Do boards get ICT?

This was the question that leapt to my mind after reading remarks by the ANZ's former head honcho of ICT, David Boyles, that directors were continually asking him if and how they could get ICT costs down.

Not "how can we maximise the contribution ICT makes to our business?" or "how can ICT help drive the innovation we need to stay ahead of our competition" but the old and very limiting "how can we minimise our costs?" chestnut.

Now your writer is not stupid enough to think that ICT should not face the same scrutiny -- and pressure to keep costs as low as possible -- as any other part of an organisation.

However, the attitude identified by Boyles is potentially very dangerous.

Executives who bow to pressure from directors to cut ICT costs to the bone may not only miss opportunities for growth or efficiency, but compromise their organisation's brand by expecting an under-resourced ICT operation to keep everything running while juggling demands from business units for new products.

According to Boyles, directors need to ask themselves "if I cut the [technology] staff to the bone, and the systems stop working for one day, what is the cost to the organisation?"

However, they really need to do more than that. To ensure the organisation in which they hold such a critical position is on the right track, a director without any sort of tech background must have a deep understanding of the role ICT plays in the business. While they can no doubt get well-considered perspectives from C-level executives such as a chief executive officer or chief financial officer, the individual with the most comprehensive view is obviously the chief information officer. That is the person a director should seek out.

Of course, a well-rounded board should really include members with solid ICT experience. However, as Boyles notes, this is not always the case. "How many ex-CIOs do you see on large corporate boards … you get attorneys, HR directors, COOs, but where are the tech people?" he told ZDNet Australia's Steven Deare.

It is a damn good question. One wonders to what extent a lack of board understanding and expertise about ICT is holding back the performance of Australian business.