The Role of a CIO

November 9, 2001

Trey BaxterLisa Weingart

Rick White

The Role of a CIO

CIO Mission To provide technology vision and leadership for developing and implementing IT initiatives that create and maintain leadership for the enterprise in a constantly changing and intensely competitive marketplace.

Gartner Group Inc, Mission of the CIO http://www.cio.com/research/executive/edit/gartner_description.html

Presentation OverviewCIO InterviewsThe CIO positionWhat’s next?Compensation

CIO InterviewsSSM HealthcareMonsantoRohm and Haas

SSM Health Care: Overview

One of the Largest Catholic Health Care SystemsOwns, operates, & manages 19 acute care hospitalsLocated in Missouri, Illinois, Wisconsin, & Oklahoma20,000 employees5000 affiliated physicians

http://www.ssmhc.com/internet/home/ssmcorp.nsf

http://www.ssmhc.com/Internet/Home/ssmcorp.nsf/web+hierarchy/39D0FEA5684A496F8625672B0064F69A?OpenDocument

SSM Health Care: CIOTom Langston, President and CIO of SSM Information CenterB.S., Business, UMSLMBA, Finance, SLUFormer Corporate Vice President –

Employee Benefits20 years at SSM6 months as SSM’s first CIO

Interview with Tom Langston, October 31, 2001

SSM: Organization Prior to 2001

CEO

Senior Vice Presidents COO/ EVP Senior Vice Presidents

President Health Businesses Regional Presidents

EVP Information Center EVP Material Management EVP Home Care


SSM: OrganizationCurrent

CEO

Senior VPs COO/EVP

President/CIOInformation Center Regional Presidents

Presidents of Material Management

Home Care


SSM: CIO BackgroundCorporate Director then VP of Employee Benefits Systems oriented nature of Benefits Administration Had a need, taught self software (dBase,

Approach) Built benefits system Recognized as a power user/expert by system

leadership and IS Established reputation and relationships with

senior management via benefits, pension committees etc.


SSM: CIOSelection Attributes

Proven leadership skillsCredible reputationPolitical SavvyStrong Relationships with senior management Enough of a technical background to know what's going on without getting into programming or systems details


SSM: Role PerceptionProvide guidance to Innsbrook Group (the Board) in developing IS StrategyEnsure that projects undertaken by IS are consistent with corporate strategyAdvocate for IS initiatives at Capital Allocation Ensuring IS infrastructure functions 100 percent of the timeEstablish an IS environment in which the Entities (Hospitals, etc.) can obtain the functionality they need to run their businessesGet out in front of IS customers and COMMUNICATEGather IS issues from Information Management Committee “Listening Posts” throughout the organizationResponsibility to put his weight behind critical strategic issues


SSM: CIO ChallengesChanging the perception of IS from that of a cost center to that of adding value

generate excitement around IS capability

Ensuring that Infrastructure functions ALL the timeDisaster RecoverySAP ERP Roll out


Monsanto OverviewLeading provider of agricultural products to farmersBusiness in two segments Agricultural productivity

Crop protection products, animal agriculture and environmental technologies

Seeds and genomics Consist of the global seeds and related traits business and

genetic technology platform

14,000 people around the worldWorldwide Locations Africa, Asia, Australia, Canada, Caribbean, Central America,

Europe, South America, United States

www.monsanto.com

Monsanto CIOJanet M. Holloway, CIO of MonsantoB.S. degree in Mathematics, Augusta

College. M.S. degree in Computer Science,

Washington University in St. Louis. 18 years at Monsanto Approximately 2 years Monsanto CIO

Interview with Janet Holloway, November 1, 2001

Monsanto: CIO Background

Co-Lead, Information Technology, Monsanto Agriculture Director, Information Technology, Monsanto Crop Protection Manager, Information Technology, Monsanto Agriculture Manager, Information Technology, Monsanto Ag New Products Division Senior Group Leader, Monsanto Research Center User Support Group Leader, Monsanto Research Center Application Development Senior Programmer Analyst, Monsanto Research Center Lab Automation Staff Research Associate, Washington University


Monsanto: CIO Keys to Success

Hard work! Get involved in projects and issues. “Stay low and do not fly too high”. Focus on people and results Align with business priorities.


Monsanto: Role Perception

Business Oriented more then technical oriented Good Communicator – bridge the gap between

business and technology Flexible – technology matches business needs. Involved in Enterprise Effective leadership Insight – ability to convert experiences Work under authority, not power… earn it


Monsanto: CIO OverviewCIO dayPlanned out… with meeting and work sessions

What keeps Jan up at night?Currently…

Achieving budget targets for 2002 Keeping up with technology Security of our systems and environment Presently we are redesigning our Infrastructure and I want that

to go smoothly


Monsanto: CIO Challenges Budget / cost management Looking out for the people and developing them Keeping up with technology

Rohm and Haas: Overview

One of the world’s top specialty chemical companies, with sales of approximately $7 Billion, nearly 140 manufacturing and research locations in 27 countries and more than 18,000 employees.

Interview with Anne Wilms, November 5, 2001

Rohm and Haas: CIO Anne Wilms

Vice President and Chief Information Officer since December 1st, 1999

Rohm and Haas: CIO Background

Vice President and CIO of Sonat Inc. Oracle CorporationDirector of Information Systems at Wisconsin Power and LightExecutive Management Development Program at University of Chicago Graduate School of Business in 1993 Computer Program at Trinity College Dublin, Ireland 1979


Rohm and Haas: Daily Activities

Breakfast meetings

More meetings

Videoconferencing



Rohm and Haas: Challenges

Add valuePositive impactMotivate IT divisionEvolve rapidlyIT Literacy of business people


Rohm and Haas: Latest tech and trends

NetworkingCommittee’sGartner and AMRInternet independent analysisAsk others and verify


Rohm and Haas: Future

Change agentDevelop e-capabilityTransformationSAP rolloutIT Literacy of business people


Rohm and Haas: Committees

Currently:Villanova CIO Advisory CommitteeSt Joseph

PreviouslyAdvisory committee for the school of engineering at Vanderbilt UniversityMember of MIS Forum at the University of Alabama at Tuscaloosa


Rohm and Haas: Success strategies

Business FocusedRight team of peopleGood listenerCreative solutionsChange Agent

The CIO PositionResponsibilitiesReporting RelationshipChanging Role Current RoleInteraction with CEOThe Model CIOTop Ten Qualities of a 21st Century CIOEthics

Have you ever thought of being a CIO?

CIO ResponsibilitiesBusiness technology planning process Applications development IT infrastructure and architecture (e.g., computers and networks)

Sourcing PartnershipsTechnology transferCustomer satisfactionTraining


CIO Reporting Relationship

Reports to a senior functional executive (EVP, COO, CFO) or CEO Key management position Responsible for IT policy Aligning IT strategy with business strategies

Typical title is Vice President and Chief Information Officer (CIO)Location is company headquarters.


How do you think the CIO role has changed in the last 3 – 5 years?

Changing Role of a CIOIn May for a roundtable discussion at Giga Information Group's IT Forum 2001 in

Las Vegas, 7 CIOs discussed, “ Where was the role of the CIO three to five years ago? What's going on now?”

Below are some quotes from this conversation:

“Sometimes when you see the qualification demands of the CIO today, you wonder if even God would qualify“

“Expert technical knowledge is a given, but in addition, now CIOs have to initiate organizational strategy before the CEO or other business leaders come to them.”

“…most of the roles and responsibilities have been focusing more towards a business sense. We're still seeing CIOs that are business people, but they also have a technology background”

The CIO, Michael Goldberg - The CIO - Past and Future – May 2001 http://www.cio.com/research/executive/edit/061301_roundtable.html

Changing Role of a CIO(continued)

“Three to five years ago, a CIO was more back office.”

“…they have to be strong leaders who inspire a loyal team of talented players who make their companies run.”

“CIOs have to initiate organizational strategy before the CEO or other business leaders come to them”

“No more order taking”

“I think across the board three or five years ago, most IT organizations and CIOs were expected to deliver the technology that enabled the business to perform the basics of business functions.”

“If you asked what were we doing 10 years ago, we were probably pursuing the business to adopt technology, trying to teach IT. But three to five years ago, I think the business learned that technology was critical if we were going to meet our business objectives, if we were going to really stay in business.”

The CIO, Michael Goldberg - The CIO - Past and Future – May 2001 http://www.cio.com/research/executive/edit/061301_roundtable.html

The Current CIO RoleSource: "The Changing Role of the Chief Information Officer“

Korn/Ferry conducted 340 telephone interviews of CIOs: 150 from the United States, 70 from the United Kingdom, 70 from Germany and 50 from France.

Given these changes, the survey found that a CIO's ideal resume; should include both technical/engineering training and a solid background in finance, marketing and strategic planning.

eWEEK, Aileen Crowley - The role of CIO is changing from techie to visionary- December 16, 1998 http://techupdate.zdnet.com/techupdate/stories/main/0,14179,376728,00.html

Interaction with CEO

Source: "The Changing Role of the Chief Information Officer“

In CIO Magazine “Ask the Expert” the following question was asked:

Q. What do you believe is changing or has changed about what CEOs want of CIOs these days?

Reply:

•great leader

•business person •strategic thinker.

•contribute to the organization beyond the domain of IS

•to think in cross-functional terms, to see the big picture

•problem-solve across the organization

•great communicators

•CEO's also want their CIO's to work long hours, travel globally, be great role models, be physically and mentally fit, and be true team players.

CIO, Beverly Lieberman – Ask the Expert- August 6, 2001 http://www2.cio.com/expert/2001/ questions/question606.html

The Model CIO

Deliverer

Re-architect

Politician

Reformer

Vision Builder

Change master

Relationship Builder

Alliance Manager

Mastering Information Management - “Change isn’t optional for today’s CIO” Michael Earl, professor of information management at London Business School – 69 - 72

Top Ten Qualities of a 21st Century CIO

10. Ability to hire, develop and retain high-quality IT professionals9. International or global experience8. Knowledge of and experience in a specific industry7. Ability to create and manage change6. Communication skills5. Management skills4. Relationship skills 3. Business savvy 2. Expertise in aligning and leveraging technology for the

advantage of the enterprise1. Leadership.

CIO, Mark Polansky. THE CIO TOP TEN – September 15, 2001 http://www.cio.com/archive/091501/career.html

CIO EthicsCIOs usually do not act unethically, even though the opportunity exists

Question Agree (%) Disagree (%)

There are many opportunities for MIS managers in my company to engage in

unethical behavior

47.5 37.7

MIS managers in my company engage in behaviors that I consider to be unethical

19.7 80.3

Successful MIS managers in my company are generally more ethical than

unsuccessful managers

73.8 13.1

Source: Scott J. Vitell and Donald I. Davis, “Ethical Beliefs of MIS Professionals: The Frequency and Opportunity for Unethical Behavior,” Journal of Business Ethics 9 (1990). Taken from Mangement Information Systems textbook by Raymond MacLeod, Jr, 1998 page 119

What’s the next career move for a CIO?

What’s Next For a CIO?Many CIOs become CEOs April 1999 Thomas L. Thomas leaves his CIO post at

3Com Corp. to take over as chairman and CEO of CRM developer Vantive Corp.

July 1999 After a stint as COO, former Compaq Computer Corp. CIO Michael D. Capellas takes over as its president and CEO.

August 1999 Louis Burns, Intel Corp.'s director of IT, is promoted to general manager of the company's new platform components group, which designs processors and chip sets.

CIO Magazine, Trail to the Chief – David Pearson - Aug 1999 http://www.cio.com/archive/080199_ceo.html

How much do you think a CIO gets paid?

CIO CompensationJanco Associates' MIS 2001 Compensation Study Compensation for the "best of breed" MIS executives: $434,416 for large companies (revenues over $500MM) $490,559 for medium sized companies (revenues less than

$500MM). Janco Associates' MIS 2001 Compensation Study LARGE COMPANIES:

ORGANIZATIONS RESPONDING 463 TOTAL POPULATION: 21,456

MID-SIZE COMPANIES: ORGANIZATIONS RESPONDING 527 TOTAL POPULATION: 17,626

Janco Associates'; Press Release - January 15, 2000 http://www.ejobdescription.com/SalarySurvey.htm

http://www.ejobdescription.com/SalarySurvey.htm

Now do you want to be a CIO?

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The Role of a CIO