The 21st Century CIO

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The 21st Century CIO
Mark Polansky Managing Director Information
Technology Practice Korn/Ferry International Soci
ety for Information Management Philadelphia,
Pennsylvania February 1, 2005
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Korn/Ferry Human Capital Solutions

• Executive Search
• IT Practice CIOs, CTOs and direct reports
• Enterprise software services providers
• Mid-Level Search Futurestep
• Single Position
• Project Recruiting
• Managed Services
• Strategic Management Assessment
• Executive Coaching

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The 21st Century CIO - Overview

• The historically changing role of the CIO
• Current thinking by top CIOs regarding planning
  for and achieving success The 21st Century CIO
  Leadership Agenda
• The Top 10 critical success factors for CIOs in
  todays business environment
• An operating model for 21st Century CIOs
• Trends the future of the CIO position

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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 - 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 Changing Role of the CIO

• Source Korn/Ferry research in conjunction with
  The Financial Times, 1998
• Shift from technical to strategic focus
• Stratification of IT leadership
• New qualifications and accountabilities
• Repositioning the CIO in the organization
• Reorientation from internal customers to external
  customers
• Recruiting, motivation, retention and evaluation

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Creating the CIO Executive Success Cycle

• Source Korn/Ferry joint study with Gartner EXP,
  2001
• CIO Executive Leadership Agenda
• Assess what must be done, garner support, ensure
  necessary resources to succeed
• Deliver business value and enterprise performance
• Four Habits of Effective CIOs
• Shape demand
• Set expectations
• Deliver
• Lead

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The 21st Century CIO Leadership Agenda

• Source Korn/Ferry research, 2003
• IT Strategy Business strategy alignment,
  business case and projected return on
  investments, priorities versus resources.

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The 21st Century CIO Leadership Agenda

• Source Korn/Ferry research, 2003
• 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, IT processes, project
  management (PMO), standards, procurement.

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The 21st Century CIO Leadership Agenda

• Source Korn/Ferry research, 2003
• 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, IT processes, project
  management (PMO), standards, procurement.
• IT Organization Staffing Centralized,
  decentralized, federal model, shared services
  reporting relationships, FTEs, staff
  augmentation, on/near/off-shore,
  capability/maturity, training.

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The 21st Century CIO Leadership Agenda

• Source Korn/Ferry research, 2003
• 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, IT processes, project
  management (PMO), 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.

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The 21st Century CIO Leadership Agenda

• Source Korn/Ferry research, 2003
• 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, IT processes, project
  management (PMO), 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, 2003
• 6. Corporate Governance - Compliance reporting,
  business continuity, security, privacy,
  intellectual property protection

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The 21st Century CIO Leadership Agenda

• Source Korn/Ferry research, 2003
• 6. Corporate Governance - Compliance reporting,
  busines continuity, security, privacy,
  intellectual property protection.
• 7. Business Intelligence Metrics, analytics,
  data warehousing.

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The 21st Century CIO Leadership Agenda

• Source Korn/Ferry research, 2003
• 6. Corporate Governance - Compliance reporting,
  business continuity, security, privacy,
  intellectual property protection.
• 7. Business Intelligence Metrics, analytics,
  data warehousing.
• 8. ERP Business integration transformation,
  process improvement, value chain, quality program.

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The 21st Century CIO Leadership Agenda

• Source Korn/Ferry research, 2003
• 6. Corporate Governance - Compliance reporting,
  business continuity, security, privacy,
  intellectual property protection.
• 7. Business Intelligence Metrics, analytics,
  data warehousing.
• 8. ERP Business integration transformation,
  process improvement, value chain, quality
  program.
• 9. Customer Care Customer relationship
  management (CRM), contact centers, customer
  portals, B2B collaborative computing (CPFR).

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The 21st Century CIO Leadership Agenda

• Source Korn/Ferry research, 2003
• 6. Corporate Governance - Compliance reporting,
  business continuity, security, privacy,
  intellectual property protection.
• 7. Business Intelligence Metrics, analytics,
  data warehousing.
• 8. ERP Business integration transformation,
  process improvement, value chain, quality
  program.
• 9. Customer Care Customer relationship
  management (CRM), contact centers, customer
  portals, B2B collaborative computing (CPFR).
• 10. Internet e-business strategy, web-enabled
  applications, employee portal, telecommunications.

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The 21st Century CIO Leadership Agenda

• Source Korn/Ferry research, 2003
• IT Strategy
• IT Governance
• IT Organization Staffing
• Technology Architecture
• Technology Awareness
• Corporate Governance
• Business Intelligence
• ERP/Business Transformation
• Customer Care
• Internet e-Business

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The CIO Top 10

• Source Career Counsel, CIO Magazine
• 10. Hire, develop retain quality technology
  professionals
• 9. International or global experience
• 8. Knowledge of or experience in a specific
  industry
• 7. Ability to create and manage change
• 6. Communication skills
• 5. Management skills
• 4. Relationship skills
• 3. Business savvy
• 2. Expertise in applying and leveraging
  technology for the advantage of the enterprise
• 1. LEADERSHIP

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The 21st Century CIO
Strategic competitive
ENABLER
DRIVER
SUPPORTER
COST CUTTER
Tactical operational
Reactive following
Proactive leading
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Current Trends Affecting the CIO Position

• Continued evolution of IT and the CIO CTO roles
  
• Corporate CIOs - the federal model,
  recentralization
• Measuring the business value of IT
  investments/ROI
• Cost control and productivity optimize middle
  line
• Competitive advantage top line growth
• Governance, privacy, security, business
  continuity
• Business Intelligence
• Technology and business process outsourcing
• Ongoing development of the Internet and
  e-business
• Pervasive, ubiquitous technology, information
  access

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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 21st Century CIO The Future

• 2000s SVP/EVP Chief Information Officer
• Title has reached its plateau
• Operating charter
• Strategic focus
• Governance of IT - Office of the CIO
• Management of a composite of resources
• Success criteria
• Value creation
• IT effectiveness
• IT Oversight Committee - Board of Directors
• Upward mobility to general management

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The 21st Century CIOmark.polansky_at_kornferry.co
m