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The 21st Century CIOOctober 12, 2011

Harvey R. Koeppel, Executive DirectorCenter for CIO Leadership

2011 Information Systems Conference

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A global community to drive research, provide thought leadership and education to advance the CIO profession

Founded in 2007 by IBM

Peer community > 3,000 members

Diverse membership >70 countries >45 industries Small, medium and large business

segments Private and public sectors

Center for CIO Leadership Overview

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The New Normal

Key Business Drivers…

Global economic & competitive challenges

Role of government Mandate for transparency CEOs demanding innovative

business models Collaborative relationships /

partnerships Focus upon delighting the

customer Need for increased risk

management & compliance

Key Technology Drivers…

Broadband accessibility Mobile computing Consumerization of IT Social everything Cloud computing / ‘X’aaS Explosive growth in data

generation (including unstructured)

Data-driven versus business process-driven

Real-time business analytics

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The CEO Perspective

CEOs see technology as a leading external factor driving the future of their organizations…

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Source: IBM 2010 CEO Study

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A Mandate for Change

Historically, IT has created business value through cost takeout

Business models are beginning to show IT value to the revenue side

IT is recognized as increasingly important as a major driver of differentiation and competitive advantage

IT investments are accelerating

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And still there is no widely accepted normative organizational theory of IT growth and management.

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Enterprise Stages Modelof IT Growth & Management

Launch Acceleration Refinement Integration

Bu

sin

ess

Val

ue

Rea

liza

tio

nF

rom

IT

In

vest

men

ts OrganizationalLearning Curve

Business value realization from IT investments is constrained by an organizational learning curve (readiness and ability to change)…

Time

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The CIO Journey

Management Leadership

Operational Efficiency & Expense Reduction

Innovation & Growth

Incremental Process Improvement

Business Strategy & Process

Reporting Relationship Management & Communication

Technology Management Business Management

Risk Avoidance Risk Management & Compliance

From IT Cost Center Manager… To Business-Savvy CIO…

CIOs have an opportunity to drive organizational readiness and lead change thatsignificantly reduces the time to business value realization from IT investments…

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Business-Savvy CIOCompetency Model

Competency Skills Required

Leadership Participates in clearly articulating the vision and mobilizes the organization to take action and effect changeActively seeks and responds to external customers’ needs and insights to drive business and technology strategyCoaches and develops talent within the organizationSeeks to develop business-oriented skill sets throughout the IT organization

Innovation & Growth

Promotes the creative use of existing and emerging technologies to create opportunities for business growth and improvementCollaborates with the executive team and external partners to drive innovation in the businessBuilds an innovation capability for the business Links innovation to business performance outcomesActively develops a culture of innovation

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Competency Skills Required

Business Strategy & Process

Understands and acts on the key business issues and external forces influencing the company’s growth and successThinks strategically to create growth, improve financial performance and gain competitive advantageHas an end-to-end view of value creation on behalf of customers, shareholders and employeesPlays an active contributing role in overall strategy formulationEffectively brings together global resources (products, people, processes, services, solutions, and external suppliers) and builds collaboration and teamwork to execute on the strategyKnows the key business performance measures driving the organization

Relationship Management & Communication

Inspires and builds trust through the organizationDemonstrates superior relationship management and influencing skills within all levels of the organization and with external networksProvides a powerful two-way communication channel on the business issues within the C-suite and throughout the organizationIs able to clearly communicate the business value of technology to the executive team and the rest of the business

Business-Savvy CIOCompetency Model (continued)

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Competency Skills Required

Business Management

Puts in place an effective strategic governance model Displays a command of corporate finance principles and a basic understanding of financial analysisHas influence on the executive team beyond functional capabilities and accountabilitiesIs able to clearly define and measure the business value of technology investment in the context of the enterprise

Risk Management & Compliance

Understands the broader elements of risk management-technology, operations and enterprise riskCommunicates effectively about risk and risk toleranceCreates a culture that is risk aware, not risk aversePlays a proactive role in leading the enterprise to manage risk as a business opportunity

Business-Savvy CIOCompetency Model (continued)

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Proposed Approach

Business-Savvy CIOCompetency Model

+

Enterprise Stages Modelof IT Growth & Management

=

21st Century Stages Modelof CIO Leadership

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21st Century Stages Modelof CIO Leadership

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Enterprise Stages of IT Growth Management

Launch Acceleration Refinement Integration

Leadership SkillsRequired

SkillsRequired

SkillsRequired

SkillsRequired

Innovation & Growth SkillsRequired

SkillsRequired

SkillsRequired

SkillsRequired

Business Strategy& Process

SkillsRequired

SkillsRequired

SkillsRequired

SkillsRequired

Relationship Management & Communication

SkillsRequired

SkillsRequired

SkillsRequired

SkillsRequired

Business Management SkillsRequired

SkillsRequired

SkillsRequired

SkillsRequired

Risk Management& Compliance

SkillsRequired

SkillsRequired

SkillsRequired

SkillsRequired

UnderstandBusiness Value

ArticulateBusiness Value

EnhanceBusiness Value

LeadValue Creation

CIO

Co

mp

eten

cies

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Stages Model Application

1. Diagnostic Phase• CIO / Enterprise Assessment• Value Opportunity Identification

2. Prescriptive Phase• CIO Action Definition• Enterprise Action Definition• Integrated Plan Development

3. Execution / Value Creation Phase• Actions Taken and Outcomes Created• Outcomes Reviewed and Evaluated• Value Measured and Articulated

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Questions for Discussion

Model Approach:

Does the overall stages model resonate with you as a tool to define and measure CIO professional advancement?

Is the model framework sufficiently robust to cover the broad range of CIO / enterprise contexts:

Small, medium and large enterprises? Local, regional, national, international and global enterprises? Private, public sector? Centralized, de-centralized, federated IT governance models?

Does a blended academic / practitioner team approach seem like a good one? Can you suggest enhancements or alternative approaches?

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Questions for Discussion

Model Application:

Would you consider applying this model to your own professional advancement?

What type of diagnostic approach makes most sense to continue the design and deployment of the model

Self-assessment 180°(peer) review 360°(supervisor, peer and subordinate) review Other?

What role would your CEO play in this approach and how do you recommend we consider a rollout that would most resonate with your C-suite?

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Continue the Conversation

For more information visit our site:

http://www.cioleadershipcenter.com

follow us on Twitter:

@CIOCenter

or contact:

Harvey R. KoeppelExecutive Directorhrkoeppel@cioleadershipcenter.com