Advisor independence

The vCIO conflict of interest: who does your advisor work for?

When the person advising on technology also works for the supplier, ask how recommendations and commercial interests are handled. Understand the arrangement before judging the advice.

In short

Review a vCIO's advice by examining responsibilities, compensation and the evidence behind recommendations. Ask about commercial interests, alternatives and the consequences of deferring a decision. An incentive can create a conflict to manage; it does not prove a recommendation is wrong. A count of cost reductions is not a reliable verdict on independence.

Titles such as vCIO, fractional CIO and technology adviser do not by themselves establish a person's responsibilities or independence. Read the engagement and ask who employs or pays the adviser.

Make commercial interests visible

  • Who pays for the advice, and who approves the roadmap?
  • Does compensation depend on products, projects or services you buy?
  • Which recommendations could create resale margin or further work?
  • How are conflicts disclosed and managed?

A direct answer helps you understand the arrangement. Disclosure does not by itself remove a conflict or establish independent judgment.

Examine recommendations, not just spending cuts

Select recommendations over a defined period and record their purpose, supporting evidence, alternatives, costs and expected outcomes. Include decisions to retain or retire systems as well as proposals to spend.

A lack of cost-reduction proposals does not establish bias. A growing business may need more capacity, and retaining an apparently unused item may have a documented reason. Equally, a saving is not automatically a sound decision if it transfers risk or leaves required work undone.

A roadmap review record
QuestionWhat to record
What problem does this address?The business need and supporting evidence.
What alternatives were considered?Options, including deferral where appropriate, and their consequences.
What commercial interest exists?Relevant resale, referral or implementation interests.
Who decides and follows up?Decision owner, agreed action and the evidence used to assess the result.

Questions to ask in the next review

  • What evidence supports this recommendation for our environment?
  • What changes if we defer it, retain the current arrangement or choose another approach?
  • Which assumptions and dependencies could change the expected benefit?
  • How will we check whether the intended outcome was achieved?

Agree reporting and disclosure expectations under the actual engagement. Do not infer dishonesty from a question that needs further investigation or from a commercial term that has not yet been explained.

When a separate review can help

If leadership needs an external view, first identify the decision and the evidence to examine. Discuss who has advised on the work already and any limits to the reviewer's independence.

The Actually Review examines evidence within an agreed scope. Actually Leadership describes technology leadership as a separate engagement; responsibilities and potential self-review questions should be explicit.

For wider delivery questions, use the provider-evaluation guide. The ten-question checklist includes a starting question about who reviews the work.

Common questions

What is a vCIO?
The term generally describes a virtual or shared chief information officer role. Actual responsibilities, authority and commercial arrangements vary, so review the engagement rather than relying on the title.
Is it wrong for an IT provider to supply strategic advice?
Not automatically. Establish the responsibilities and interests involved, examine the recommendations and agree how conflicts will be managed.
Does a lack of spending cuts prove biased advice?
No. Examine individual recommendations, business needs, alternatives and outcomes. Neither a saving nor an increase in spending is a verdict on advice quality.
Is a fractional CIO automatically independent?
No title establishes independence by itself. Ask who pays the person, what interests they hold and whether they are reviewing decisions they helped make.

If the roadmap needs to be read by someone with nothing to sell you, that is what an independent review is for.

Request an Independent Review

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