The New 'Digital Director' Corporate Board Role: Are You Ready?

Guest blog by Holly J. Morris

A “digital director” is a new kind of board member who provides support and oversight to a company’s digital strategies, and helps the company mitigate cyber risk. Companies are adding new directors with digital backgrounds in part because many existing board directors lack experience.

The early adopters of digital directors have been traditional, consumer-focused companies targeting young customers.   Some media and technology companies, private, growth-stage internet companies, firms with major cyber security risks, and companies looking to make huge investments in new technology have also begun adding digital directors. Early examples include American Express board recruited Ted Leonsis, the CEO of Groupon, in 2010 and Jeffrey Housenhold the CEO of Shutterfly, who joined Caesar’s Entertainment in 2011.

Now and going forward, as more companies formalize their digital strategies, and with the growing threat of cyber risk, C-Suite leaders and boards are engaging like never before in understanding the impact of the digital world on their growth and competitiveness. Demand for digital directors will probably increase significantly in the next few years, providing opportunities for prepared CIOs to serve in new, interesting and challenging assignments. Will you be ready?

CIOs are Not the First Choice for Digital Director

There are several professional profiles being considered for digital director roles, and the CIO profile is not at the top of the list. Business executives with digital experience are often the preferred profile. This includes E-commerce CEOs, CMOs with digital experience, technology product executives, media executives, and partner-level IT consultants. Marissa Mayer from Yahoo serves on the Wal-Mart board and Daniel Alegre from Google is on the Select Comfort board, for example.

I have seen data suggesting that, among the entire population of CIOs working today, only a small percentage have achieved the level of performance it takes to be a digital director. These high-performing executives are what I call “break-out” CIOs. They have overcome the typical CIO challenges and expanded their influence and impact into the broader business. They operate at the intersection of strategy, technology, and risk and help their boards connect the dots about technology and their digital strategies.   They often assume larger responsibilities, including P&L accountability. There is a short list of “break-out” CIOs who have made the leap to board service in large companies. Rob Carter from Federal Express serves on the Saks and First Horizon boards, and Patty Morrison at Cardinal Health serves on two boards: Splunk and Joann Fabrics, for example.

There are other factors that make it challenging for a CIO to be selected for a board. In general, board sizes are shrinking, and there are fewer spots to fill. Also, many boards recruit people they already know. If you don’t know a lot of board members or CEOs, your chances of being selected are diminished. Often, boards hire search firms only when they have a very unique profile in mind, a profile that most people do not fit. And, although most recruiters will only say this off-the-record, when boards are searching for new digital directors, they often also want gender and ethnic diversity in their candidates. This really lessens the chances for a whole group of qualified CIOs to compete.

Preparing for Your Digital Director Board Opportunity

The path to becoming a digital director is not necessarily straightforward. It will likely take a long time and demand effort for most of us. The good news is that the ways you can prepare are also great professional development activities that will help you grow and be better at your job.

Here are my top three tips on what to do to prepare:

Be a “break-out” CIO – As I’ve already mentioned, the CIOs with the best chances to join a board are top-performing executives who have broken out of the techie stereotype to become influential business leaders but also have a technical background. If you become a digital director candidate, when the board checks your references, they will ask your boss and peers about your effectiveness as a communicator, your ability to translate the technology issues and focus the board on what they really need to know, your ability to think strategically about the digital world, and your concrete contributions to delivering business growth through digital technology. They will ask how you’ve managed cyber security issues in your current role. You need to build a track record of those abilities as a CIO.

Go deeper into your cyber security knowledge - The fact that cyber security has become such a big issue for many companies presents an enormous opportunity for CIOs to make valuable contributions on a board. Boards are interested in CIOs who can confidently explain in business terms the technical details surrounding cyber security and help the non-technical board members assess cyber-related risks. But don’t overestimate what you know. The cyber world is changing fast. Keep up, dig in a little deeper than you do on some topics. Spend more time with your CISO, take a class, read more. To become a digital director, you need to be seen as a credible “go-to” person on cyber security.

Join a non-profit board - It’s obvious that non-profit boards offer a way to gain board experience. My specific advice is to engage in developing the organization’s digital strategy and/or cyber-security strategy. Use non-profit boards to learn other critical skills outside of IT too. For example, experience with the non-profit’s audit function, finance, executive compensation, or public relations are valuable additions to your list of qualifications.

There’s never been a better time for a CIO to advance into the boardroom as a digital director. All indications are that there will be more opportunities in the coming years. It only takes preparation and perseverance, and now is a great time to start.

Holly J. Morris is an experienced corporate board director, consultant, company executive and CIO. For the last 25 years, Holly’s career has spanned corporate boards, Fortune 500 global financial services organizations, local government and manufacturing. She currently serves on the board of NIIT-Technologies in New Delhi, India. Previously she served on the board of Highland Capital Brokerage in Birmingham, AL and the Royal Cameron Corporation in Cameron, TX. She is a frequent speaker on the topic of CIOs as digital directors. You can contact her at hjmorris@comcast.net.