But what if you could share the responsibility and the benefits of digital delivery with your peers in the C-suite? What if you could turn your IT budget into a franchise that enables business leaders to invest in and co-own technology solutions that align with their goals and needs?

This is the idea behind the franchise model, a new approach to digital delivery that Gartner recommends for CIOs in 2024. According to Gartner, the franchise model is based on three pillars: shared ownership, shared accountability and shared value.

Shared ownership means that CIOs and business leaders jointly decide on the technology investments that support their strategic objectives. They also share the costs and risks of these investments, as well as the access and control over the technology assets.

Shared accountability means that CIOs and business leaders work together to define and measure the outcomes and benefits of their technology investments. They also collaborate on the governance and management of these investments, ensuring that they comply with standards, policies and regulations.

Shared value means that CIOs and business leaders recognise and communicate the value of their technology investments to their stakeholders, customers and employees. They also leverage the synergies and economies of scale that result from sharing technology assets across the organisation.

The franchise model can help CIOs overcome some of the common barriers to digital delivery, such as:

• Limited budget and resources: By sharing the costs and risks of technology investments with business leaders, CIOs can increase their IT budget and optimise their resource allocation. They can also tap into the expertise and capabilities of their business partners, reducing the need for external vendors or consultants.
• Misaligned expectations and priorities: By involving business leaders in the decision-making and delivery process of technology investments, CIOs can ensure that they align with the business strategy and needs. They can also foster a common vision and language for technology across the organization, avoiding confusion or conflict.
• Low adoption and satisfaction: By demonstrating the value and benefits of technology investments to business leaders, CIOs can increase their buy-in and support. They can also encourage them to champion and promote the use of technology among their teams, customers and partners, enhancing user experience and satisfaction.

The franchise model is not a one-size-fits-all solution. It requires careful planning, communication and collaboration between CIOs and business leaders. It also requires a shift in mindset and culture, from a traditional IT-centric approach to a more business-oriented one.

To adopt the franchise model successfully, Gartner suggests some immediate steps for CIOs:

• Identify your potential franchisees: Analyze your current IT budget allocation and identify which business areas or functions have the most demand or potential for technology investments. Assess their readiness and willingness to participate in the franchise model, as well as their strategic alignment with your IT goals.
• Define your franchise offerings: Determine what types of technology solutions you can offer to your business partners as part of the franchise model. These could include platforms, services, applications or capabilities that address specific business problems or opportunities. Establish clear criteria and guidelines for selecting, prioritizing and evaluating these solutions.
• Negotiate your franchise agreements: Engage with your business partners to discuss and agree on the terms and conditions of your franchise agreements. These should include the scope, objectives, costs, benefits, risks, responsibilities, governance and metrics of your technology solutions. Document these agreements in a formal contract or memorandum of understanding.
• Deliver your franchise value: Execute your technology solutions according to your franchise agreements, ensuring that they meet or exceed your business partners’ expectations. Monitor and report on their performance and impact, using data and feedback to demonstrate their value. Celebrate and communicate your successes, as well as learn from your failures.

The franchise model is not a pie-in-the-sky idea. It is a practical and proven way to improve your digital delivery in 2024. By franchising your IT budget, you can not only increase your funding and resources but also strengthen your relationships and reputation with your peers in the C-suite.

As a CIO, you are not just a slice of the budget pie. You are a baker of delicious digital pies that everyone wants a piece of. So go ahead and franchise your IT budget.

Image credit: https://401kcalculator.org/