ROLE OF THE CIO

1
ROLE OF THE CIO

• Kera Alexander
• Bill Geoffroy
• Chuck Hickey
• Shallu Kanwar
• Bart Truitt

2
Chief Information Officer

• Chief Information Officer Usually the head over
  the technology/computer department at companies

Learnthat.com What is a CIO? CIO
Definition
Source
3
CIO Reporting Tree
4
CIOs Educational Background and Work Experience

• Most Advanced Degree
• Work Experience

IT Related Non-IT Related
Mean in year 15.3 7.9
5
Role of the CIO

• The Changing Role of the CIO

6
Most Important Attributes for the job.
7
Current Issues facing the CIO

• Lack of key staff and skill sets, retention.
• Inadequate budgets.
• Shortage of time for strategic thinking.
• Volatile market condition.

8
Gender Gap

• 91 of the CIOs are male compared to 9 female.1
• Salary Gap is smaller in technology 2
• In general workforce, women are paid 24 less
  than men.
• Not so in IT.

Median salary IT Staff IT MGMT
Men 50,000 72,000
Women 45,000 68,000
9
CIO Turnover

• According to an old joke, CIO stands for Career
  Is Over.1
• Turnover Statistics Time spent in last job 2

10
CIO Turnover

• CIOs turnover rate in comparison with other top
  executives
• Turnover rate

11
CIO Turnover

• What makes CIOs leave their jobs?
• More interesting challenges.
• Career advancement.
• Better financial packages.
• Disconnects with CEO/other seniors.

12
IT Budget

• On average, IT budget represents approximately 6
  of companys annual revenue.
• Average IT Budget as a percentage of companys
  revenues (by company size)

13
CIO Compensation

• Most CIOs are in the 100,000 - 250,000 a-year
  range. They make 183,245 on average including
  stock options and bonuses.
• Most of CIOs salary comes from base pay (81),
  which is not the case for other executives.
• CIOs pay rises with the size of the company.

14
City of St. Louis

• Gateway to the Midwest
• 7,771 Full Time Employees
• We sell Protection Quality of Life
• We serve the Citizens of St. Louis (348,189
  Population 2000)

Source St. Louis Annual Operating Plan FY03,
City of St. L., Page 562
15
Citys Budget
City of St. Louis

• 1 Billion Dollar Annual Budget
• 435,834 Surplus FY02
• IT Budget of 5,785,293 FY03
• Budget by Cost Recovery (Does not work)

Source St. Louis Annual Operating Plan FY03,
City of St. L., Page 562
16
Categories IT Department of Total City
Budget 5,785,293 1.4
Capital Expenditures 1,785,000 5
Employees 51 lt1
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Budget Division
Information Technology
19
Director of TechnologyCity of St. Louis

• Chris Dornfield
• Architect Degree University of Kansas
• Executive Access U.S. Director of Corporate
  Strategy

• Source
• Chris Dornfeld, CIO of St. Louis, interviewed in
  person by Chuck Hickey, September 30th, 2002
  October 10th, 2002.

20
Allocation of Time
Source

• Chris Dornfeld, CIO of St. Louis, interviewed in
  person by Chuck Hickey, September 30th, 2002
  October 10th, 2002.

21
What is the most important skill required for
your job?

• People Skills are the number one attribute
  required for my job
  -Chris DornField-
• Organization, Organization, Organizationand
  Accountability -Chris DornField-

Source

• Chris Dornfeld, CIO of St. Louis, interviewed in
  person by Chuck Hickey, September 30th, 2002
  October 10th, 2002.

22
Are you a member of Top Management? Yes

• Mr. Dornfield works with the Mayor (CEO) everyday
  all Directors weekly (face to face).
• Board Of Alderman and the Comptroller (CFO) are
  limited to several a month.

• Chris Dornfeld, CIO of St. Louis, interviewed in
  person by Chuck Hickey, September 30th, 2002
  October 10th, 2002.

Source
23
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The Biggest Challenge

• Political Issues
• Board Bill 96
• Outdated View of the CIO as only a High-Class
  Technician

Board Bill 96 will give complete control of the
IT department to the Mayor ending the Political
Maze
25
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Loss of Control

• 28 Alderman
• Comptroller
• President of the Board of Alderman

27
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IT Department-City View
Board Bill 96 is the last Hurdle...
Source

• Chris Dornfeld, CIO of St. Louis, interviewed in
  person by Chuck Hickey, September 30th, 2002
  October 10th, 2002.

30
IT Department

• What does the future hold for IT???

31
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32
GKN

• GKN Aerospace Services St.Louis
• A subsidiary of GKN PLC (Great Britain) (Guest,
  Keen, and Nettlefolds 1854)
• Supplier of structures, components and design
  services to aircraft and aero-engine
  manufacturers
• Acquired in early 2001 from Boeing structures
  operation
• Employs approximately 1500 people
• Estimated 2002 sales 330M

Fanny Sloan, CIO of St. Louis, interviewed in
person by Bill Geoffroy, September 30th, 2002.
Source
33
Fanny Sloan
Education

• Masters in Business Administration
• Bachelors of Science
• - Major in Banking,and Finance
• - Minor in Accounting

Source
Fanny Sloan, CIO of St. Louis, interviewed in
person by Bill Geoffroy, September 30th, 2002.
34

• Current Director of IT (GKN)
• Manager of IT (TRW Aeronautics)
• Operations Systems Manager (ITT
  Gilfillan)
• Director of Quality Assurance (ITT
  Globe Mackay Cable Radio Corp.)

Work Experience
Interview With Fanny Sloan
Fanny Sloan, CIO of St. Louis, interviewed in
person by Bill Geoffroy, September 30th, 2002.
Source
35
The CIO - CEO Relationship
Strategy
CEO
CFO
Executive Steering Committee
COO
CIO
Fanny Sloan, CIO of St. Louis, interviewed in
person by Bill Geoffroy, September 30th, 2002.
Source
36
Typical Day
Fanny Sloan, CIO of St. Louis, interviewed in
person by Bill Geoffroy, September 30th, 2002.
Source
37
The IT Biggest Success

• ERP implementation project completed in four
  one half months
• GKN saved 1 million per month versus rental
  costs of the Boeing system
• Project implementation earned Computer World
  Honors Commemorative Medallion for manufacturing
• Also received 2001 GKN aerospace Services
  Excellence Award

Fanny Sloan, CIO of St. Louis, interviewed in
person by Bill Geoffroy, September 30th, 2002.
Source
38
Accomplishments
Network, Business, and Machine Tool
Eng. Config. Control, Cost Acctg, Quality
Systems...
A record 8 month IT infrastructure Implementation
ERP
Data and Voice Comm.
Surgically Removed from Boeing Systems
Fanny Sloan, CIO of St. Louis, interviewed in
person by Bill Geoffroy, September 30th, 2002.
39
The Mission of IT in a Manufacturing Co

• Involvement in every aspect of the companys
  business
• Ensure decision makers have accurate and
  timely data
• World class security measures to protect the
  system

Fanny Sloan, CIO of St. Louis, interviewed in
person by Bill Geoffroy, September 30th, 2002.
Source
40
The Mission of IT in a Manufacturing Co
Emerging information technologies and electronic
commerce creates significant opportunities for IT
to improve services and reduce cost. New
technologies provide new means to interact and
transact with customers and suppliers. New
technologies offer simplification and improved
process that will enable us to produce quality
products on time at lower cost.
-Fanny Sloan-
Fanny Sloan, CIO of St. Louis, interviewed in
person by Bill Geoffroy, September 30th, 2002.
Source
41
Keys to Success

• Employ selective IT outsourcing as a routine
  means of increasing competitiveness
• - Gaining access to new resources and skills.
• Concentrate highly needed skills.
• Involvement in companys program, i.e. lean
  events
• Keep in tune with Executive Staff goals and
  make sure they are supported adequately.

Fanny Sloan, CIO of St. Louis, interviewed in
person by Bill Geoffroy, September 30th, 2002.
Source
42
The Future of IT

• Review the effectiveness of IT in every
  organization
• The nature of IT mandates the dilemma of
  outdated skills of current staff, outdated
  applications, and connectivity
• Most infrastructures are old and built using
  non- architect solutions
• New challenges
• -Changing needs of customers, and constituents
• - Performing strategic planning, investment
  management, and engineering activities in
  support of business needs

Fanny Sloan, CIO of St. Louis, interviewed in
person by Bill Geoffroy, September 30th, 2002.
Source
43
JAN HOLLOWAY
The primary focus of the CIO is aligning
Monsantos IT strategy with business strategy-
Jan Holloway

• Vice President And Chief Information Officer
• Monsanto Company
• Jan Holloway, CIO of Monsanto, interviewed in
  person by Bart Truitt, September 26th, 2002.

44
MONSANTOS BACKGROUND

• Leading Provider of
• Agricultural Products and Integrated Solutions
• Products
• Roundup-the worlds best selling herbicide
• DeKalb and AsGrow Seed brands
• Our Customers are
• Farmers, Corporations, Scientists, Home and
  Landowners worldwide
• Employing over 14,500 people in 380 global
  locations
• Sales of 5.5B in fiscal 2001
• Source Monsanto Company 2001 annual Report

45
BUDGETS AND PROCESSES

• 2002 Numbers were a 5 reduction from 2001
• Ground Up Annual Budget Process
• Existing Capabilities
• Initiatives Identified
• Initiatives Scrutinized
• Approved Initiatives Added to Existing
  Capabilities
• Joint Efforts with SBUs may be funded by SBU
• Jan Holloway, CIO of Monsanto, interviewed
  in person by Bart Truitt, September 26th, 2002.

Source
46
BACKGROUND OF A CIO

• Education
• M.S. Computer Science, Washington University
• B.S. Mathematics, Augusta College
• Jan Holloway, CIO of Monsanto, interviewed
  in person by Bart Truitt, September 26th, 2002.

Source
47
BACKGROUND OF A CIO

• Experience
• Co-Lead, Information Technology, Monsanto
  Agriculture
• Director, Information Technology, Monsanto Crop
  Protection
• Manager, Information Technology, Monsanto
  Agriculture
• Manager, Information Technology, Monsanto Ag New
  Products
• Senior Group Leader, Monsanto Research Center
  User Support
• Staff Research Associate, Washington University
• Jan Holloway, CIO of Monsanto, interviewed
  in person by Bart Truitt, September 26th, 2002.

Source
48
Breakdown of the CIO Skills Mix

• 40 Business Skills
• Leaders need market and customer knowledge
• 40 People Skills
• Correct organizational structure
• Processes for personal development
• 20 Technical Skills
• Reliance on technical specialists for this
• Jan Holloway, CIO of Monsanto, interviewed in
  person by Bart Truitt, September 26th, 2002.

49
MONSANTO ORG CHART
Jan Holloway, CIO of Monsanto, interviewed in
person by Bart Truitt, September 26th, 2002.
Source
50
SENIOR MANAGEMENT MEMBER

• Reports to Hugh Grant, Senior Vice President and
  COO Monsanto
• Mr. Grant has championed IT initiatives
• Member, Monsanto Leadership Team (MLT)
• Member, Operations Team
• Member, Cost Management Team
• Sponsor, Culture and Capability Team
• Jan Holloway, CIO of Monsanto, interviewed
  in person by Bart Truitt, September 26th, 2002.

Source
51
IT AS A STRATEGIC ADVANTAGE

• Operational Excellence for all customers
• Helping to Deliver the RD Pipeline
• Optimized Sourcing to reduce costs
• New Technology Scan
• Customer and Cost Focused Project Evaluation
• Jan Holloway, CIO of Monsanto, interviewed in
  person by Bart Truitt, September 26th, 2002.

Source
52
IT AS A STRATEGIC ADVANTAGE

• 1.) Operational Excellence for all customers
• 95 to 100 of Monsanto employees are customers
• Ensure Focus on External Customers
• Farmers,
• Retailers,
• Distributors,
• B2B with key customer accounts
• Jan Holloway, CIO of Monsanto,
  interviewed in person by Bart Truitt, September
  26th, 2002.

Source
53
IT AS A STRATEGIC ADVANTAGE

• 2.) Delivering the RD Pipeline
• Scientifically specialized software programs
• Information Management
• Jan Holloway, CIO of Monsanto, interviewed in
  person by Bart Truitt, September 26th, 2002.

Source
54
IT AS A STRATEGIC ADVANTAGE

• 3.) Optimized Sourcing to Reduce Costs
• Commodity-based Activities (such as pc break-fix,
  audio-conferencing)
• Highly Specialized Activities (such as some found
  in RD-Genomics, Biotech, Seed Breeding)
• Temporary Situations (staff augmentation)
• Jan Holloway, CIO of Monsanto, interviewed in
  person by Bart Truitt, September 26th, 2002.

Source
55
IT AS A STRATEGIC ADVANTAGE

• 4.) New Technology Scan
• Virtual teams
• IT personnel across the organization
• Focus on tools and technologies resulting in
  strategic advantage
• Jan Holloway, CIO of Monsanto, interviewed in
  person by Bart Truitt, September 26th, 2002.

Source
56
IT AS A STRATEGIC ADVANTAGE

• 5.) Customer and Cost Focused IT Project
  Evaluation
• New Projects with SBUs
• Scope and Benefits defined early
• NPV on front end
• Subjective Audit for closing evaluation
• Critical feedback from
• Customers
• Sponsoring SBU
• IT cannot make this assessment alone it has to
  be done with the sponsoring and user group.
• Jan Holloway
• Jan Holloway, CIO of Monsanto, interviewed in
  person by Bart Truitt, September 26th, 2002.

Source
57
BIGGEST SUCCESS TO DATE

• Reduced Costs by gt30 within the last 3 years
• Work Concentration
• Delivering Innovation
• Initiative Selectivity
• Jan Holloway, CIO of Monsanto, interviewed in
  person by Bart Truitt, September 26th, 2002.

Source
58
HER BIGGEST CONCERNS ARE

• Security
• People Motivation
• Jan Holloway, CIO of Monsanto, interviewed in
  person by Bart Truitt, September 26th, 2002.

Source
59
A TYPICAL DAY FOR THE CIO
Source

• Jan Holloway, CIO of Monsanto, interviewed in
  person by Bart Truitt, September 26th, 2002.

60
HER TENETS

• Aligning Business Strategy and IT Strategy is a
  two way street.
• Never Say NoFind a Way!
• Drive the Future.
• Jan Holloway, CIO of Monsanto.
• Jan Holloway, CIO of Monsanto, interviewed
  in person by Bart Truitt, September 26th, 2002.

Source
61
Report To Size in Rev. IT-Employees as a of total
City Of St. Louis Mayor 1B lt1
GKN CEO 330M lt1
Monsanto COO 5.5B 6.5
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Gender
Research 91 Male
City Of St. Louis Male
GKN Female
Monsanto Female
63
Background/Experience
Background Experience
City Of St. Louis Architect Degree 2 years
GKN MBA 22 years
Monsanto M.S. in C.S. 25 years
64
The Value Of IT

• Productivity Paradox 1
• Cost center vs. value center2

Source
1. Brynjolfsson E., and Hitt L., Beyond the
Productivity Paradox Computers are the Catalyst
for Bigger Changes, Communication of the ACM,
August 1998 2. http//www.cio.com/research/surveyr
eport.cfm, viewed 9/15/2002
65
Can the Value of IT be Measured?

• Finding tangible equivalents
• Intangible benefits
• Customer satisfaction
• Quality
• Service
• Convenience

Source
http//www.cio.com/research/surveyreport.cfm,
viewed 9/15/2002
66
How to Communicate the Value of IT

• Metrics Measurements
• NPV
• Real Option Theory
• Revenue Distance Theory
• Alignment with business

Source
http//knowledge.wharton.upen.edu/print-version.cf
m, Viewed 9/4/2002
67
The Added Value of the CIO

• Obsessive and continuous focus on business
  imperatives
• Interpretation of external IT stories
• Establishment and Maintenance of IS executive
  relationships
• Establishment and communication of IS performance
  record
• Concentration of the IS development effort
• Achievement of a shared and challenging vision of
  the role of IT
• Personal contributions beyond the IT function

Earl, M., and Feeny, D., "Is Your CIO Adding
Value?," in Managing IT as a Strategic Resource,
(Willcocks et al. eds),McGraw Hill, Berkshire,
1997
Source
68
Changing Role of CIO

• Technology Business visionary that utilizes IT
  to drive business initiatives resulting in a
  competitive advantage for the firm. Mis 480
  Group (The role of the CIO)

69

• The End