“What CEOs Want From CIOs”
The CIO Executive Leadership Roundtable
SIM Boston Chapter
April 16, 2009
Mark Polansky
Senior Client Partner & Managing Director
Information Technology Officers Center of Expertise
Korn/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
2
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
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
10
“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]
11
“The 21st Century CIO”
Strategic
“competitive”
ENABLER
DRIVER
SUPPORTER
COST CUTTER
Tactical
“operational”
Proactive
“leading”
Reactive
“following”
12
Present State of the IT Leadership Role
• 2008-2010 – Dealing with Global Recession
– Operating charter
o Leadership
o Cost Management
o IT Governance & Risk Management
o Change & Innovation
– Success criteria
o IT Effectiveness
o Value Creation
o 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
o Global business processes, standards & support
o 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-sizing
o Financial restructuring – the 80/20 paradigm
– Cost reduction & operational optimization
o IT standards and processes
o Systems consolidation and integration
o Alternative/optimum sourcing/outsourcing
o IT operations: automation, virtualization, ITIL, COBIT
o 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”
Reactive
“following”
Proactive
“leading”
Change & Innovation = Business Transformation
Business Transformation
GAME CHANGER
DRIVER
Proactive
Strategic
Reactive Strategic
Products & Services
Innovation
Products & Services
Maintenance
ENABLER
Proactive Tactical
IT Consolidation &
Rationalization;
Vendor Partnerships
Reactive Tactical
IT Maintenance;
Outsourcing
COST CUTTER
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!