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CA2 - IT Governance
Emerging Role of CIO (as a Strategy Execution Officer)
Presentation byAkbar Husein,Balaji Balasubramanian, Kartik Mahadevan, Prateek Mehra,Saranya Ranganathan
Chief Information Officer
‘CIO ? Career Is Over’.– It’s an old joke, which might have raised a smile thirty years ago,
but which is now as outdated as flared trousers and brick-sized mobile phones. And even in the old days, it had a bitter edge to it.
Evolution of CIO Role
1970 – First Appointed. Financial Systems, Order Processing
1980 – Data Explosion, Personal Computers, Personal Productivity
1990 – ERP CRM, SCM, BI, eBusiness, Y2K, Internet
2000 – Mobile Devices, ERP Optimization, Business ROI, BI
2008 – Competitive Strategy, Business ROI, Process Improvement, Globalization, Security
A Historical Perspective – Where has the focus turned over the years…
The CIO Title Grows
What is in a Name?
A lot, especially when "chief" is in the title. Today, more heads of IT sport the CIO title than ever before, while the old-fashioned "director" has fallen out of favor.
2004 2007 2008
CIO 49% 50% 60%
CTO 3% 6% 4%
VP / IT 13% 13% 11%
Director 29% 23% 18%
Other 6% 8% 6%
Agenda• What are the emerging archetypes for CIOs and how do they spend their
time?• How do senior non-IT executives think CIOs should allocate their time?• Does every company need an Strategy Execution Officer (SEO) to ensure
implementation and effective use of enterprise platforms?• What is the appropriate scope for an SEO role?
CIO Archetypes (The State of CIO in 2007)
Business Leader Turnaround Artist
Operational Expert Innovation Agent
Business Leader. Priorities are aligning IT and business goals.
Operational Expert. Primary mission is to cut costs.
Innovation Agent. Focus on ITs ability to drive new business initiatives.
Turnaround Artist. Risk-taking agent of change.
Operational Expert
Business Leader Straddling the business technology divide, this archetype relies on
communication and collaboration to get the job done.
Put a premium on understanding business processes
Aligning IT and business goals
Use technology to improve business processes, and controlling costs
Interacting with CXOs and business people
Focus on budgeting and compliance
Support managing IT crises
Consider the ability to lead and motivate staff
Innovation AgentStrategist who drives business change–and leaves the details to others.
Considers IT should proactively envision business opportunities
Members of their company’s executive committee
Stress Strategic thinking & planning is an important personal skill
Have worked in sales or marketing
Operational ExpertRolls up their sleeves and meets the challenges of the business head on.
Managing IT crises
Share IT ROI accountability and cut IT cost
Improve IT talent & Operations
Project Management & Execution
Deliver IT Systems on Time & Budget
Turnaround ArtistRelishes the challenge of fixing broken IT situations.
Shortest tenure of all the archetypes
Biggest paycheck of any archetype
Influence change in others
Directly accountable for IT ROI
CIO Types (The State of the CIO in 2008)
Function Heads
Transformational Leaders
Business Strategists
Function Heads. Focused on running the IT organization, achieving IT operational excellence and providing reliable, effective services.
Transformational Leaders. Focused on creating change for their enterprise through process transformation and a close partnerships with business operations.
Business Strategists. Focused on driving strategy for competitive advantage through activities that face across the enterprise and externally.
Managing IT crises Developing IT talent
Improving IT operations Improving system
performance Security management Budget management
Functional Head
Redesigning business processes
Aligning IT initiatives and strategy with business
goals/strategy Cultivating the IT/business
partnership Leading change efforts
Implementing new systems and architecture
Mapping IT strategy to overall enterprise strategy
Transformational Leader
Developing/refining business strategy
Understanding market trends and developing external
customer insight Developing business
innovations Identifying opportunities for competitive differentiation
Reengineering or developing new sales and distribution
channels
Business Strategist
CIO’s Allocate Time Across Role Types
37%
51%
12%
Distribution of CIO Role
Current and Future Distributions0
25 50 75100
CurrentDistribution
of CIOs
FutureDistribution of CIOs
CIO’s Spend Most of Their Time with Staff
Time SpentSmall
Companies
Mid-Size Companies
Large
Companies
IT Staff or team 38% 41% 39%
Company's Executives 22% 21% 23%
Non-IT employees 20% 18% 17%
IT vendors/service providers 10% 11% 11%
External partners/customers 9% 9% 9%
Business Strategists spend More Time in Business
Time SpentFunction Head
Transformational
Leader
Business
Strategist
IT Staff or team 42% 39% 32%
Company's executives 20% 23% 27%
Non-IT employees 18% 18% 17%
IT vendors/service providers 11% 11% 10%
External partners/customers 8% 10% 14%
Agenda• What are the emerging archetypes for CIOs and how do they spend their
time?• How do senior non-IT executives think CIOs should allocate their time?• Does every company need an Strategy Execution Officer (SEO) to ensure
implementation and effective use of enterprise platforms?• What is the appropriate scope for an SEO role?
CIO - Staying Power
• The average job tenure has risen steadily since 2004, though it is more than a year shorter at large companies than at small and midsize companies.
• Average tenure in current position is*
5 Years, 20 Days*Source: The State of CIO 2007
Roles to playRoles to focus• Chief Integration Officer• Chief Innovation Officer• Chief Irritation Officer• Chief Identity Officer• Chief Inoculation Officer• Chief International Officer• Chief Investigative Officer• Chief Information Officer
Roles to avoid• Chief Inertia Officer• Chief Impediment Officer• Chief Inefficiency Officer
CIO – Report lines
41%
16%
23%
7% 13%CEO
COO
CFO
Corp. CIO
Other
Expected Competencies
CXO Expectations from CIO Strategic Orientation Results Orientation Market Knowledge External Customer Impact Collaboration and Influence People and Organizational
Development Change Leadership Team Leadership
Agenda• What are the emerging archetypes for CIOs and how do they spend their
time?• How do senior non-IT executives think CIOs should allocate their time?• Does every company need an Strategy Execution Officer (SEO) to ensure
implementation and effective use of enterprise platforms?• What is the appropriate scope for an SEO role?
Strategic Execution (Problems) 90% organizations fail to execute well-planned strategies. Many brilliant strategies fail due to poor execution. Insufficient information to employees about strategy and not providing
enough resources.
Three Reasons Why Good Strategies Fail: Execution, Execution, Execution...
Two things to become success: Ability to make good decisions Ability to implement those decisions.
People + Plans = Strategic Execution
Strategy Execution Officer Senior executive accountable for
Definition, Design, Implementation of Enterprise platforms, some cases, use of a firm’s Digitized Process Platform.
In most organizations, the CIO is assuming this role, shifting the IT organization from enabler to leader.
SEO Role – Enterprise Process Platforms
Enterprise IT & Process Governance
(11)
Project Design & Implementation
(10)
Ongoing Operations/ Continuous Improvement
(4)
Designs Platform
Builds Platform Components
Leverages Platform
Source : MIT Sloan 2008- Numbers reflect how many of 12 SEOs studied defined each responsibility.
Responsibility 1: IT and Process Governance
Ensure clarity among senior executives about platform design.
Coordinate demands for enterprise change projects, most of which involve IT implementations.
Establish priorities for change projects based on multiple criteria:
Organizational readinessContribution to platformAbility to use platformExpected benefits
Work with senior executive team which either makes investment decisions or approves SEO recommendations.
Responsibility 2: Project Design/Implementation
Ensure disciplined, effective project methodology.
Engage all key stakeholders early and often.
Provide expertise on process design.
Provide oversight and/or support of change management.
Responsibility 3: Ongoing Operations
Provide enterprise services, usually as a shared services organization.
Accept accountability for continuous improvement of the platform.
Ensure that the enterprise is driving value from the platform.
Agenda• What are the emerging archetypes for CIOs and how do they spend their
time?• How do senior non-IT executives think CIOs should allocate their time?• Does every company need an Strategy Execution Officer (SEO) to ensure
implementation and effective use of enterprise platforms?• What is the appropriate scope for an SEO role?
SEO - Two Main Responsibilities To ensure the effective execution of organization’s vision and strategy To leave the organization more sustainable then when he joined.
SEO Scope Developing and overseeing the components of the core business-
process platform Accepting a leadership role in a company's IT governance Brokering opportunities for driving value from the platform Establishing an organization and incentives for sustaining the platform.
Keys to Successful Execution Develop a model for execution Choose the right metrics Don't forget the plan Assess performance frequently Communicate
CIO
• ‘CIO ? Career Is Over’.– That’s hopelessly out of date.– Maybe a more modern version might be…
• ‘CIO ? Careering… Into Opportunities’.
Acknowledgements• The Future Multi-dimensional CIO, Jeff Wacker, EDS, USA• The evolving role of CIO, David Henderson, IBM, UK.• Convergent thinking among the C-suite why integration and collaboration spell big
opportunity for CIOs, IBM, USA. • The Enterprise of the future, IBM, USA.• The State of the CIO 2007 & 2008 Reports, CIO Magazine, USA.• The Role of the Government CIO, GSA Office of Citizen Services and Communications,
USA.• The Secrets to Successful Strategy Execution, Harvard Business Review, USA.• In the age of agility, CIOs are agents of change and business transformation, Korn/Ferry
International, USA.• All Roads Lead to the SEO, Jeanne W. Ross and Peter Weill, The Wall Street Journal, USA.• IT Governance Class Materials, Pallab Saha, NUS, Singapore.
Thanks
Q & A… f rom future CIOs…
by Akbar Husein, Balaji Balasubramanian, Kartik Mahadevan, Prateek Mehra and Saranya Ranganathan