What is a vCIO? Should I engage my MSP to provide this service?
With the exponential growth in technology and risk across the business landscape, organisations have every reason to want top-tier help. No one wants to fall behind, be wasteful, or end up on the front page of the news for an avoidable breach. Yet a good Chief Information Officer (CIO) who understands business, technology, cyber, digital, governance (and the list goes on) can cost a pretty penny, not to mention be incredibly hard to find due to their high demand.
Enter the virtual, or fractional, CIO. This new field of specialists divide their time between a small handful of clients and offer an executive understanding and mastery of technology leadership, but without the cost that would usually be associated with finding a full-time equivalent. Virtual and fractional CIOs (henceforth just "vCIO") are typically people who have spent years, if not decades, leading large teams, managing substantial budgets, delivering complex projects, and engaging with stakeholders across all levels of the enterprise.
Partnering with a vCIO is a brilliant way for businesses to grow while minimising both cost and risk. If they do their research right, these organisations will end up with someone who has significant experience in tech leadership, and who continues to grow through exposure to new, challenging and exciting opportunities.
...not everyone working as a vCIO always has a CIO background...
There are two ways you can source a vCIO. The first is to engage someone independent. The second is to procure a vCIO service from a managed service provider (MSP). It's crucial in either case to note that not everyone working as a vCIO always has a CIO background, so make sure to meet prospective vCIOs whichever route you take. Now, the MSP pathway can often be the simplest. After all, most organisations already have brilliant managed service providers supporting some of their IT needs. However, it may not be the best option for all organisations. Why? Let’s step back and consider this from a different angle.
A full-time CIO in any organisation is a privileged individual staff member. They develop trust and respect, and are bound by a contract that states they must avoid conflicts of interest, not accept kickbacks from suppliers, act in the organisation’s best interests in all their dealings, and so on. So, should we expect the same from a vCIO? Absolutely we should!
...a vCIO in an MSP is not going to tell you to go to a competitor to buy a solution. They're going to recommend the products and services they know and are able to sell...
The problem is, going to an MSP that sells technology products and services to you, and asking them to also drive your organisation's entire technology strategy and innovation portfolio, creates the risk of a conflict of interest. A CIO in any organisation needs to be able to make recommendations to leadership that are solely in the best interest of their employer, and don't benefit them in any way on top of their existing remuneration. However, a vCIO in an MSP is not going to tell you to go to a competitor to buy a solution. They're going to recommend the products and services they know and are able to sell, and that means their business benefits financially from the strategic decisions they're telling you to make. Even if they subcontract skills in, or on-sell someone else's services, there is often still an additional margin involved. This means vCIOs at MSPs may be limited in the strategy and recommendations they are able to provide, yet profiting nonetheless, even though you're not getting the full breadth of solutions that should be available to you.
You need to consider how important it is that your vCIO be able to deliver a truly independent, unbiased opinion that encompasses solutions from the entire market. If you're going to engage with your managed service provider for a vCIO, be sure to ask them how they mitigate this conflict, and also make sure you spend time with the person who will be your vCIO. Don't just accept that from week to week, your vCIO may change – insist on the person who best suits your culture and understands your vision.
...consider how important it is that your vCIO be able to deliver a truly independent, unbiased opinion...
When it comes to MSPs, I've spent my career fostering relationships with the best of them – ones I can trust, and who aren't just constantly adding the latest buzzword to their list of capabilities simply to drum up business. As a fractional CIO, I rely on these partnerships to deliver great value to my customers, and I know they are always working as hard as they can for their clients.
So to wrap up, what is the ideal vCIO? In my mind, it is one that is independent and that has only the customer’s best interests in mind. Limited bias, no restraints on solutions, no kickbacks or margins – all they want to do is build their customers' businesses, and be there for the long-haul.
If you'd like to talk more about how we can help you with your own growth journey, please reach out to us!