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“What CEOs Want From CIOs”
The CIO Executive Leadership Roundtable
SIM Boston Chapter
April 16, 2009

Mark Polansky
Senior Client Partner & Managing Director
Information Technology Officers Center of Expertise
Korn/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

  • IT Strategy – Business strategy alignment, business case and projected return on investments, priorities versus resources
  • IT Governance – Portfolio management, IT investment funding and review process, performance measurement, project management (PMO), SDLC, processes, standards, procurement
  • IT Organization & Staffing – Centralized, decentralized, federal model, shared services; reporting relationships, FTEs, staff augmentation, on/near/off-shore, capability/maturity, training
  • 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
  • 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

  • Corporate Governance – Compliance, disaster recovery, business continuity, security, privacy, intellectual property protection
  • Business Intelligence – Data modeling & warehousing, metrics, analytics, forecasting & modeling
  • ERP – Business integration, value chain, process improvement & innovation, change management, quality programs
  • Customer Care – Customer relationship management (CRM), contact centers, customer portals, B2B collaborative computing (EDI, VMI, CPFR)
  • Internet – e-business strategy, portals, web-enabled applications, telecommunications [Web 2.0]

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“The 21st Century CIO”

ENABLER

DRIVER

SUPPORTER

COST CUTTER

Strategic

“competitive”

Tactical

“operational”

Reactive

“following”

Proactive

“leading”

Present State of the IT Leadership Role

  • 2008-2010 – Dealing with Global Recession
  • Operating charter
  • Leadership
  • Cost Management
  • IT Governance & Risk Management
  • Change & Innovation
  • Success criteria
  • IT Effectiveness
  • Value Creation
  • 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 optimization
  • Global business processes, standards & support
  • 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
  • Organizational restructuring & right-sizing
  • Financial restructuring – the 80/20 paradigm
  • Cost reduction & operational optimization
  • IT standards and processes
  • Systems consolidation and integration
  • Alternative/optimum sourcing/outsourcing
  • IT operations: automation, virtualization, ITIL, COBIT
  • 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”

ENABLER

DRIVER

SUPPORTER

COST CUTTER

Strategic

“competitive”

Tactical

“operational”

Reactive

“following”

Proactive

“leading”

Change & Innovation = Business Transformation

Proactive
Strategic

Products & Services Innovation

Products & Services
Maintenance

IT Consolidation & Rationalization;

Vendor Partnerships

IT Maintenance; Outsourcing

Reactive Strategic

Proactive Tactical

Reactive Tactical

GAME CHANGER

DRIVER

ENABLER

COST CUTTER

SUPPORTER

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!