CEO Behaviour for the CIOCEO Behaviour for the CIO

Peter Nevin

Executive General Manager, Business Processes

Sedgman Limited

CIO Summit

23 July 2009

Sedgman LimitedSedgman Limited

� Publicly listed (ASX code SDM)

� Leading provider of Minerals Processing

� Trading for 30 years +

� Revenue of $300m p.a. +

� Market capitalisation - approximately $160m

� Worldwide:

• Australia

• China

• Southern Africa

• South America.

AgendaAgenda

� Inconvenient Truth

� Types of CEOs (CIOs?)

� View from the top

� CEO Behaviour

� Two silver bullets

� Questions

An Inconvenient TruthAn Inconvenient Truth

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Manufacturing

SalesConsulting

Services

HR

STRATEGY

FINANCE

LEGAL

IT

Types of Types of CEOsCEOs

CIO Executive CouncilLeaders shaping the future of business

The FarmerThe Farmer

CIO Executive CouncilLeaders shaping the future of business

The HopperThe Hopper

CIO HopperCIO Hopper

Strategist/GrowerStrategist/Grower

CIO Executive CouncilLeaders shaping the future of business

View from the TopView from the Top

�Markets

�Suppliers

�Competitors

CIO Executive CouncilLeaders shaping the future of business

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CEO View of the CEO View of the

CompanyCompany

CIO Executive CouncilLeaders shaping the future of business

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View of the CIOView of the CIO

CEO BehaviourCEO Behaviour

OBVIOUS:

� Leadership

�Operational Focus

�Strategic

THE REALLY OBVIOUS:

What do they care about?

Elevating th

e argument from

Elevating th

e argument from

technology

technology

IT is seen as a strategic, competitive tool

Running the shop reliably

Understanding the power map of the

organisation

Leading business process and product innovation

Position IT and the CIO as agents of change.

"big picture" view of the organisations"big picture" view of the organisations"big picture" view of the organisations"big picture" view of the organisations

the ability to synthesize, calculated riskthe ability to synthesize, calculated riskthe ability to synthesize, calculated riskthe ability to synthesize, calculated risk----taking taking taking taking

Aligning IT with the business

Right communication style

Right communication style

Focus on achieving

effectiveness, not

efficiency, from IT

Institutionalize business values for IT

Manage IT as integral, not as adjunct, to the business

Build an executive team that includes the CIO

Make CEO a Customer

Make CEO a Customer

What Do you Sell?What Do you Sell?

OPERATIONS

SYSTEMS

RELIABILITY

Measures:

� Availability� Useability

DELIVERY

Measures:

� On time� On budget� On scope

LOW COST

Measures:

� Spend as % revenue� IT Staff/FTEs� TCOs

EXCELLENCE OFSERVICE

Measures:

� Internal customersatisfaction

� Company performance

BUSINESSIMPROVEMENT

Measures:

� Cost of businessoperation

� Speed of businessoperations

� Realisation of benefits

MARKET / PROFITIMPROVEMENT

Measures:

� Market share� Company profitability� Customer retention

CAPABILITY EFFICIENCY EFFECTIVNESS

EXTERNALCUSTOMER FOCUS

EXTERNALCUSTOMER FOCUS

OPERATIONS

SYSTEM

RELIABILITY

Measures:

� Availability� Useabil ity

DELIVERY

Measures:

� On time� On budget� On scope

LOW COST

Measures:

� Spend as % revenue� IT Staff/FTEs� TCOs

EXCELLENCE OF

SERVICE

Measures:

� Internal Customersatisfaction

� Company Performance

BUSINESSIMPROVEMENT

Measures:

� Cost of businessoperation

� Speed of businessoperations

� Realisation of benefits

MARKET / PROFITIMPROVEMENT

Measures:

� Market share

� Company profitability� Customer retention

CAPABILITY EFFICIENCY EFFECTIVNESS

External Customer FocusExternal Customer Focus

� All areas

� Know your Business!

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Bonus BulletBonus Bullet

LEADERSHIPLEADERSHIP

�Be self-aware

�Perception is reality

�Concentrate on strengths

�Find best people

� Make the CEO the Customer

� External Customer Focus

� LEADERSHIP

QUESTIONSQUESTIONS