The Chief Information OfficerAndrew GetzSarah TsigeCandace JamesNovember 6, 2006

Presentation OverviewObjectiveRole of the CIO Company background and CIO profileHome Decorators CollectionBoeingUMSLDemographicsIssuesTurnover Among CIOsConclusionsQuestionsReferences

ObjectiveTo understand the functions CIOs perform within organizations and explore attributes of effective CIOs

Does it Take a Psychopath to Make a Good CIO?By: Elizabeth MillardStudy by a team of researchers from Stanford University, Carnegie Mellon University and the University of Iowa.

Trying to find what personality traits are markers for success in high-stress, high-stakes jobs.

Based on previous research, they speculated that people with lesions on the area of the brain that affect emotions would perform better than those without brain damage.Source: http://www.cioinsight.com/article2/0,1540,1864608,00.asp

What did they find??Patients labeled as functional psychopaths outperformed those who are not psychopathsThe lack of fear gives them an advantage over those that are emotionally healthier.So.should CIOs create a degree of emotional detachment, basically making them into functional psychopaths????????Source: http://www.cioinsight.com/article2/0,1540,1864608,00.asp

Experts Answer.NO!

Most CIOs do not display non-emotional responses typical of near psychopaths according to Doug Berg, founder of techies.com and chief executive of HotGigs (talent firm specializing in IT staffing).

Over the past decade, the role of the CIO has changed tremendously, and thats driven change in what type of person is chosen to take on that job. The good ones have a balanced view of people, process and technology. They care about how the company meets its goals while embracingtechnology. They have to be emotionally invested to do that. BergSource: http://www.cioinsight.com/article2/0,1540,1864608,00.asp

Changing Role of the CIO

Moving from technical planning and implementation to strategic planning.Become involved in top levels of corporate planning and decision makingQualifications Involved in external and internal customer supportSkill set of CIO

Based on telephone survey of 340 CIOs from the U.S., UK, Germany, and France in June 1999Source: http://www.cio.com/executive/edit/kornferr.html

CIO TrendsCIO Perspective Video: Jim Tom on Strategic Planning

Role of the CIO"I've pretty much stepped back [from technical operations], and now I focus mostly on working with the business community, making sure I have a clear understanding of business processes and needs,"

IHenry Eckstein, CIO and VP at York Insurance Services Group

Overview of CIOs InterviewedRich Bradt September 28, 2006Home Decorators CollectionDirector of IT

Don Imholz October 27, 2006BoeingVP of Boeing IT Systems

Jim Tom October 30, 2006University of Missouri-St. LouisAssociate Vice Chancellor for IT

Company SizeFigures in Millions of Dollars

Chart1

16728754845

UMSL

HDC

Boeing

Sheet1

CompanyRevenue

UMSL167

HDC287

Boeing54845

Sheet1

UMSL

HDC

Boeing

Sheet2

Sheet3

Home Decorators Collection

Home Decorators CollectionDirect to consumer (catalog) companyMajority of merchandise is household furniture, rugs but also carry other itemsOver 450 employeesCurrently operate 7 retail stores with plans to open at least 15 a year for the next 3 yearsAcquired by Home Depot Direct on May 1, 2006

Home Decorators CollectionHow large is HDC?

HDC CustomerWomen, usually marriedBetween the ages of 35 and 64Savvy and price conscious, but affluentMedian household income of approximately $100,000

Rich BradtDirector of IT for Home Decorators CollectionEducational background in:MathematicsGeographyEngineering Management Information Systems15 Years if IT ExperienceInterview with Rich Bradt on Wednesday September 28, 2006

ProjectsMost SuccessfulInternetStart up of HomeDecorators.com web siteUse of Color on the website

Most TroublesomeInventory Forecasting SystemNeeds By Weeks

Effects of the AcquisitionBudget increaseLarger projectsMore Bureaucracy

Total Employees ~ 156,332Customers in 145 countriesManufacturing operations in U.S., Canada and Australia

Aerospace ProductsCommercial jetlinersMilitary aircraftRotorcraftMissilesRocket EnginesLaunch VehiclesElectronic & Defense SystemsAdvanced information & communication systems

Boeing Business GroupsBoeing Capital (Corporate)Commercial AirplaneIntegrated Defense SystemsPhantom WorksShared Services Boeing TechnologyHR & Administration

SchoolingBachelors: BA - UMSLMasters: Information Systems Mgmt WUExecutive MBA WUAdvanced through several positions in his careerSystems DevelopmentProject MgmtExec in Finance & ManufacturingInvolved in numerous activities

Don Imholz Vice President of Boeing IT Systems

ProjectsBoeing IT Sarbanes-Oxley Act (SOX) Initiative Collaboration SharepointTotal AccessUpdating your work informationCreating your personal profileViewing company training recordsEnrolling in health benefitsPay, benefits, and tax summaryGeneral information links

University of Missouri St. LouisAnnual 2005 budget of $167 millionCustomer CharacteristicsVery few classically traditional studentsMost students are employed full or part-timeCompanies wanting specialized courses for employees onsiteUMSL is Using technology to reach into corporations Jim TomInterview with Jim Tom on October 30, 2006

Dr. Jim TomVice Chancellor for Information Technology since January 2005Educational background:Undergraduate degree in PhysicsMasters in Systems and Computer EngineeringPhD in Engineering EconomicsWork ExperienceProgram AnalystEconomic StatisticianLarge Scale Economic Models10 years in ITMost recently Director of Networks at University of British Columbia, Canada

Current ProjectPeopleSoft ImplementationGoalsImproved access for studentsDesigned for student self-service Valuable information from other campusesSeparate staffFocus staff solely on projectCosting approximately $1.25 million for UMSL aloneBenefit from UM System expendituresMeeting expectations at Rolla and in limited implementations elsewhere

Demographics of CIOs

Source:Ellen Flanning 100 premier IT Leaders 2006. Computerworld 6 January 2006.Base:100 IT Leaders survey by Computerworld in June/July 2002

Average Age: 47 Years oldGender:

Average CIO CompensationSource: Edward Prewitt State of the CIO CIO Magazine June 2006. Base: 500 IT Leaders survey by CIO Magazine large = $1 billion or more in revenues medium = $100 million to $1billion small = $100 million or less

Job ExperienceOtherLogisticsManufacturingBusinessConsultingAdministrationEngineeringFinance/AccSalesMarketing71% IT7% Business (non-IT)7% Consulting3% Engineering3% Finance and Accounting2% Administration1% Logistics1% Marketing1% Sales3% OtherPrimary Job ExperienceJob Experience Other than ITSource: Edward Prewitt State of the CIO. CIO Magazine June 2006. Base: 500 IT Leaders survey by CIO Magazine

HierarchyWho the CIO reports to:Source: Edward Prewitt State of the CIO. CIO Magazine June 2006. Base: 500 IT Leaders survey by CIO Magazine

HDC Organization ChartHome Depot Corporate

Engineering, Operations & Technology | Information Technology

Boeing IT Leadership Team

Boeing Information TechnologyScott Griffin

CommunicationsDave Phillips

Human ResourcesPam Simpson

Vivian Moore

Ethics & Business ConductPam Garretson

LegalCraig Holman

Computing & Network OperationsRadha Radhakrishnan

Enterprise Architecture and IntegrationBarb Claitman

Engineering, Operations & Technology | Information Technology

Boeing Business Systems/ IDS Business PartnerDon Imholz

Business Systems and IDS Business Partners

Judy Lewis

Supply Chain and Program Mgmt SystemsTim Holt

IDS Mfg/QA Systems and Precision Engagement & Mobility Systems Business PartnerEllen Jackson

Network & Space Systems Business Partner Frank Tetnowski

HR SystemsCheryl Britton

Internal Services SystemsCurtis Banks

Personally Identifiable Information ProjectDick Metz

Chief ArchitectAshlynn Dawson

UMSL Organizational ChartChancellorJim KruegerVC Managerial & Tech Services (CFO)Jim TomProvost4 Direct Reports

Average IT InvestmentSmall Companies$6,762,700Medium Companies$40,809,200Large Companies$89,025,400Source:Edward Prewitt Sate of the CIO. CIO Magazine June 2006.Base:500 IT Leaders survey by CIO Magazine

large = $1billion or more in revenuesmedium = $100million to $1billionsmall = $100million or less

IT Investment Don ImholzConsistent with manufacturing/aerospace Industry Average ~ 4% of total Revenues

Jim TomAnnual IT Budget is about $10 MillionRoughly 5.9% of Budget

IT Department Comparison

24 Full-time IT employees

~ 9000 10,000 IT professionals~ 5000 direct to Don Imholz

~ 80 Full-time Employees

Top 10 Current IT Issues in 2006Security and Identity ManagementFunding ITAdministrative/ERP/Information SystemsDisaster Recovery/Business ContinuityFaculty Development, Support, and TrainingInfrastructureStrategic PlanningGovernance, Organization, and LeadershipE-Learning/Distributed Teaching and LearningWeb Systems and ServicesSource: http://www.educause.edu/2006SurveyResources/#faculty

3 Notable FindingsFirst time ever, Security and Identity Management has topped Funding IT as the number-one IT related issueTerrorist attacks

Disaster Recovery/Business Continuity only 2nd time on the listHurricane Katrina

Enterprise-Level Portals dropped off listIncreased vendor supplied ERPInformation portals have been implemented at numerous institutions

Source: http://www.educause.edu/2006SurveyResources/#faculty

How do CIOs Spend their TimeInteracting with Company ExecsMaking Strategic System DecisionsStrategic Business PlanningLeading ProjectsDesigning/Optimizing Business ProcessesManaging IT Staff and CrisesBudgetingLearning about TechnologiesSource:Edward Prewitt State of the CIO. CIO Magazine June 2006.Base:500 IT Leaders survey by CIO Magazine

How CIOs Spend their DayRichTalking to various peopleMeetings with department heads to see how IT can improve their business processesMeetings with other top managementTouching bases with VP of IT for Home Depot DirectMaking sure systems are runningDon Meetings with executives and direct reports Strategic Planning (33%)Operational Projects (33%)Miscellaneous Tasks (33%)

JimMeetings with directors and other executivesFirefightingStrategic Planning (15% -20%)

Everyday is different - Don ImholzNo Routine - Jim Tom

TenureAverage Tenure:4 Years, 11 Months for CIOs7 years for CEOs7Rich Bradt14 YearsStarted at the early stage of company development

Don Imholz31 Years23-24 in IT4 years in current position

Jim Tom2 Years

CIO (career is over) TurnoverVarying EstimatesReasons for TurnoverExamples

CIO TurnoverAverage turnover rate of 23.8% varying from 15% - 40%1How long have you been CIO?24% Less than 2 years35% Between 2-5 years31% Between 5-10 years9% More than 10 years

Hard to measure61994/1995 data2002/2003 dataBased press reportsSource: Edward Prewitt State of the CIO. CIO Magazine June 2006. Base: 500 IT Leaders survey by CIO Magazine

Reasons for TurnoverFix-it Artists1Increased movement within companies1Ford Motor Company2Replaces Jim Yost with Marvin AdamsYost on job for 18 months, 27 years at Ford moved onto be VP of Corporate StrategyHigh job demand3Business demands on IT outreach IT capabilities3Continual budget and spending justification1true business transformations dont happened without turmoil. 2

Additional ReasonsDefinition of success3Not in step with business interests3Rapid change in technology more so than in the past23Com2Merged 900 IT employees with e-commerce groupCIO David Starr replaced after only 15 months on the jobConsequence of e-commerce transformationHigher company turnover creates higher CIO turnover2CIOs generally are being asked to leave because the communication and the expectations that were established between IT groups and business groups have eroded. Beverly Lieberman, Halbrecht Lieberman Associates1

Cost of High TurnoverGreater short term focus6Emphasize what will look good for next position/employer6Contributes to IT inefficiencies6

Top 10 Management PrioritiesAlign IT and Business goals Business continuity/risk managementControl IT costsIT-enabled process improvementImprove Internal user satisfactionDevelop IT staff leadership/business skillsImprove project management disciplineEnsure privacy of customer and employee dataEnable or enhance knowledge management and leverage intellectual assetsEnsure regulatory complianceSource:Edward Prewitt State of the CIO. CIO Magazine June 2006.Base:500 IT Leaders survey by CIO Magazine

Barriers to Job EffectivenessOverwhelming backlog of requests and projectsInadequate budgetsShortage of time for strategic thinking and planningUnrealistic and unknown expectations from the businessLack of Technical skill sets and business knowledge within the IT departmentOverwhelming pace of technology changeLack of alignment between business goals and IT effortsDifficulty proving the value of IT

Source:Edward Prewitt State of the CIO. CIO Magazine June 2006.Base:500 IT Leaders survey by CIO Magazine

Biggest ChallengesRich Bradt:Making sure IT systems dont interfere or stop us from growing.

Don Imholz:Regulatory Compliance

Jim Tom:Keeping and recruiting competent IT professionals

What keeps CIOs awake at Night?

Top CIO concerns in 2006

1. Alignment of IT and business2. Developing and retaining IT talentCIO Perspective Video: Jim Tom on Keeping and Recruiting Good People3. Security and privacy issuesIf you sleep like a baby, you wake up crying every 2 hours Don Imholz

Information Week, by Marianne Kolbasuk McGee, September 18, 2006Source: http://www.informationweek.com/news/showArticle.jhtml?articleID=193000377&subSection=All+StoriesAccording to Survey by Society for information Management (SIM) which polled 139 CIOs

Personal Skills Most Pivotal for SuccessAbility to communicate effectivelyStrategic thinking and planningAbility to lead and motivate staffUnderstanding business processes and operationsUnderstanding business trends, and business strategyThorough knowledge of technology optionsNegotiation skillsTechnical proficiencySource:Edward Prewitt Sate of the CIO. CIO Magazine June 2006.Base:500 IT Leaders survey by CIO Magazine

Relative Importance of SkillsTwo most important skills in Richs position are business skills and supervisory (people) skills-70% Business-30% Supervisory/PeopleRich Bradt, Home Decorators CollectionCIOs must find a balance between 3 types of skills-Business-Technical-PeopleJim Tom, UMSL Have to have technology background to know what kind of questions to ask, but it is more important to excel in Business and LeadershipDon Imholz, Boeing

Best PracticesMaintaining good relationships with top managementGovern wiselyAssign direct reports to be business unit leadersCommunicate effectively with business leaders at every opportunityAdvertise your technology strategyMake IT user friendly for everyoneSource: Todd Datz Six Habits of Effective CIOs. CIO Magazine June 15, 2003.

Measuring Project SuccessWays to measure successScheduleBudgetUsefulnessValue to businessDon ImholzHad projects that were longer, more difficult and cost more money but had better benefits

How Do CIOs Measure Success?CIO Perspective Video: Jim Tom on Measuring Success

Questions

Works Cited(1) Alexander, Steve, As the door turns Computerworld, 1998; vol 32, 8, 1998, pp. 73(2) Preston, Robert, CEO, CIO Turnover Is Just Part of E-Transformation InternetWeek, Iss. 841, 2000, pp. 9(3) Shand, Dawne, Can this IT Department deliver? Computerworld, vol 35, 13, 2001, pp. 40(4) Cafasso, Rosemary, CIO Turnover Remains High Computerworld, vol 28, 36, 1994, pp. 20(5) Laberis, Bill, Cleaning House? Computerworld, vol 29, 4, 1995, pp.32(6) Strassmann, Paul A, The Cost of Short-Term CIOs Computerworld, vol 38,18, 2004, pp. 32(7) Byrnes, Nanette; Kiley, David; Crockett, Roger; Lowry, Tom; and McGregor, Jena, The Great CEO Exodus BusinessWeek Online http://www.businessweek.com/magazine/content/06_44/b4007086.htm, viewed on November 1, 2006

Because emotions play such a critical adaptive role in decision making

and are some CIOs already fitting this description of a psychopath???lack of emotion can be helpful in corporate decision-making, but with some people emotion plays a negative role. It can cause fear or anxiety, and prevent them from reacting in a way thats effective. Antoine Bechara professor of neurology at U of Iowa.

2. Even with high-stake decisions about headcount and layoffs, multi-year commitments to technology, and dependence on complex software, researchers and industry experts say no.

3. Many organizations will tell you that its very problematic to promote IT experts into management. Its a dilemma, b/c you cant change someons personality. You cant ask them to be an extrovert if theyre an introvert, just b/c theyre next in line ofr a mgmt job. Sometimes you have to tailor the position to the individual, not the other way around. - Adrian Furnham, professor in the dept of psychology at University College London and researcher on personality issues.

4. Doug Berg, Founder & CEO Doug has a long history in the recruiting and staffing industry. He started in IT as the Director of IT for the Minneapolis Institute of Arts. Doug then started his own IT consulting & staffing firm (Quantum Consulting) which he grew to over 75 consultants. In 1995 Doug sold his firm and founded techies.com which received over $100 million in venture capital and was voted the #1 IT career site by PC Week. Doug served as President and "Chief Techie." He createed not only the web strategy, but also assisted in rolling out techies.com's services to over 39 major markets.Doug's national connections, passion for the staffing industry, and web smarts have brought him to architect and deploy the HotGigs On-Demand Staffing Exchange which he hopes will become the "Staffing Supply Chain" for corporate America.Doug holds an honorary Doctorate Degree in Technology from Capella University, and is a national workforce expert.1. More tactical than broadly strategicPlanning and implementation of specific IT rather than long-term company strategy2. 3. Include both technical/engineering and a background in finance, marketing, and strategic planning4.5.6. Way companies use CIOCIOs relation to senior officersPerformance expectations and evaluation processPerformance incentives

after 7Chart in millionsWith headquarters in Seattle, The Boeing Company is the largest aerospace company in the world and the United States' leading exporter. The company's capabilities in aerospace include commercial jetliners, military aircraft, rotorcraft, electronic and defense systems, missiles, rocket engines, launch vehicles, and advanced information and communication systems. The company has an extensive global reach with customers in 145 countries and manufacturing operations throughout the United States, Canada and Australia.Connexion by Boeing business, the company has decided to exit the high-speed broadband communications connectivity market by the end of this year.1.Responsible for the design and support of all Business Systems and Integrated Defense Systems for Boeing.ActivitiesBoard of directors for the Center for the Application of ITIDS Expanded Leadership Team and IDS Enterprise Integration BoardAmerican Production and Inventory control Society and Advisory Board for the masters of Information Management Program for WU

2. Systems development, project management, program management, corporate information systems and data center management, director of Information management, director of business management and many executive positions in finance and manufacturing

SOX designed to ensure corporations create and maintain internal controls accurate financial information to investors. Regulatory ComplianceTotal Access: Previously Boeing have many separate information systems with individual usernames and passwordsNow, Web Single Sign On (WSS) interfaces with many of the systems and consolidates access under one username and password.Total access consolidates the links to many systems at one website, and with WSSO, eliminates the need to repeat the logon process as long as your web browser remains open.In comparison, UMSL employs about 80 full time employees all the way from database programmers to senior administrative personell.1. Institutions face a tenuous balance between the need to expand information access and the requirements to protect information assets from unauthorized and inappropriate useIncreased use of electronic informationElectronic break-ins and data theft2. Aligning funding and institutional prioritiesCreating fiscal flexibility to support innovationConstructing and facilitating a structured and transparent IT budget processMaking the CIO a member of the institutions cabinet and budget committee

70% of respondent institutions are in the process of implementing an ERP system

As you can see when we spoke with Jim Tom he answered the question in much the same way as our other CIOs. Jim told us that he spent the bulk of his day dealing with problems that arose on a daily basis. Beyond firefighting, Jim has weekly meetings with his direct reports and also with senior staff and spends about 15 to 20% of his time on strategic planning.In researching the turnover rate among CIOs we found that generally the average rate is 23.8% but estimates from recruiters and analysts range from 15 to 40%.

3Com: Transformed from Full-line enterprise networking manufacturer to a niche supplierJim Tom:Just not enough time in the dayKeep up with back end as new technology is implementedslide 44