3/21/2012 MANAGEMENT, LEADERSHIP, AND THE ROLES OF THE CIO Ephraim R.2bbMcLean Regents’ Professor Smith Eminent Scholar’s Chair Chair, CIS Department Georgia State University Atlanta, Georgia © 2012 MANAGEMENT VS. LEADERSHIP Management is about coping with complexity through planning and budgeting, organizing and staffing, controlling and problem solving. Leadership is about coping with change through setting a direction, aligning people to a vision of the future, and empowering and motivating them to meet the challenges created by this vision. Source: J.P. Kotter, Harvard Business Review, 1990 1 3/21/2012 AN EMERGING MODEL OF I/S LEADERSHIP • • • What is leadership? The successful exercise of power to achieve organizational goals. What is power? The capacity to exert influence. Sources of power - Organizational or positional Expertise Personal KEY COMPONENTS OF THE I/S LEADERSHIP MODEL • Types of Leadership - Transactional – aimed at producing stability and efficiency - Transformational – aimed at producing innovation and effectiveness • The Business Climate - Stable, static - Turbulent, dynamic • Focus of Attention - Technology and the I/S function - The business as a whole 2 3/21/2012 I/S LEADERSHIP MODEL FOCUS Efficiency Stable, Static Technology and the I/S function The Business Transactional Technologist Enabler BUSINESS DEMANDS Dynamic, Turbulent (managing complexity) TYPES OF LEADERSHIP Innovator Strategist Transformational (instituting change) Effectiveness I/S LEADERSHIP MODEL • The technologist uses technical expertise to − develop and maintain cost-effective information systems; − advises business managers regarding matters relating to information technology; − stays abreast of emerging technological developments; and − projects their potential impact on the I/S function and on the business. • The enabler works closely with the user community to − help them maximize the business uses of their present information systems capabilities; − networks and communicates with users to understand their present and future IT needs; and − acts as their advocate within the I/S organization. 3 3/21/2012 I/S LEADERSHIP MODEL • The innovator − strives for leading-edge IT processes by re-engineering existing systems; − updating existing technology; − re-tooling the I/S staff; and − creating an environment for experimentation and innovation. • The strategist − serves as the boundary-spanner between the I/S function and business strategists − to ensure that the business is aware of the strategic opportunities made possible through IT, and − that the I/S organization is ready to provide support and leadership for new business initiatives. I/S LEADERSHIP MODEL FOCUS Technology and the I/S function Stable, Static Transactional Technologist “CTO” BUSINESS DEMANDS Dynamic, Turbulent The Business Enabler “Partnering with Line Management” (managing complexity) TYPES OF LEADERSHIP Innovator “Re‐engineering the I/S Function” Strategist “Competitive Advantage” Transformational (instituting change) 4 3/21/2012 I/S LEADERSHIP MODEL Question: Does the progression through the roles, as outlined in the previous chart, demand that the CIO of the future must start as technologist, then move to enabler, then to innovator, and finally to strategist? No. It is possible to start in any one of these roles; but without mastery of the earlier roles, it is critical that the roles for which the new CIO has no experience be filled by members of his or her team who do have this expertise. KEY FEATURES AND IMPLICATIONS OF THE I/S LEADERSHIP MODEL • Organizations are experiencing increasingly more turbulent environments while, at the same time, trying to maintain some measure of stability. • I/S leaders must master both transactional (complexity) and transformational (change) leadership to meet their organizations’ need for both order and innovation. • I/S leaders must become ambidextrous; equally adept at innovation – “exploration” – and efficiency – “exploitation” 5 3/21/2012 KEY FEATURES AND IMPLICATIONS OF THE I/S LEADERSHIP MODEL Implications for the technologist . . . Lesson learned in the mainframe era are no longer sufficient. SaaS, the Cloud, agile development, mobile technologies, social media – all demand mastery if the organization is to be ready for the opportunities that these technologies promise. Failure of the CIO to master them, or to build a team that does, will leave the organization “blind-sided” by the competition that is able to exploit these new technological developments. KEY FEATURES AND IMPLICATIONS OF THE I/S LEADERSHIP MODEL Implications for the enabler . . . In this role, the CIO must provide demonstrated business value through the use of current IT systems for improved business efficiency, reduce costs, enhanced revenues, etc. To accomplish this, a strong partnership with the user community and management is essential – but good relations alone are not sufficient; they must be coupled with a strong record of delivering quality IT services. The CIO needs to master “T Leadership.” The top of the “T” represents breadth – a broad understanding of business; the leg of the “T” is depth – a deep mastery of information technology. 6 3/21/2012 KEY FEATURES AND IMPLICATIONS OF THE I/S LEADERSHIP MODEL Implications for the enabler . . . Failure to master this role can create a serious credibility gap – confrontation will replace cooperation. Disputes will escalate and problem resolution will become increasingly more difficult to achieve. Without a strong business partnership and high levels of service, users may choose to bypass the IT organization, attempting to “go it alone” and acquiring their own systems. At the limit, they may demand the outsourcing of the entire IT organization! KEY FEATURES AND IMPLICATIONS OF THE I/S LEADERSHIP MODEL Implications for the innovator . . . Some suggest that “CIO” should stand for “Chief Innovation Officer.” In this role, the CIO needs to create a “learning organization,” where innovation can thrive. This innovation can be stimulated in at least three ways: • One, by building on a strong foundation of expertise in current and emerging technologies, coupled with an understanding of their application to business. • Two, by creating a climate for innovation through a shared vision; encouraging experimentation and team learning. • Three, by fostering the early adoption of technology; becoming “pioneers” and “early adopters.” 7 3/21/2012 KEY FEATURES AND IMPLICATIONS OF THE I/S LEADERSHIP MODEL Implications for the innovator . . . In a slow-changing or fairly stable environment, lack of creativity and innovation may go unnoticed for awhile without serious consequences – but this is the exception, not the rule. For most organizations, the failure to innovate will begin to show up in a loss of market share, an inability to be competitive, followed by stagnation and eventual obsolescence. “Lead, follow, or be left behind,” is the watchword here. KEY FEATURES AND IMPLICATIONS OF THE I/S LEADERSHIP MODEL Implications for the strategist . . . Here the CIO has two main challenges, • first, to ensure that the IT organization is aligned with, and is playing a key role in, the future of the business; and • second, that the IT organization is providing the systems, the technologies, and the vision necessary for the business to pursue this future. “Information systems for competitive advantage” may be an overworked, even trite, phrase; but in companies where CIOs are exercising strong I/S leadership, their success in the role of strategist is evident – and their companies are achieving strategic benefits. 8 3/21/2012 KEY FEATURES AND IMPLICATIONS OF THE I/S LEADERSHIP MODEL Implications for the strategist . . . As with the innovator’s role, failure in the strategist’s role may go unnoticed for awhile. Indeed, the very success of the CIO in transactional leadership – efficient, well‐ functioning, cost‐effective IT systems – may blind top management as to the need for transformational IT leadership; “we’re doing fine, they say.” “Not knowing what you don’t know” can hurt you; and without a CIO who can play this strategist role, companies will be unaware of missed opportunities. KEY FEATURES AND IMPLICATIONS OF THE I/S LEADERSHIP MODEL In conclusion, • Even though the four I/S leadership roles – technologist, enabler, innovator, and strategist – build on each other, no one role can be neglected. • They must also both support the business – a reactive role – and help shape the business strategy – a proactive role. • These conflicting role demands are difficult for any one person to master. Also, even if it were possible to master them all, there is not enough time to perform them all. Thus a team approach, with complementary skills, may to be required. 9 3/21/2012 I/S LEADERSHIP In summary, I/S leadership requires . . . • Maintaining a balance among the roles, • Developing a team approach, and • Mastering the challenge of meeting the company’s business needs now – and for the future. 10