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As shown in ssss1, we are moving up the Laudato Hierarchy of IT Needs. After getting the foundation solid, the next step is to make IT cost-effective. Get it right, and then get it cheap. Sometimes you have to spend a lot of money to get things stable. Imagine that your website is down because an engineer misconfigured it and then walked out. If the only person who can fix it bills at $500/hour, you grit your teeth and pay the bill. If you need to hire an offshore team to watch your batch systems at night, you grit your teeth and pay the bill. Unreliable systems are expensive.

ssss1 Laudato Hierarchy of IT Needs

© 2017 Andrew Laudato All Rights Reserved Hierarchy of IT Needs

Place your IT Department on the chart shown in ssss1. If you're in the bottom left, with systems that are both unreliable and expensive, it's time to update your LinkedIn profile. The bottom right—low cost, low reliability—is typical for companies that don't see value in IT. Keeping costs low is the only priority. The CIO probably reports to the CFO in this scenario. Sometimes these companies decide they don't need a CIO, and they turn the function directly over to the CFO.