A new study co-authored by Associate Professor Surinder Kahai from Binghamton University’s School of Management suggests an effective way to improve collaboration between IT teams and employees from other business functions such as marketing and finance. In an era where technology plays a central role in organizational success, the study explores the critical need for bridging the gap between IT and business staff to foster more effective teamwork and alignment with business goals.

The study emphasizes the pivotal role of the Chief Information Officer (CIO) in facilitating alignment between IT and business staff. According to Kahai, a common challenge faced by organizations is the siloed nature of different departments. IT staff and business employees often operate with a limited understanding of each other’s functions, which can create barriers to collaboration.

Kahai argues that CIOs can overcome these challenges by setting up mechanisms that promote cross-department learning and understanding. By encouraging business staff to grasp key aspects of IT and vice versa, CIOs can drive mutual understanding, which ultimately leads to better collaboration and efficiency.

“People tend to work within their own silos, seeing problems in their own areas as more critical,” Kahai noted. “A smart CIO recognizes that you have to set up mechanisms for business people to better understand IT and for the IT staff to better understand aspects of business.”

The research, which involved data from 68 organizations, also examined how leadership behaviors influence the alignment between IT and business teams. The study revealed that CIOs can be most effective when they combine two leadership styles: transformational leadership and transactional leadership.

Transformational leadership is about inspiring employees to achieve a shared vision, while transactional leadership focuses on achieving specific performance outcomes through rewards or consequences. Kahai and his colleagues found that both approaches are essential in fostering alignment. A purely tactical or goal-driven approach isn’t enough to achieve meaningful collaboration. Instead, combining the two leadership styles enables CIOs to inspire their teams while ensuring that objectives are met.

“The combination of transformational and transactional leadership enables CIOs to empower their teams,” the study states. “High levels of both are needed to reinforce actions that facilitate IT-business alignment.”

Another key insight from the study is the importance of integrating domain-specific knowledge with shared knowledge across departments. The study highlighted that while IT and business employees must retain their expertise in their respective areas, they should also have enough common knowledge to understand the broader objectives of the organization.

This knowledge integration encourages employees to work more cohesively, using their individual expertise to contribute to shared goals. The study found that aligning business and IT functions through mutual understanding of each other’s roles creates a collaborative environment that drives long-term success.

The study concludes that leadership is central to overcoming the alignment challenges between IT and business teams. Kahai explained that while employees may be reluctant to drive change on their own, a CIO can create the necessary structure and support to foster a culture of collaboration and knowledge sharing.