““What CEOs Want From CIOs”What CEOs Want From CIOs”SIM Houston ChapterSIM Houston Chapter

March 26, 2009 March 26, 2009

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

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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

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Evolution of the IT Leadership Role

• 1950s – Tab Supervisor–Accounting automation–Electro-mechanical equipment, early computers–Reports to Accounting Manager

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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

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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

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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

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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

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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 – ????

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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

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“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

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“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]

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“The 21st Century CIO”

ENABLERENABLER DRIVERDRIVER

SUPPORTERSUPPORTER COST CUTTERCOST CUTTER

Strategic“competitive”

Tactical“operational”

Reactive“following”

Proactive“leading”

Present State of the IT Leadership Role

• 2008-2010 – Dealing with Global Recession– Operating charter

o Leadershipo Cost Managemento IT Governance & Risk Managemento Change & Innovation

– Success criteriao IT Effectivenesso Value Creationo 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 optimizationo Global business processes, standards & supporto 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-sizingo Financial restructuring – the 80/20 paradigm

– Cost reduction & operational optimizationo IT standards and processeso Systems consolidation and integrationo Alternative/optimum sourcing/outsourcingo IT operations: automation, virtualization, ITIL, COBITo 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”

ENABLERENABLER DRIVERDRIVER

SUPPORTERSUPPORTER COST CUTTERCOST CUTTER

Strategic“competitive”

Tactical“operational”

Reactive“following”

Proactive“leading”

Change & Innovation = Business TransformationChange & Innovation = Business 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 Transformation

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!