware, the modern CIO must possess a combination of technical expertise, business savvy, and organizational leadership skills in order to be both successful and effective. In most cases, a CIO is brought to an organization not to maintain the status quo, but to drive technologically related change initiatives and lead the development of a collaborative vision of how IT strategies support business objectives. In 2005, former Overstock.com CIO Shawn Schwegman came under fire for sending an email admitting to and apologizing for problems related to the company’s information systems network and delays in the processing of customer orders. Schwegman went on to describe the computing environment as “horribly architected” thus warranting the need to plan for the worst. While Schwegman argues that the email was sent with the best intentions, it instead created discomfort among Overstock’s internal stakeholders and non-technical partners. The modern CIO calls for a leadership style that balances an understanding of the business culture and the IT needs and organizational priorities of key stakeholders, with a global vision, business savvy, strategic planning and political skills. As Overstock’s CIO, Schwegman acted within his responsibilities when he communicated his concerns about the IT environment. However, the manner in which the information was conveyed was not politically astute and bears further analysis. Being a CIO is about managing relationships and change; it’s also about being an excellent communicator. This case study will explore how Schwegman’s message could have been conveyed using a more strategic and politically savvy approach.

Organizationally & Politically Appropriate Communications

Schwegman did not exercise good organizational politics by communicating Overstock’s technology issues in the way that he did. His email lacked professional tact and did nothing to communicate the value of IT. While Schwegman’s intentions may have been innocent at heart, after the email was publicly leaked, Wall Street analysts promptly downgraded Overstock’s stock. Gartner, an information technology research and advisory company, posits that Schwegman could have been more successful had he communicated in such a way that demonstrated sound business understanding (Basualdo). Instead, Schwegman publicized his fears and concerns, yet offered no suggestions on how to proactively address the situation. He made no consideration of how external stakeholders, including Wall Street, may perceive the message if it were publicly leaked.

As the CIO, Schwegman should have recognized that email is not an appropriate medium for airing such concerns due to how easily it can be forwarded to external entities. Secondly, Schwegman should have had the political acumen to consider the cascading impacts, including brand damage, such a message could have. Schwegman should heed the advice of Gartner executive partner Basualdo, “If the head of Sales would not say it that way, neither should you”. In short, Schwegman’s confessional correspondence should have been communicated in such a way that raised awareness to his concerns, but without leaving stakeholders feeling ill at ease. Stakeholder discomfort could have been avoided had Schwegman “suggested specific things the partners could have done to protect themselves” (Schuman), or had Schwegman communicated his concerns during a face-to-face meeting or conference call.

Lessons Learned      

The first piece of political advice I’d like to extend to Schwegman is not to send potentially damaging information via email, and to consider the audience and how they may interpret the message.

Secondly, if Schwegman truly felt compelled to send the message, his concerns about the horribly architected IT infrastructure should be coupled with the root cause of the problem, and a proposed solutions for addressing the issues presented. I would encourage Schwegman to perform the due diligence necessary to help him “have a big-picture description of all that is happening and changing, and why and how it fits together – so that IT staff, the user community and senior management believe that [the situation is under control]” (Rowan).

Today’s CIOs are expected to be excellent communicators. In large, publicly traded corporations like Overstock.com, CIOs also have the added benefit of having corporate communications and public relations department representatives at their disposal. As such, I would also recommend that Schwegman have these resources review his electronic correspondence prior to their distribution to business constituents. This would help ensure that his messages are politically correct in tone, and not potentially damaging to brand name and shareholder value.

As a chief officer of the company, Shawn Schwegman should have addressed his concerns on a more professional, politically astute level. As this is a human issue, versus a technology one, Schwegman should participate in executive training programs to help him develop better decision making and communication skills.

References

Basualdo, Militza. (2010, March 10). How CIOs create and communicate it value [Web log message]. Retrieved from http://blogs.gartner.com/road-notes/2010/03/10/how-cios-create-and-communicate-it-value/

Rogow, Bruce. (2010, January 21). IT’s fun being a leader again. [Web log message]. Retrieved from http://blogs.gartner.com/road-notes/2010/01/21/its-fun-being-a-leader-again/

Schuman, Evan. (2005, August 26). The CIO who admitted too much. CIO Insights, Retrieved from http://www.cioinsight.com/c/a/Retail/The-CIO-Who-Admitted-Too-Much/