“What CEOs Want From CIOs”
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“What CEOs Want From CIOs” SIM Houston Chapter March 26, 2009 Mark Polansky Senior Client Partner & Managing Director Information Technology Officers Center of Expertise Korn/Ferry International. Korn/Ferry Human Capital Solutions. Executive Search

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“What CEOs Want From CIOs”SIM Houston ChapterMarch 26, 2009 Mark PolanskySenior Client Partner & Managing Director Information Technology Officers Center of ExpertiseKorn/Ferry International


Korn/Ferry Human Capital Solutions

  • Executive Search

    • Matrix of Industry/Sector & Functional Practices

    • IT Practice: CIOs, CTOs, CISOs, SVP/VPs

  • Futurestep

    • Recruiting & Staffing Planning

    • Project/Pipeline Recruiting & Staffing

    • Recruitment Process Outsourcing

  • Leadership and Talent Consulting

    • Organizational Development

    • Individual & Team Assessment

    • Competency-based Modeling

    • Executive Coaching & Development

    • Compensation Consulting


Evolution of the IT Leadership Role

  • 1950s – Tab Supervisor

    • Accounting automation

    • Electro-mechanical equipment, early computers

    • Reports to Accounting Manager

3


Evolution of the IT Leadership Role

  • 1950s – Tab Supervisor

  • 1960s – Data Processing Manager

    • Proprietary systems - accounting, payroll, sales

    • Batch mainframe computers

    • Reports to Accounting Manager or Controller

4


Evolution of the IT Leadership Role

  • 1950s – Tab Supervisor

  • 1960s – Data Processing Manager

  • 1970s – MIS Director

    • A full array of business applications systems

    • Online and database systems, minicomputers

    • Reports to Controller or Chief Financial Officer

5


Evolution of the IT Leadership Role

  • 1950s – Tab Supervisor

  • 1960s – Data Processing Manager

  • 1970s – MIS Director

  • 1980s – Vice President of Information Systems

    • Alignment of IT with business functions

    • PCs and Local Area Networks, decentralization

    • Reports to Chief Financial Officer

6


Evolution of the IT Leadership Role

  • 1950s – Tab Supervisor

  • 1960s – Data Processing Manager

  • 1970s – MIS Director

  • 1980s – Vice President of Information Systems

  • 1990s – SVP/EVP & Chief Information Officer

    • Enterprise integration, recentralization

    • Client/server, Internet, ERP systems

    • Reports to CEO/COO/President/GM - senior management team

7


Evolution of the IT Leadership Role

  • 1950s – Tab Supervisor

  • 1960s – Data Processing Manager

  • 1970s – MIS Director

  • 1980s – Vice President of Information Systems

  • 1990s – SVP/EVP & Chief Information Officer

  • 2000s – ????

8


The IT Leadership Role in the 21st Century

  • 2001-2002: End of the Technology Bubble

    • Dot-com implosion

    • Deep corporate IT cost cutting

    • Focus on tactical operations post-Y2K/ERP

  • 2003-2007: “The 21st Century CIO”

    • Comprehensive definition of the “C-level” IT role

    • Strategic alignment and governance

    • Process & operational optimization/ERP

    • Business intelligence and customer intimacy

    • Value creation

  • 2008-2010: Dealing with Global Recession

    • Cost management, modest budget & staff reduction

    • “21st Century CIO Agenda” still a mandate

9


“The 21st Century CIO Leadership Agenda”

Source: Korn/Ferry research

  • IT Strategy – Business strategy alignment, business case and projected return on investments, priorities versus resources

  • IT Governance – Portfolio management, IT investment funding and review process, performance measurement, project management (PMO), SDLC, processes, standards, procurement

  • IT Organization & Staffing – Centralized, decentralized, federal model, shared services; reporting relationships, FTEs, staff augmentation, on/near/off-shore, capability/maturity, training

  • Technology – Architecture; bleeding/leading edge or trailing; build or buy, suite or best-of-breed; infrastructure and networking insourced/outsourced, total cost of ownership (TCO), support

  • Technology Awareness – Board of Directors, senior and middle management, rank and file

10


“The 21st Century CIO Leadership Agenda”

Source: Korn/Ferry research

  • Corporate Governance – Compliance, disaster recovery, business continuity, security, privacy, intellectual property protection

  • Business Intelligence – Data modeling & warehousing, metrics, analytics, forecasting & modeling

  • ERP – Business integration, value chain, process improvement & innovation, change management, quality programs

  • Customer Care – Customer relationship management (CRM), contact centers, customer portals, B2B collaborative computing (EDI, VMI, CPFR)

  • Internet – e-business strategy, portals, web-enabled applications, telecommunications [Web 2.0]

11


“The 21st Century CIO”

Strategic

“competitive”

ENABLER

DRIVER

SUPPORTER

COST CUTTER

Tactical

“operational”

Proactive

“leading”

Reactive

“following”


Present State of the IT Leadership Role

  • 2008-2010 – Dealing with Global Recession

    • Operating charter

      • Leadership

      • Cost Management

      • IT Governance & Risk Management

      • Change & Innovation

    • Success criteria

      • IT Effectiveness

      • Value Creation

      • Transparency & Measurement

    • Upward mobility to operations and general management


What CEOs Want From CIOs

  • Leadership

    • Assertive leadership and responsible ownership

    • Enterprise/SBU-level business savvy and strategic skills

    • IT alignment, strategy, vision, inspiration and motivation

    • Communications, relationship & partnership skills

    • Global perspective and optimization

      • Global business processes, standards & support

      • Use of global resources – sourcing & production

    • Go beyond IT and the CIO’s comfort zone

    • Attract, develop & retain “best athletes” (The War for Talent)

    • Execution, execution, execution!

    • Create World Class IT/Business Functionality


What CEOs Want From CIOs

  • Cost Management

    • Do more with existing resources

      • Organizational restructuring & right-sizing

      • Financial restructuring – the 80/20 paradigm

    • Cost reduction & operational optimization

      • IT standards and processes

      • Systems consolidation and integration

      • Alternative/optimum sourcing/outsourcing

      • IT operations: automation, virtualization, ITIL, COBIT

      • Vendor contracts: consolidation & renegotiation

    • Potential Funding for Low Risk/High Return Initiatives


What CEOs Want From CIOs

  • Governance & Risk Management

    • IT standards, processes and controls

    • IT architecture for agility and growth/scalability

    • Quality programs - PMO, Six Sigma, CMM

    • Data security, privacy and retention

    • Systems and data protection - internal and external

    • Support for compliance and audit

    • Disaster Recovery and Business Continuity Planning

    • Protect the Enterprise and Position for Future Growth


What CEOs Want From CIOs

  • Value Creation - Drive the top and bottom lines

    • Improve revenue, margins, market share

    • Business intelligence, analytics and insights

    • BPO - enhanced productivity and competitive advantage

    • Customer intimacy, loyalty, segment marketing, etc.

    • Communities, markets & social networking - Web 2.0

    • Technological innovation

    • New products and services

    • New channels and markets

    • New business models

    • Change & Innovation


“The 21st Century CIO”

Strategic

“competitive”

ENABLER

DRIVER

SUPPORTER

COST CUTTER

Tactical

“operational”

Proactive

“leading”

Reactive

“following”


Change & Innovation = Business Transformation

Business Transformation

GAME CHANGER

Products & Services Innovation

ProactiveStrategic

DRIVER

Products & Services Maintenance

Reactive Strategic

ENABLER

IT Consolidation & Rationalization;

Vendor Partnerships

Proactive Tactical

COST CUTTER

IT Maintenance; Outsourcing

Reactive Tactical

SUPPORTER


Innovators & Game-Changers

  • American Airlines – SABRE, AAdvantage

  • Citibank – ATM Deployment

  • FedEx – Parcel Tracking

  • Toyota – Just-in-Time Manufacturing

  • Dell – Zero Days Inventory

  • Wal-Mart – Supply Chain, VMI, CPFR, RFID

  • Proctor & Gamble – BI & Consumer Communities

  • Amazon.com – Online Retailing

  • eBay – Online Auctions

  • Google – Search-based Advertising

  • Facebook, YouTube, Twitter, LinkedIn – Social Networking

  • You!


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