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In our initial interviews with CIOs, we’ve observed that most IT organizations are proactively preparing for growth, even though few report significant growth in their enterprises yet. Specifically, CIOs said they are continuing to drive costs out of IT, tightening demand governance, making infrastructure more robust and modernizing core business systems in anticipation of increased demand in 2010. To do this, some IT organizations have assembled special teams and obtained special funding specifically for the purpose of preparing for growth.
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Gartner believes it is essential that IT organizations plan for the return to growth before growth returns. (See “It’s Time to Prepare for a Return to Business Growth”). The demand level for IT will almost certainly increase when businesses begin to detect resurgence in demand from customers. Waiting for new business demand to arrive, however, will be too late.

Our hypothesis going into this research was that, given the unique nature of the global recession, we would see CIOs taking unique and unprecedented steps to ensure that IT could support – and even drive – growth in the enterprise. While we find evidence to support that CIOs are indeed taking unique steps, most of those interviewed to date are carrying out business unit growth strategies, as opposed to leading growth strategies. The focus on using IT to drive innovation and growth in 2010 has been a recurring theme in our interviews.

CIOs’ ability to help their organizations navigate economic recovery will have a profound impact on them personally, as well as on their organizations. This is an “opportunity moment” for CIOs to make a strong and detectable impact on business performance – not an easy task, given the continued cost pressure on IT.

CIO CALL TO ACTION
CIOs who haven’t already done so should begin to shift focus toward helping their organization navigate the economic recovery, with an eye toward supporting growth. Even organizations that are still seeing decline must plan now or risk missing significant business opportunities. Specifically, we recommend that CIOs do the following:
• Become an integral part of the team responsible for the growth strategy of the enterprise.
• Monitor internal and external leading indicators to detect changes in the market before they are obvious (see the October 2009 Gartner Executive Programs report, “Leading Indicators of Business Performance: The CIO’s Role”).
• Obtain resources – budget and staff – now to execute on growth strategies.

BOTTOM LINE
CIOs who fail to take a proactive stance on helping their organizations navigate the economic recovery run two significant risks: First, they may be ill-prepared to support their organization when growth returns; and second, they may be left behind as the business moves ahead with growth strategies without IT’s full involvement.

Business Impact
Organizations that prepare now for economic growth will reap substantial financial benefits that will be evidenced in greater business agility and higher revenue.

We invite your comments and suggestions, and encourage your participation in the research process for this topic. Please e-mail the authors with your comments and suggestions. We also invite you to participate in a case study.
Barbara Gomolski: Barbara.gomolski@gartner.com

Ken McGee: Ken.mcgee@gartner.com
Jorge Lopez: Jorge.lopez@gartner.com

Kathy Harris: Kathy.harris@gartner.com

Additional Insights:
1. “Return to Growth: Three Short-Term Economic Scenarios and Their Impacts for 2010-2011″ (Research)
2. “How Performance Management Can Help Prepare Your Business for the Return to Growth” (Research)
3. “How to Prepare for the Return to Business Growth: Gartner’s “Growth” Research Agenda for Clients” (Research)