““What CEOs Want from CIOs”What CEOs Want from CIOs”

Society for Information ManagementSociety for Information ManagementFairfield/Westchester Chapter Fairfield/Westchester Chapter

2008 CIO Executive Leadership Summit2008 CIO Executive Leadership SummitOctober 28, 2008October 28, 2008

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

Executive Search Matrix of Industry/Sector & Functional Practices IT Practice: CIOs, CTOs, CISOs, SVP/VPs

Futurestep – RPO Project/Pipeline Recruiting Managed Services/Recruitment Process Outsourcing

Leadership and Talent Consulting Management Assessment - Decision Dynamics Competency-based Modeling - Lominger International Executive Coaching & Development - LeaderSource Organizational Development - Lore International Compensation Consulting - ECA

Korn/Ferry Human Capital SolutionsKorn/Ferry Human Capital Solutions

The historically changing role of the CIO

“The 21st Century CIO Leadership Agenda”

An operating model for 21st Century CIOs

A new model for CIO leadership

What CEOs want from CIOs

Innovators & Game-Changers

Overview: “IT Leadership, Change & Innovation”Overview: “IT Leadership, Change & Innovation”

Evolution of the IT Leadership RoleEvolution 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 – ????

““The 21st Century CIO Leadership Agenda”The 21st Century CIO Leadership Agenda”

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

Source: Korn/Ferry research

““The 21st Century CIO Leadership Agenda”The 21st Century CIO Leadership Agenda”

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]

Source: Korn/Ferry research

““The 21st Century CIO”The 21st Century CIO”

ENABLERENABLER DRIVERDRIVER

SUPPORTERSUPPORTER COST CUTTERCOST CUTTER

Strategic“competitive”

Tactical“operational”

Reactive“following”

Proactive“leading”

Evolution of the IT Leadership RoleEvolution 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 – ????

The Evolving Role of the CIOThe Evolving Role of the CIO

2009 – SVP/EVP & Chief Information Officer

Title has reached its plateau; reporting structure Operating charter

Leadership IT Governance Cost Management Change & Innovation

Success criteria IT Effectiveness Value Creation

Upward mobility to operations and general management

What CEOs want from CIOsWhat CEOs want from CIOs

Leadership

Enterprise/SBU-level business and strategic skills IT strategy, vision, inspiration and motivation Global multi-site perspective & experience

Use of global resources Support for worldwide business locations

Communications & relationship skills Internal and external

Attract, hire & retain “best athletes” (The War for Talent) Execution, execution, execution Agent of change and transformation

What CEOs want from CIOsWhat CEOs want from CIOs

IT Governance & Risk Management

IT architecture for agility and growth/scalability

IT standards, processes, change management, etc.

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

What CEOs want from CIOsWhat CEOs want from CIOs

IT Cost Management & Effectiveness

Do more with existing resources & near-constant budget Organizational restructuring Financial restructuring

Operational cost reduction & optimization Integration, consolidation, virtualization Alternative sourcing/outsourcing Data/Network Ops Center - automation, ITIL, COBIT Vendor contracts

IT investment available for low risk/high return initiatives

What CEOs want from CIOsWhat CEOs want from CIOs

Value Creation

Optimize the middle line – manage costs & expenses Do more with existing resources & budget

Drive the top line – revenue, margin & market share Process optimization for competitive advantage – ERP CRM & communities/talk with customers - “Web 2.0” Business intelligence and analytics New products and services New markets and channels New business models

Bottom line results

What CEOs want from CIOsWhat CEOs want from CIOs

Value Creation

Optimize the middle line – manage costs & expenses Do more with existing resources & budget

Drive the top line – revenue, margin & market share Process optimization for competitive advantage - ERP CRM & communities/talk with customers - “Web 2.0” Business intelligence and analytics New products and services New markets and business channels New business models

Bottom line results

Change and Innovation

““The 21st Century CIO”The 21st Century CIO”

ENABLERENABLER DRIVERDRIVER

SUPPORTERSUPPORTER COST CUTTERCOST CUTTER

Strategic“competitive”

Tactical“operational”

Reactive“following”

Proactive“leading”

Change & Innovation = TransformationChange & Innovation = 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 Model Transformation

Innovators & Game-ChangersInnovators & Game-Changers

American Airlines – SABRE Reservation System; AAdvantage

Citibank – ATM deployment

FedEx – Parcel Tracking

Toyota – Just-in-Time Manufacturing

Harrah’s – Total Rewards Program

Dell – Zero Days Inventory

Wal-Mart – Supply Chain, VMI, CPFR, RFID

Proctor & Gamble – Consumer Community & Business Intelligence

You!