What CEOs Often Get Wrong About Innovation

Innovation at its core is really just defined as a new idea that solves a problem. Let’s focus in on the last three words of that sentence “solves a problem.” To be innovative, one needs a problem to solve. We need to help our CEOs understand that as CIOs, we are here to solve problems. We aren’t typically creating a product, we are supporting the business and helping it grow by providing technological solutions that help the organization achieve its goals. That often comes in the form of solving problems that are holding it back or that are pain points for the business’s operations.

Unfortunately, these days, many CEOs feel that their CIOs aren’t innovative enough unless they come up with flashy solutions and throw around buzzwords like AI or digital transformation not really knowing what they mean or how they even apply to their business. I have been shocked lately as I have talked with several CEOs and discussed projects with them about how many of them seem disinterested in solutions that merely solve the problem. When discussing projects with them, they all perked up when I talked about using AI agents, generative AI solutions or AI scribes for healthcare when they were disinterested in discussing projects around payroll solutions or other system implementations or improvements. This mindset is very dangerous in that a good CIO is there to help the business solve problems by proposing the best solution, not the flashiest or the sexiest solution. When we think about project management, three main tenets come to mind: the project is to be delivered on time, on budget, and be technically adequate (within scope). When we are delivering a project, we don’t add features to give the final product more wow factor as that would typically either mean increasing the budget throw additional manhours or duration or both. The goal is to deliver something that is technically adequate to meet the needs of the business. The same should go for the technological problems that we solve as CIOs. Being innovative means solving the problem in the manner that best suits the organization, nothing more, nothing less.

Unfortunately, our CEOs are inundated with marketing hype trying to sell them flashy solutions to problems that don’t exist or at least are not the most feasible solution to an existing problem. Additionally, they are also exposed to things that other organizations are doing that may or may not be applicable to their organization. As CIOs, this is where we need to put on our educator hat and educate our CEOs on how and why we choose the solutions we do. Sometimes the best solution to a problem is really the simplest solution.

Given this introduction, let’s talk about several questions about innovation in IT.

What is the CIOs role in innovation?

As a CIO, our role is the use of technology with business goals. The investments that we recommend in technology should directly support the goals and objectives of the business and be aligned to strategic objectives stated in the strategic plan or be solutions to problems that are preventing the business from achieving one or more of its goals or objectives. Innovation comes into play in providing those solutions. As stated earlier, innovation is just a new idea that solves a problem. As CIOs, it is our job to facilitate those new ideas.

Does innovation always require a novel idea?

Unfortunately, I think there is a misperception that innovation always requires a novel idea. While a lot of innovation really does start with a novel idea, especially those that we hear and read about, innovation can happen on a daily basis without creating something “novel”. Just coming up with a new idea or solution to a problem that your organization hasn’t tried before is being innovative. That doesn’t require that the idea or solution be so entirely new or original that no one has ever done it, just that the application of it is new to your organization or new to that problem.

With all of the focus and emphasis on innovation these days, isn’t there a cost to trying to drive innovation?

Absolutely. Organizations that want to strive to be innovation-first organizations where their goal is continuously come up with innovations invest in research and development or experimentation time. That may look like entire departments devoted solely to innovation or organizations over staffing their IT departments to give their staff time to experiment and play with new technologies in the hopes of them coming up with innovative solutions. There are very real costs to doing this. Taking your average overworked, understaffed IT department and coming in with a mandate that it needs to become more innovative just doesn’t work. Now, that doesn’t mean that they can’t come up with innovative solutions (many that I have observed do, by the way). It just means that they aren’t going to be actively looking for new ways to be innovative because the organization hasn’t staffed them for that ability.

What are the pitfalls that a CEO can get into when trying to hire an “innovative” CIO?

This really comes down to knowing your business, budget and what you need and can sustain. If you work for a nonprofit healthcare organization, as I do, you probably aren’t going to want or need to hire an executive from one of the big tech firms, even if you could afford them, thinking that they are going to bring innovation to your organization. If you do, the following will probably happen. They will recommend solutions that you can’t afford and the process of constantly being told no and not getting to work on cutting-edge technology will drive them away and you will be stuck recruiting for a CIO yet again, which can be a very costly endeavor. You are much better off hiring someone who understands and gets your industry and can bring their experience and expertise to your problems. Just because they have developed AI solutions or worked on the latest self-driving vehicle technology doesn’t mean they aren’t innovative or can’t provide an innovative approach to problem solving at your organization.

Does innovation by the CIO always involve technology?

To this question, I would answer with a resounding “NO”. At the end of the day, what you should be looking at is the best solution, not the most cutting-edge solution, not the most technical solution, not the most complicated solution, but the best solution. Sometimes, the best solution may involve a process change and may not require any technology at all or the best solution may require a process change followed by a technological solution. This is where you should listen to your candidate’s problem-solving skills and judge those rather than judging whether they fit your vision of being innovative or not.

This blog post has been written from my experience in technology both as a technologist and a leader and in dealing with numerous CEOs. Given that my experience may not be the same as yours and as always, I welcome your comments and perspectives and always look forward to hearing the perspectives of others as an opportunity to potentially learn and grow.