The Adaptive CIO: Peacetime vs. Wartime Leadership
Peacetime in business means those times when a company has a large advantage vs. the competition in its core market, and its market is growing. In times of peace, the company can focus on expanding the market and reinforcing the company’s strengths.
In wartime, a company is fending off an imminent existential threat. Such a threat can come from a wide range of sources including competition, dramatic macro economic change, market change, supply chain change, and so forth.
— Ben Horowitz, Peacetime CEO/Wartime CEO
The concept of a "peacetime" and "wartime" CEO was popularized by Ben Horowitz, cofounder of Andreessen Horowitz. Ben's key message is that peacetime and wartime require radically different management styles. I believe this concept can be applied to CIOs as well. As an effective CIO, you never just take a job. You are accepting a mission. You need to know from the outset if the mission is to take the hill (growth work) or to stop the slide (turnaround work). There are some questions you must explore to get a sense of the mission.
How is the current technology organization viewed by the wider company, and especially other leaders? How much shadow technology is happening in business areas? What changes do the CEO and other leaders want to see? How is technology effectiveness measured? How is morale in the technology organization and what does turnover look like?
If you are fortunate the company is facing growth challenges and you have a realtively healthy technology organization. You have an opportunity to reinforce it's strengths, unleash it's talent, and use modern technology and methods. Congratulations, you get to be a peacetime CIO.
If you come into a troubled organization you will not last if your strategy is simple change leadership. The organization will need more than just change, and you need to set different expectations with the company when they hire you. You are not coming in to make changes, you are coming in to do a turnaround. In short, you need to be a wartime CIO.
Of course, the reality is often more complex and nuanced. Organizations rarely experience pure "peacetime" or "wartime" situations; instead, they often face a combination of challenges and opportunities that require a flexible and adaptive leadership approach. For instance, even during periods of growth and stability, a CIO may need to exhibit decisiveness and a focus on execution to address specific critical projects or initiatives. Conversely, in times of crisis, fostering innovation and creativity within the team can be crucial for finding sustainable solutions.
Even so, it's interesting to compare and contrast the different styles:
| Aspect | Peacetime CIO | Wartime CIO |
|---|---|---|
| Focus | Strategic planning, long-term goals | Rapid response, short-term objectives |
| Risk Tolerance | Higher tolerance for experimentation and innovation | Lower tolerance, prioritizing stability and security |
| Resource Allocation | Investment in long-term projects and innovation initiatives | Allocation towards immediate needs and critical infrastructure |
| Leadership Style | Collaborative, fostering innovation and creativity among teams | Authoritative, decisive, focused on execution and crisis management |
| Decision Making | Data-driven, based on comprehensive analysis | Quick, based on available information and immediate needs |
| Technology Adoption | Emphasis on emerging technologies and future trends | Focus on leveraging existing technologies for immediate impact |
| Communication | Transparent, focusing on long-term vision and goals | Clear and concise, prioritizing urgent messages and directives |
| Resilience | Adaptive to change and market fluctuations | Agile and responsive to unforeseen challenges and disruptions |
| Stakeholder Relations | Building relationships for long-term partnerships and collaborations | Engaging stakeholders for immediate support and alignment |
| Funding | Engages stakeholders for additional funding | Makes due with what they have |
| Personnel | Focuses on developing people and culture | Focuses on minimizing casualties and maintaining morale |
| Values | Creativity, Innovation | Efficiency, Effectiveness, proven solutions |
| Innovation Approach | Encourages experimentation and risk-taking | Pragmatic, prioritizing solutions with immediate impact |
| Performance Metrics | Focuses on long-term growth and ROI | Emphasizes short-term results and operational efficiency |
| Flexibility | Adapts to changes gradually, with a focus on sustainability | Quickly adapts to evolving circumstances, prioritizing survival |
| Learning Culture | Embraces continuous learning and improvement | Learns from past experiences, quickly applies lessons learned |
If you are faced with a turnaround it means that you also must address the following challenges first:
- Systemic Issues (roots of failure, key points of fear)
- Political Issues (undue influencers, excused behaviors, entrenched battles, shadow IT)
- Embedded Dysfunctions (culture, tradition, beliefs, habits)
- Strategic Errors (or lack of a coherent strategy)
- Personnel Issues (talent gaps, morale issues, retention, and risk aversion)
If you can't transform the environment itself, nothing you do will be sustainable. When I have led turnarounds, I made it clear that I wasn’t coming to just make changes. I was coming to address the core issues that all change requires to be effective. And that takes a different mindset and management approach.
References
Image Credit: General Douglas MacArthur
Douglas MacArthur received 13 awards for bravery, including the Medal of Honor. Perhaps the most gifted wartime soldier America ever produced, he orchestrated remarkable victories in France, New Guinea, the Philippines, and Korea. He often led from the front, sharing the dangers of the battlefield with his men, which earned him accolades for bravery and the loyalty of his soldiers. His tenure was marked by the challenge of leading the Army during the Great Depression, a period of limited resources and low morale. Despite this, he advocated for a modern, mechanized army, foreseeing the changing nature of warfare.