14th CIO Workshop

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14th CIO Workshop
CEO IT Survey Findings

• July 27th, 2001

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Agenda
The CEO IT Survey The Singapore Tribe Has
Spoken What Other Tribes Had Said
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Agenda

• The CEO IT Survey
• Objectives
• Survey Administration
• Survey Demographics
• The Singapore Tribe Has Spoken
• What Other Tribes Had Said

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The CEO IT Survey centers on the CIO Role and IT
Practices
Objectives
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The survey was conducted for a period of
approximately two months
Survey Administration
Start Date June 1st End Date July 25th Survey
Sample 80 CEOs in Singapore Responses Received
31 Response Rate 39 Powered By
JustLogin.com
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In all, 13 industries were represented in the
survey sample
Survey Demographics
Number of Companies
of Total
Industry
Electronics High Tech Manufacturing Transport Fi
nancial Business Services Government Telecommuni
cations Commerce Others Energy Health
Care Construction Media Entertainment Social
Hospitality Services Total
26
8
13
4
13
4
10
3
10
3
10
3
6
2
6
2
3
1
1
3
0
0
0
0
0
0
31
100
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which included organizations of various types
Survey Demographics
Corporate Profile of Survey Respondents
Others
Statutory Board/ Government Body
3.5
23.5
SME
10
Foreign MNC
36.5
16.5
Large Domestic Enterprise
10
Local MNC
8

• The CEO IT Survey
• The Singapore Tribe Has Spoken
• Key Findings
• The CIO Status
• The Role of the CIO
• The CIO Profile
• IT Management Practices
• What Other Tribes Had Said

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While our survey echoed certain findings of past
research, it also presented interesting new
findings
Survey Response Findings Key Findings
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Survey Response Findings The CIO Status
In evaluating the general standing of CIOs in
their organizations, we posed CEOs with the
following questions
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The survey results indicate that the status of
the CIO is rising with a larger group reporting
to the CEO as a member of the senior team
Survey Response Findings The CIO Status
Source CSC Index Research and Advisory
Services, Foundation Report 109 New IS Leaders,
1997 Survey Results Do you agree that the
CIO should report directly to the CEO?-
Strongly Agree responses
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CIOs today are more influential as they enjoy a
more visible executive role
Survey Response Findings The CIO Status
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The majority of CIO equivalent job roles have
also adopted the designation of Chief
Information Officer
Survey Response Findings The CIO Status
CIO Equivalent Job Designations
Director of Information Systems
19.5
Chief Technology Officer
16
Chief Information Officer
3
61.5
Others
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though other designations have surfaced with
the increased responsibilities associated with
the CIO role
Survey Response Findings The CIO Status
Source Harvard Business Review, Mar-Apr 2000,
Are CIOs Obsolete?, Michael J. Earl
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Survey Response Findings The Role of the CIO
We asked CEOs how they perceive the role of their
CIOs
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Although most CEOs expect their CIO to be a
technology evaluator, they believe that he or she
should also have operational and corporate
planning responsibilities
Survey Response Findings The Role of the CIO
Source Accenture, Series on IT Management
Delivery (SITE), March 2000
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Survey Response Findings The Role of the CIO
We also obtained the views of CEOs on whether the
demands placed on CIOs have changed over the past
3-5 years
Q. Do you agree that the CIOs technical planning
responsibilities have expanded to include
strategic planning?
Q. Do you agree that CIOs should have business
and financial skills in addition to technical
expertise?
Survey Respondents ()
Survey Respondents ()
Q. Do you agree that the CIOs role has expanded
to provide external customer support and
communications?
Survey Respondents ()
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Survey Response Findings The Role of the CIO
It is evident from the CEOs responses that CIO
roles have expanded considerably as technology
becomes a corporate enabler
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Survey Response Findings The CIO Profile
With respect to the recruitment of CIOs, CEOs are
four times as likely to hire a candidate with a
career track in IS than to hire one without
Q. Which of the following profiles best suggests
your CIOs employment history?
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Survey Response Findings The CIO Profile
CEOs were asked to rate the relative importance
of several attributes they might consider a CIO
to possess
Q. A CIO should have the ability to implement
goals that focus on IT efficiency
Q. A CIO should have a firm understanding of key
IT issues and technologies
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Survey Response Findings The CIO Profile
(continued)
Q. A CIO should have an understanding of business
issues and the alignment of IT activities to
business objectives
Q. A CIO should have a vision of what IT needs to
do and its purpose within the enterprise
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Survey Response Findings The CIO Profile
The results show that apart from possessing an
understanding of technology, a CIO should be able
to implement the organizations IT vision, and
align it to corporate objectives

• Survey Findings
• CIOs must maintain an appropriate level of
  technical competence Though there is an
  increasing bias toward business proficiency, CIOs
  would need to keep abreast of IT developments to
  deliver the required IT functionalities
• CIOs must position IT strategically aligning IT
  and corporate goals are fundamental to IT
  delivering value to the organization

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Survey Response Findings IT Management Practices
In surveying the current IT scene, we found CEOs
to be very involved in IT spending issues. This
could be expected as IT budgets have increased
rapidly in most companies
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Survey Response Findings IT Management Practices
The survey results indicate that IT Management
and Delivery at most organizations have met their
CEOs expectations
Q. Do you agree that IT initiatives are within
budget control?
Q. Do you agree that IT initiatives are allocated
sufficient budgets?
No. of Survey Respondents
No. of Survey Respondents
Strongly Agree
Strongly Agree
17
24
62
Agree
Agree
59
Neutral
Neutral
14
14
Disagree
Disagree
7
3
Strongly Disagree
Strongly Disagree
0
0
0
4
8
12
16
20
24
0
4
8
12
16
20
24
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Survey Response Findings IT Management Practices
(continued)
Q. Do you agree that IT initiatives are generally
able to deliver clear value?
Q. Do you agree that IT initiatives are completed
in a timely fashion?
No. of Survey Respondents
No. of Survey Respondents
Strongly Agree
Strongly Agree
14
31
Agree
Agree
52
48
Neutral
21
Neutral
17
Disagree
Disagree
17
0
Strongly Disagree
Strongly Disagree
0
0
0
4
8
12
16
20
24
0
4
8
12
16
20
24
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Survey Response Findings IT Management Practices
On IT outsourcing, we surveyed the extent of IT
functions that companies have outsourced
Q. Which of the following IT functions does your
enterprise contract out?
No. Survey Respondents
General App. Dev.
76
Data Center Operations
59
E-Commerce App. Dev.
72
Does not Outsource
21
0
4
8
12
16
20
24
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and found CEOs to be generally satisfied with
the service received in contracting out these
functions
Survey Response Findings IT Management Practices
Q. Please rate your overall satisfaction of
contracting out the relevant IT function?
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Agenda
The CEO IT Survey The Singapore Tribe Has
Spoken What Other Tribes Had Said
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What attributes work?
CIO Success Factors

• First, lets discount the obvious
• No correlation between type of business and the
  CIOs success
• No correlation between CIOs background and the
  targeted companys industry
• There does seem to be a correlation between
  understanding key IT issues and success
• Secondly, the CIO must have a vision of what
  needs to be done
• What is the purpose of IT within the enterprise?
• Focus is broadly visible -- both within IT and
  within the business
• Thirdly, the CIO must translate the vision into
  action
• Able to bold goals matched with practical short
  term moves
• Focus on long term IT effectiveness
• Focus on short term IT efficiency

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What attributes work (continued)?
CIO Success Factors

• Fourth, the CIO must have a Focus on Customer
  Value
• Seek to deliver differentiated services that
  customers find valuable
• Propose options which deliver value externally
  driving top-line growth
• Use external services where value cannot be
  delivered internally
• Finally, the CIO must align ITs activities in an
  organic manner
• Understand the big picture
• Develop the trust of the executive team

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Elements of the CIOs Job Description
What Does a CIOs Job Look Like?

• Reporting Relationship
• Trend is away from the CFO and/or COO reporting
  relationship
• Trend is towards reporting to the CEO as a peer
  of the senior team
• Status and Scope
• Plays major role in IT Governance (e.g., Chairs
  IT Steering Committee)
• Interacts with senior leadership to ensure
  alignment of IT activities
• All IT activities of consequence have a solid or
  dotted line to the CIO
• CIO is responsible for managing major vendor
  relationships
• IT Planning and Strategy is a major element of
  the CIOs ongoing role
• IT Infrastructure reports to the CIO
• Essential Functions
• IT Leadership
• Focuses proactively on emerging business
  initiatives
• Develops relationships with customers to better
  understand needs

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Elements of the CIOs Job Description (Continued)
What Does a CIOs Job Look Like?

• Essential Functions (Continued)
• Leadership (Continued)
• Develops broad range of relationships to ensure
  sponsorship of IT initiatives
• Fosters innovations and risk management in
  evaluating emerging technologies
• IT Strategy and Planning
• Works with Business Leadership to develop,
  evaluate and implement IT strategies that are
  aligned with business imperatives
• Contributes to the business strategy development
  process
• Understands the latest technologies and
  innovations and how these might enable business
  processes

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Michael Earl, a leading academic, described in
1990 the successful CIO profile as having four
essential elements along with a number of
survival attributes.
CIO Profile

• Survival Attributes
• Personal
• IS Experience
• IT Know-How
• Social Skills
• Sensitivity
• IS Management Processes
• Building a shared vision
• Building relationships
• CEO Relationship
• Proactive Planning
• Organizational Context
• Organizations attitude to IT
• Performance
• Creditability

The 1990 View CIO Profile Elements
Visionary
Relationship Builder
Deliverer
Tactician
Source Earl, M.J., Information Management, 1996
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Earls current perspective is additive with some
interesting insights from his continued study of
this issue
CIO Profile
Selected InsightsFortune 500 CIOs
The 1996, 2000 View CIO Profile Elements

• Knowledge of IT is critical
• One non-surviving CIO (and former CEO) in Earls
  study said I want to take up the CEO job again
  -- but I only get offered CIO jobs. I want
  four times the rate for being a CIO than I would
  accept for being a CEO
• One states that CIO means Career Is Over

Source Earl, M.J., Information Management,
1996, HBR, 2000