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CIOs Should Align With The C-Suite On IT Budgets


The final decision-making role of the CIO within an organization’s leadership team is being widely debated and discussed by both CIOs and line-of-business executives. CIOs are realizing they will have more influence inside their organizations if they partner more effectively with others in the executive suite.

To shed some light on this topic, XChange events and IDC Health Insights conducted a study of CIOs who attended our recent Healthcare IT Summit and the results were somewhat surprising. Only 20 percent said they are the final decision-maker on IT budgets with a slight majority—58 percent—stating that they are on the team that makes decisions on IT budgets. The remaining 22 percent said that they have an influence on budgets, but are not responsible for hard decision-making.

These results show that the large majority (78 percent) of IT leaders in the healthcare space are thoroughly involved in the decision-making process, along with the team of other C-suite leaders in their organization, and/or are the final decision-maker in regard to IT budgets. What do the results tell us?

For one—CIOs and IT leaders in the healthcare industry are working more collaboratively with their line-of-business leaders, and according to the CIOs that we spoke with, it is definitely beneficial for IT departments. It also tells us that with more influence on the budget, IT leaders are able to impact the organization through the use of IT tools, while better integrating those solutions into the rest of the business infrastructure.

“Being the final decision-maker, and being a part of the budget decision-making team, positively affects our IT department because it allows IT to have the input and voice needed to guide our organization from an IT perspective,” said Brian Sterud, the director of information management at Brookings Health System.

It also could potentially leave room for innovation on the IT leaders’ part—the sky’s the limit. “My role in the budget decision-making has been beneficial for IT because it really helps us get the things that we want and need, especially during the changes that are coming around the bend (meaningful use, etc.), and I am afforded the latitude to make those decisions,” said Sterud.

Richard Corovessis, chief of information technologies at Health Quality Partners, said, “I make the decisions on what is going to be valuable to us and important to the success of our organization. I am the king of the IT department so it is very positive for me to have such a large role in the IT buying process.”