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Korn/Ferry Human Capital Solutions

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  1. “What CEOs Want From CIOs”The CIO Executive Leadership RoundtableSIM Boston ChapterApril 16, 2009 Mark PolanskySenior Client Partner & Managing Director Information Technology Officers Center of ExpertiseKorn/Ferry International

  2. 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

  3. Evolution of the IT Leadership Role • 1950s – Tab Supervisor • Accounting automation • Electro-mechanical equipment, early computers • Reports to Accounting Manager 3

  4. 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

  5. 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


  6. 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

  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 • Enterprise integration, recentralization • Client/server, Internet, ERP systems • Reports to CEO/COO/President/GM - senior management team 7

  8. 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

  9. 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

  10. “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

  11. “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

  12. “The 21st Century CIO” Strategic “competitive” ENABLER DRIVER SUPPORTER COST CUTTER Tactical “operational” Proactive “leading” Reactive “following”

  13. 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

  14. 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

  15. 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

  16. 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

  17. 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

  18. “The 21st Century CIO” Strategic “competitive” ENABLER DRIVER SUPPORTER COST CUTTER Tactical “operational” Proactive “leading” Reactive “following”

  19. 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

  20. 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!