201212 the changing role of the cio

THE CHANGING ROLE OF THE CIO at banque internationale à luxembourg

December 17, 2012 - Prepared by Raphaël Henry

WE ARE CIONET LUXEMBOURG

CIONET’s mission is to feed and develop top-level IT executives with the resources they need to realise their full

potential.

CIONET Launch event, October 4, 2013, Hotel Simoncini

The Changing Role of the CIO

CIONET LUXEMBOURG

Welcome address by Thierry Delroisse, COO and Board Member of BIL

What the CEO expect from its CIO by Lázaro Campos, former CEO of Swi0

CIO Tes:monials : The Changing Role of the CIO • From a full local CIO to a Group head of IT systems & The CIO, a major actor of the company strategy

by Christophe Pierron, CIO of Caceis Luxembourg • Bob Kneip, CEO of Kneip • Francisco García Morán, European Commission, Director of Digit

The new breed of CIO by Pierre CaEoir, CIO pracFce Leader at Egon Zehnder

Agenda : ‘THE CHANGING ROLE OF THE CIO’ EVENT

CIO’s communication

with CEO and Board

Lázaro Campos CIONet Event – 17 December 2012

Evolution of CIO role

From To

Keeping the business running Driving business transformation Enabling business innovation

Keeping the lights on Delivering IT-centric change Aligning IT and organisational strategies

Expectations Keeping the business running

• Availability, Security, Confidentiality, Integrity • Manage risk profile: technology and operations • Technology management (obsolescence vs opportunity) • No surprises

Driving business transformation • Optimise quality/cost ratios • Encourage efficiency and continuous improvement • Act in context

Enabling business innovation • Driver of relevant innovation • Military precision vs Innovation from within

Communication

Ü  « The truth, and nothing but the truth »

Ü High level heads-up in advance, then just in time detail

Ü  Framework for control and completeness

Ü  External references and benchmarks

Ü Approximately useful vs precisely irrelevant

Ü  Link to the business. Always

Other potential Questions Ü  What direction should CEO/Board give to the CIO relative to te governance

and management of IT and why would they do it?

Ü  What does the CEO expect from the CIO?

Ü  What does the Board expect from the CIO?

Ü  How and about what should CIOs communicate to CEO and Board?

Ü  Should CIOs spend more time communicating with CEO/Board? Have you experienced that after the fact the information from the CIO was not complete enough or not sufficiently to the point?

Ü  Is there a role for the CEO as intermediary between CIO and Board?

Ü  What can a CEO do to improve the communication to the Board about often complex IT project, technology or IT risk issues?

Ü  Experiences and examples of good communication and collaboration between CIO/CEO/Board

Main drivers of change

Ü  From physical to virtual IT depts

Ü  Cloud ‘everything’

Ü  Less humans

Ü  Cyberwarfare will militarise IT

Ü  BYOD will be the norm

Ü  CIO’s expected to impact business direction

Ü  Analytics will be key

CIOnet Luxembourg

December 17th, 2012

From a full local CIO to a Group head of IT systems &

The CIO, a major actor of the company strategy

Christophe Pierron – CIO Caceis Bank Luxembourg

17.12.12 > 2 > CIOnet Luxembourg

Agenda

1.  A few words about CACEIS and myself

2.  IT department of CACEIS, and what has changed in 3 years

3.  Some IT trends within CACEIS

4.  My vision of the CIO role and IT as a transformation force for the company

3

A Banking Group dedicated to Asset Servicing PROFILE

CACEIS is Europe's premier depositary and fund administrator, and is focused exclusively on providing innovative asset servicing solutions that generate a competitive advantage for its clients’ business

CACEIS has delivered strong and sustainable financials since its creation. As a result, its two global shareholders grant us the independence to define the most effective strategy to support our clients

CACEIS is among the world's most experienced asset servicing banks when it comes to undertaking seamless operational migrations and successful insourcing of complex functions with related staff

CACEIS has the business agility to give clients a first-starter advantage in today's changing regulatory environment. And by handling clients’ non-core functions in an effective and efficient manner, it helps them focus on generating investor value

Focus Stability

Expertise Experience

4

Key figures

PROFILE

• CACEIS ranks among the top tier of asset servicing providers.

• CACEIS has a strong yet steady growth rate in terms of assets, clients and geographical coverage.

Total headcount

3,300 50% at head office, 50% abroad

Geographical coverage

Presence in 10 countries 80 markets covered

No. 1 Depository Bank in Europe

€650bn

No. 1 Fund Administrator in Europe

€1.1tr

No. 9 Custodian worldwide

€2.3tr As at 31 December 2011

5

Backed by two of the European largest retail banking groups

SHAREHOLDERS

•  No.1 retail banking group in France •  11,600 branches in Europe •  Asset Management, Insurance, Asset

Servicing, Corporate & Investment Banking, Private Banking, Consumer Finance

•  No.2 retail banking group in France •  8,000 branches in Europe •  Insurance, Corporate & Investment

Banking, Asset Management, Private Banking, Private Equity and Specialised Financial Services

Crédit Agricole S.A. S&P Moody's Fitch

A/A-1 A2/Prime-1 A+/F1+

BPCE S&P Moody's Fitch

A/A-1 A2/Prime-1 A+/F1+

€35.1 bn Net Banking Income €70.7 bn Shareholder Equity, Group Share 10.2% Core Tier One Ratio

€23.1 bn Net Banking Income €35.4 bn Shareholder Equity, Group Share 9.1% Core Tier One Ratio

As at 31 December 2011 As at 31 December 2011

6

An extensive product offer for international clients CLIENTS AND PRODUCTS

• Clients benefit from our fully-integrated product offer and high service levels which are standardised across our entities.

Our Clients Our Products

•  Asset managers

•  Insurance Companies

•  Pension Funds

•  Broker-Dealers

•  Banks

•  Central Banks/Sovereign Funds

•  Corporates

•  Middle-Office Services

•  Private Equity, Real Estate & Hedge Funds Services

•  Fund Distribution Services

•  Custody

•  Capital Markets Services

•  Depositary-Trustee

•  Fund Administration

•  Fund Structuring

•  Fund Promotership

•  Risk Analytics

•  Clearing Services

•  Cash Management

•  Issuer Services

•  Online Reporting


A few words about myself…

Christophe Pierron CIO of CACEIS Bank Luxembourg ■ Christophe Pierron, 46 years old, is a software engineer (SupInfo -

Paris) ■ He starts his career in 1989 as a consultant within Arthur Andersen. n  In 1992, he joins the Société Générale Group where he will occupy 4

positions : IT manager of Fimat Tokyo (now NewEdge), group project manager within Fimat Facilities Mgt (Chicago), CIO of Fimatex (now Boursorama) and IT manager of ‘open’ developments for SGSS (Nantes).

■ After a short but intense period with an ‘online banking’ startup, he joins in 2001 Natexis Asset Management and became in 2002 the CIO. In 2005, he’s part of the of the creation of Natixis Investor Servicing (fund administration) as CIO.

■ He joins Caceis early 2008 as CIO of CACEIS Fastnet Paris, and since Sept. 2009 as CIO of Caceis Luxembourg.

■ From 2011, the Quality / Efficiency is under the responsibility of the CIO.


CACEIS IT

>  IT includes business analysts, developers, project managers, architects and application / functional help desk

>  CACEIS has outsourced its IT production and infrastructure

>  About 550 internal / external people, 240 in France and 180 in Luxembourg >  Around 75 000 man days of projects, about a third in Luxembourg

Around 35 000 man days of maintenance / support / enhancement (third in Lux)

>  2 big IT teams (Fr / Lu) that manage the Group information system >  Germany has a local IT (especially for Custody) due to the HVB takeover >  Luxembourg is in charge of the small entities (US, Canada, Belgium, Netherland,

HK)


A lot of changes in 3 years… In 2009, the local CIO was in charge of the full IT of its country with few usage of other systems

2010 >  From a « MOA - MOE » organization to a « Business lines » organization

n  7 business lines (custody, fund administration, customers, …) n  Same organization in France, Luxembourg and Germany

>  Appointment of Group heads of IT business lines (for coordination)

2011 >  Appointment of Group heads of Operational business lines

n  Start of the cooperation for each ‘pair’

2012 >  Reinforcement of the IT Architecture team for the Group (functional & technical)

2010-11-12-13 >  More and more IT expertise centers centralized in France & Luxembourg >  More and more applications convergence to build progressively a Group information system

Now, the local CIO is in charge of a part of the Group information system, he’s a main actor of the Group strategy and represents the local entity (regulators, clients, …)


Current Group Organization

Banking

Dealing

Fund administration

Investment Mgt Services

Clients

Architecture & support

Administration

PISM

Luxembourg Germany France

IT

Infrastructure

Production IT

Cash accounts, accounting, risks, payments, reconcil

Treasury, forex, securities lending

Fund administration

Middle Office, pricing, financial reporting, master data, OTC

Client reporting and portal, billing, CRM

Functional and technical architecture, devlopment environment and tools

IT contracts, Budget

Management of the production and infrastructure providers

Workstation, network, mail, file server, …

Production

Distribution Transfer agent, fund execution

Custody Securities custody & depositary


Some IT trends within CACEIS

>  2015 IT strategy n  Cost reduction (IT & Ops), but (try to) keep the same projects budget n  Spend less on the core business (and streamline it), and spend more on new

products / new clients / innovation n  A strategy per IT business line

>  A new development framework – Case or ‘AGL’ (Palmyra from Vermeg) UML modeling – JAVA code generation – technology is mostly hidden à  Caceis IT must be specialized on the business, not on the technology à  Use of common components / master data – Standardize the developments à  Build progressively the application with the users

>  Agile methodology strongly linked to the process à Collaborative & Interactive : associate from the beginning of the project the different

actors (IT, users, efficiency team) à  Iterative & Agile : splits in phases and prototypes à Based on the process and business needs : start from the process, review / adapt

the process at the same time (if opportunity), and facilitate the change management.


My vision of the CIO role and IT as a transformation force for the company (1/2)

>  More « IT fusion » with the business, than « IT alignement » and it must be true at all levels (CIO with ExCo, IT business line leader with Ops leader, …). The CIO has an important role to make it possible and working.

>  The CIO must be part of the company strategy, in terms of product development and cost reduction.

>  The CIO and IT must be closed to the business and final customers. IT must be a business thinker / innovator.

>  IT must bring value through the technology, its knowledge of the Information System of the company and the business. IT must help the business to innovate and to make it feasible.

>  The CIO must not be afraid of SaaS solutions, and must play an important role to manage the project, integrate the solution and have the right data available.

>  The CIO must take risks in solutions and HR


My vision of the CIO role and IT as a transformation force for the company (2/2)

>  The successful companies are agile : deliver quickly a new product (time to market), win a client, reduce costs quickly and the right ones,… IT is fully part of it and must then also be agile : n  Develop quickly a new application, and in most cases don’t look for 100% perfection

(time to market is more important) n  Design applications to change / evolve n  Innovate (in technology, process) n  Be flexible, and have resources work on the company priorities n  Deliver cheaper

>  The IT department must also be efficient (not only the Ops) >  IT alone doesn’t generate enough cost saving. The Ops process must be

simplified / reviewed, especially when it comes to a new application development or big changes. Once again IT-Business fusion is a must, together we make the best savings and create the best products.

BUSINESS DRIVES IT Bob KNEIP – CEO KNEIP

With offices in Belgium, France, Germany, Luxembourg, Switzerland and the UK, KNEIP serves more than 420 global fund management companies. We help our clients meet their regulatory reporting obligations, while enabling them to provide consistent and accurate fund data and documents to their regulators, clients and data vendors.

WHAT IS CHANGING?

ALWAYS ON BECOMES A STANDARD

THE BLACKBOX BECOMES TRANSPARENT

COMPLEXITY VERSUS SIMPLICITY

BIG DATA LEADS TO ENDLESS OPPORTUNITIES

END-USERS BECOME CREATORS

CUSTOMERS BECOME PARTNERS

SERIAL INNOVATION &

SHORT TIME TO MARKET

IT BUDGET IS ABOUT DOING MORE WITH LESS

TOMORROW’S CIO

Business driven Customer oriented End-user focused

THANK YOU

Informatics

e-

The changing role of the CIO A perspective from the European Institutions

CIONET Luxembourg 17/12/2012 Francisco GARCÍA MORÁN

Director General of Informatics

Informatics

Agenda

•  1. Your business/your sector, your company, your organisation

•  2. About you, your career, your experience as CIO •  3. What happened the last couple of years at the CIO

seat in your organisation ? •  4. Your cook book: the things and the thoughts that

work... your recent experience and vision •  5. now, how do you see the CIO position evolve ? •  6. the Tomorrow's CIO

Informatics

The European Union

•  The result of a number of international Treaties since the ’50s (end of World War II) (primary legislation)

•  A unique economic and political partnership between 27 democratic European countries aimed at:

Creating an ever closer union among the peoples of Europe, with decisions taken as closely as possible to the citizens

Achieving peace, prosperity and freedom for the citizens in a fairer and safer world

Through its competences in a large number of areas, exercised through secondary legislation (which prevails over national law)

Informatics

EU institutions: achieving the aims

The Trea'es set up a number of EU Ins'tu'ons, Agencies and Other Bodies (EUIs):

A “core” of 7 Ins'tu'ons (European Council/GSC, European Commission, EP, CoJ, CoA, ECB) based in Brussels / Luxembourg / Strasbourg / Frankfurt Various layers of other types of EUIs (40-‐80 depending on how they are counted !) scaUered throughout the 27 Member States Suprana'onal character of the EU: the European Commission is the “engine” behind European integra5on.

Informatics

Customs Union

Compe55on

Monetary

Marine ressources

Commercial policy

Interna5onal agreements (AETR)

Human Health

Industry

Culture

Tourism

Educa5on, voca5onal

training, youth and sport

Civil protec5on

Administra5ve coopera5on

internal market social

cohesion agriculture and fisheries (except where exclusive)

environment consumer protec'on

transport trans-‐European networks

energy freedom, security and jus'ce public health research and technological development space development coopera'on humanitarian aid

SUPPORT ACTIONS

EXCLUSIVE COMPETENCES

SHARED COMPETENCES

Informatics

The 2020 Challenges

The 2020 Challenges Economical recovery

Transport efficiency

Jobs, ……

Climate change

Ageing society

Energy consumption

Inclusion

Empowering patients

Security

Europe 2020

Innovation Union

Youth on the move

Digital agenda

for Europe

Resource efficient Europe

Industrial policy for

the globalization era

An agenda for new skills & jobs

European Platform against poverty

Informatics

• own IT team & organisation • Responsible for the delivery of their IT services and the development of their information systems they need

• Varying degrees of IT maturity • Shared services on a voluntary basis

Each Institution

• "Comité Informatique Interinstitutionnel" ensures global coordination on: • ITC infrastructure • Common IT services (e.g. product management, IT architecture, Calls for Tenders & Contracts, etc.)

• Information Systems Hosting • Shared Applications

CII

ICT in the EU • Corporate IT services •  IT Strategy and Coherence • Development of Corporate Information Systems (IS) •  IT Support (2nd level), Corporate Logistic Services, Corporate Contracts and Budget Management

• Development of policy oriented IS on request •  (approx. 450 officials and 850 external staff)

DIGIT

• Management of local IT infrastructure •  IT User Support (1st level) (except those in ITIC) • Development of Information Systems in support of EU operational policies •  (approximately 650 staff)

Local Org.

ICT @EC: Hybrid model

• We deliver digital services to enable EU policies and to support the Commission's internal administration

DIGIT

Informatics

Agenda


•  2. About you, your career, your experience as CIO

•  3. What happened the last couple of years at the CIO seat in your organisation ?

•  4. Your cook book: the things and the thoughts that work... your recent experience and vision

•  5. now, how do you see the CIO position evolve ? •  6. the Tomorrow's CIO

Informatics

Informatics

Agenda






Informatics

and 2. EC – IT Rationalisation 1. The new world out there…

New IT corporate governance structure with more involvement of business

IT Rationalisation @EC

A new « differentiated IT Strategy » taking into account value, risk and cost è economies of scale. IT rationalisation (absorb, integrate, do nothing, best practices) 17 domains started

What has changed in the last years?

Informatics Informatics

2007

Complexity

Level 1:

Simple website

Level 2:

On-‐line government

Level 3:

Integrated government

E-‐Commission 2001-‐2005

2008

Level 3:

Integrated government

2009 2010 3 2015

Lead by example

-‐  EU Policies

-‐  Internal Admin.

E-‐Commission 2012-‐2015 New paradigm

E-‐Commission 2006-‐2010

New strategy

Level 2:

On-‐line government

Informatics

Action plan • Break barriers between EU PA &converging systems • Strengthen operational effectiveness and efficiency • Improve transparency and accessibility of information • Reduce admin burdens & streamline processes • Enhance IT Security • Exploit innovative technologies • Convergence of IT systems

Goals •  reduce costs and create value

• effectiveness & efficiency • business continuity • streamlining administrative processes

•  improve transparency • eliminate digital barriers

Deliver user-‐centric digital services for EU policies and

COM's internal admin. To

Europ

e 20

20

Guiding principles

User-‐centricity

Effectiveness and efficiency

Simplification and proportionality

Security and privacy

Transparency and accessibility

Openness

Reusability

Governance

Focus on corporate priorities

Monitor key investments

Transparency and visibility

Accountability

Informatics

Agenda






Informatics

IF YOU ALWAYS DO WHAT YOU ALWAYS DID, YOU ALWAYS GET WHAT YOU ALWAYS GOT.

I'M POSSIBLE

Informatics

Informatics

Agenda





•  5. How do you see the CIO position evolve ? •  6. The Tomorrow's CIO

Informatics

Un professionnel capable de gérer un boîte IT qui a une très bonne connaissance du business combiné avec une excellente expertise technique afin de pouvoir jouer un rôle stratégique permettant à l'organisation de développer des solutions innovatrices facilités par la technologie.

Informatics

e-

Thank You

EgonZehnderInternational



CIONET Luxembourg 17 December 2012 Pierre Cattoir

2

Objective

This presentation shares our perspective based on our client work.

Its real purpose is to serve as a thought starter to exchange ideas & points of views afterwards.

© 2012 Egon Zehnder International 3 © 2011 Egon Zehnder International 3

We have defined a set of core competencies to describe positions and appraise management (1/2)

Core Competencies

Business Leadership

Thought Leadership

People & Organisation Leadership

•  Strategic Orientation •  Market Knowledge

•  Results Orientation •  Customer Focus

•  Collaboration & Influencing •  People Development •  Team Leadership •  Change Leadership

© 2012 Egon Zehnder International 4 © 2011 Egon Zehnder International 4

We have defined a set of core competencies to describe positions and appraise management (2/2)

Logic of the Competency Scales

1 23

45

67

Basic management competence

Increasing stretch – building towards

world class competence

Transformational, step change,

visionary competence

Level 3 Level 2 Level 1

•  understand •  try •  interact •  willing •  make no

mistakes •  respond

•  apply •  meet •  collaborate •  doing •  take on

ownership •  be involved

•  improve •  exceed •  inspire •  delegating •  take risks •  pro active

© 2012 Egon Zehnder International 5

CIO roles

Staff Level C-level

Functional Head CIO

Transformation CIO

Business Strategist CIO

Focus on IT operations excellence

Focus on partnering with the business

and process

transformation

Focused on enterprise strategy

innovation & differentiation

IT Staff IT Managers


Staff Level C-level

Functional Head CIO

Transformation CIO


Evolution of critical CIO competencies


Strategy Orientation Change

Leadership Collaboration & Influencing

Team Leadership

Functional Competence

Results Orientation

Market Knowledge

Staff Level C-level

Functional Head CIO

Transformation CIO


Evolution of critical CIO competencies

8

HR people who have worked in line roles score higher on each individual leadership competency


The real science of executive search

“Of course, all the successful people I have met are highly intelligent. They are also hard workers. They believe in preparation. They relate very well to others…

But if you ask me to point to the most important reason for their success, I believe it is… … “

Dr. Egon P.S. Zehnder

201212 the changing role of the cio

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