Margaret Smith

1
Getting the Board onboard

• Margaret Smith
• Finance IT Network
• London, 6th March 2009

2
The golden rules of communication

• One size does not fit all
• What works for me might not work for you and vice
  versa
• Use communication style(s) that are you
• Flex communication according to audience
• People buy from people they trust/respect

3
AGENDA

• Why I might say something interesting
• The problems boards face
• Boards then and now
• Risk management can and does help you
• Things that worked for me(and those that didnt)

4
Biography Margaret Smith

• 38 years in (IT) industry
• Previous companies include British Gas, Woolwich
  and LG
• CIO at LG twice
• On the LG UK Board for 15 years
• Set up and ran successfully the LG direct
  business and then e business
• January 2005, CEO CIO-Connect
• January 2006 to present, Various directorships
  

5
Some problems

• High percentage of CEOs say their CIO is no good
• Life of CIO now 2.5 years (also many old
  trustees retiring)
• Head hunters are briefed to recruit mess erasers
• Board members lose their jobs over IT debacles
• NEDs brought in to increase IT knowledge of the
  Board

6
Some more problems

• Boards think spend on IT is huge/too high and
  doesnt deliver
• Boards do not understand how to make IT more
  effective (and know they must do so)
• Boards do not have measures to manage IT
• Boards do not know the questions to ask

7
And yet more problems

• Older board members are frightened of IT (scared
  to be shown up)
• The CXO network spreads fear
• Younger Board members think they know how IT
  works
• All Board members are frightened of personal risk

8
Boards then and now......

• 1989

• 2009

• Board members IT illiterate
• IT director generally not on main board
• IT supports admin and accountancy stuff
• Brick walls around the organisation
• Internal IT provision
• IT Spend large
• Response times the big issue

• Boards mixed IT knowledge
• CIO role combined with other CXO roles
• IT enables business transformation
• Martini IT
• IT for partners and customers
• IT spend significant and growing
• Security and risk management the big issue

9
Stages of Maturity........ for anything
10
Risk management a great communications tool

• Especially for those sectors that are heavily
  regulated
• Personal risk is the focus especially in
  current climate
• Have a comprehensive process that speaks to their
  concerns
• IT risk usually has high impact and a reasonably
  high likelihood
• Trojan horses as risk managers

11
Things that have worked for me

• Personal credibility
• Use of different language styles including
  speaking differently to NEDs than to Executives
• Solve their problems for them
• Weekly chatty email
• Short, sharp and easy to read board paper

12
Things that have caused me problems

• Position on Board agenda (being too low down)
• Expectation of Board members
• Being able to articulate true end to end service
• Typical IT Personality (ie logical rather than
  emotive)
• Language of my people

13
BIS Balanced Scorecard
Forecast vs. Budgeted Expenses
Factors Affecting Budget Manday Analysis
Development Manday Rate YTD
Key Risks (LP)
Audit Risks COBIT Heat Map
Service Perception of Operations
Problem Management
e-Commerce Application Availability
Application Support (ReactiveProactive)
Delivery (Delivery Variance and Quality)
Infrastructure Capacity for Business Volumes
Top BIS Operational Services
Top Priority / Internal Programmes
Key Suppliers
Change Management
BSP Development Project Initiation
Turnover YTD
Sickness
Training
Employee Profile
14
Getting the Board onboard

• Margaret Smith
• Finance IT Network
• London, 6th March 2009