““What CEOs Want From CIOs”What CEOs Want From CIOs”The CIO Executive Leadership RoundtableThe CIO Executive Leadership Roundtable

SIM Boston ChapterSIM Boston ChapterApril 16, 2009 April 16, 2009

Mark PolanskyMark PolanskySenior Client Partner & Managing Director Senior Client Partner & Managing Director

Information Technology Officers Center of ExpertiseInformation Technology Officers Center of ExpertiseKorn/Ferry InternationalKorn/Ferry International

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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

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Evolution of the IT Leadership Role

• 1950s – Tab Supervisor–Accounting automation–Electro-mechanical equipment, early computers–Reports to Accounting Manager

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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

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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

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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

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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

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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 – ????

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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

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“The 21st Century CIO Leadership Agenda”

Source: Korn/Ferry research

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

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

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

4. 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

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

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“The 21st Century CIO Leadership Agenda”

Source: Korn/Ferry research

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

7. Business Intelligence – Data modeling & warehousing, metrics, analytics, forecasting & modeling

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

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

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

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“The 21st Century CIO”

ENABLERENABLER DRIVERDRIVER

SUPPORTERSUPPORTER COST CUTTERCOST CUTTER

Strategic“competitive”

Tactical“operational”

Reactive“following”

Proactive“leading”

Present State of the IT Leadership Role

• 2008-2010 – Dealing with Global Recession– Operating charter

o Leadershipo Cost Managemento IT Governance & Risk Managemento Change & Innovation

– Success criteriao IT Effectivenesso Value Creationo 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 optimizationo Global business processes, standards & supporto 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

o Organizational restructuring & right-sizingo Financial restructuring – the 80/20 paradigm

– Cost reduction & operational optimizationo IT standards and processeso Systems consolidation and integrationo Alternative/optimum sourcing/outsourcingo IT operations: automation, virtualization, ITIL, COBITo 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”

ENABLERENABLER DRIVERDRIVER

SUPPORTERSUPPORTER COST CUTTERCOST CUTTER

Strategic“competitive”

Tactical“operational”

Reactive“following”

Proactive“leading”

Change & Innovation = Business TransformationChange & Innovation = Business Transformation

ProactiveStrategic

Products & Services Innovation

Products & Services Maintenance

IT Consolidation & Rationalization; Vendor Partnerships

IT Maintenance; Outsourcing

Reactive Strategic

Proactive Tactical

Reactive Tactical

GAME CHANGERGAME CHANGER

DRIVERDRIVER

ENABLERENABLER

COST CUTTERCOST CUTTER

SUPPORTERSUPPORTER

Business Transformation

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!