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Elevated Impact + Expanded Mandates + Evolved Titles Until recently, Chief Information Officer (CIO) was the predominant title for top technology executives; however, that is changing. Our research shows that a full third of companies within the Fortune 500 have adapted the title to reflect the broader skillsets and span of responsibility expected of this new class of executive. Oſten, these titles become “hybrids,” such as Chief Information and Digital Officer. Further, this trend is not simply a large company phenomenon; we’ve witnessed a similar paern at midcap portfolio companies. Private equity firms are also introducing these new roles and titles to support the transformation agendas within their portfolios. CTO CDO CIO/CTO CIO/Digital CTO/Digital 43% 24% 4% 16% 13% BEYOND THE CIO: NON-CIO TITLES OF TECH FUNCTIONAL LEADERS IN FORTUNE 500 ORGANIZATIONS The following mandates & desired traits are commonly included in role descriptions: THE NEW ROLE Reports to the CEO Capable of bringing outside-in innovation and disruption with a transformation mindset Single point of accountability for “all things tech,” including legacy platforms as well as new tech/data/digital ones P&L orientation Business acumen and customer centricity Strategic visionary Collaborative and communicative CROSSING THE DIGITAL DIVIDE: THE URGENT AND IMMEDIATE IMPERATIVE Redefining the Mandate and Role of Your Top Technology Executive CEOs of legacy companies are under tremendous pressure to think differently about their organizations’ technology functions. As future-focused enterprises begin to shed outdated operational and organizational models, many are increasingly self-identifying as “technology companies,” regardless of primary industry. And in every industry and every region, COVID-19 has forced leaders to rapidly accelerate and evolve their approaches to these transformation strategies. The most progressive leaders realize that a fundamentally different kind of technology executive is now needed to head these efforts. CEOs who view technology as a platform, rather than infrastructure, appreciate that it is critical to align technology capabilities under one leader who is responsible for advising the entire executive commiee on transformation and change. The mandate of this modern technology leader includes accountability for the entirety of the organization – from the outer reaches of customer interactions to the reformation of core infrastructure.

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Elevated Impact + Expanded Mandates + Evolved TitlesUntil recently, Chief Information Officer (CIO) was the predominant title for top technology executives; however, that is changing. Our research shows that a full third of companies within the Fortune 500 have adapted the title to reflect the broader skillsets and span of responsibility expected of this new class of executive. Often, these titles become “hybrids,” such as Chief Information and Digital Officer. Further, this trend is not simply a large company phenomenon; we’ve witnessed a similar pattern at midcap portfolio companies. Private equity firms are also introducing these new roles and titles to support the transformation agendas within their portfolios.

CTOCDO

CIO/CTOCIO/Digital

CTO/Digital

43%24%

4%16%

13%

BEYOND THE CIO: NON-CIO TITLES OF TECH FUNCTIONAL LEADERS IN FORTUNE 500 ORGANIZATIONS

The following mandates & desired traits are commonly included in role descriptions:

THE NEW ROLE

Reports to the CEO

Capable of bringing outside-in innovation and disruption with a transformation mindset

Single point of accountability for “all things tech,” including legacy platforms as well as new tech/data/digital ones

P&L orientation

Business acumen and customer centricity

Strategic visionary

Collaborative and communicative

CROSSING THE DIGITAL DIVIDE: THE URGENT AND IMMEDIATE IMPERATIVE

Redefining the Mandate and Role of Your Top Technology ExecutiveCEOs of legacy companies are under tremendous pressure to think differently about their organizations’ technology functions. As future-focused enterprises begin to shed outdated operational and organizational models, many are increasingly self-identifying as “technology companies,” regardless of primary industry. And in every industry and every region, COVID-19 has forced leaders to rapidly accelerate and evolve their approaches to these transformation strategies. The most progressive leaders realize that a fundamentally different kind of technology executive is now needed to head these efforts.

CEOs who view technology as a platform, rather than infrastructure, appreciate that it is critical to align technology capabilities under one leader who is responsible for advising the entire executive commi�ee on transformation and change. The mandate of this modern technology leader includes accountability for the entirety of the organization – from the outer reaches of customer interactions to the reformation of core infrastructure.

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Past, Present & Future Models:To the detriment of transformation efforts, organizational structures have often failed to evolve in alignment with the development of new functions. A common challenge during these transformations is friction created when companies add new capabilities in digital and data that report into the CEO, but circumvent the CIO. While these direct linkages may have been effective during the early days of digital adoption, the maturing of data and digital technologies has made fluency in newer platforms a must for today’s technology executives. Therefore there is tremendous need for a singular leader who can integrate and align new and old platforms in order to support the business in a seamless

‘omnichannel’ way (see below). To date, the companies that have adopted this approach tend to be farther along the transformation curve. We believe that creating this structure is a key catalyst for those trying to keep up.

SELECT FORTUNE + FTSE 100 EXAMPLES OF NON-CIO TITLES:

Company Role, Title and Remit Profile

Global Chief Digital Information OfficerBuilding a customer connected organization

Ratnakar Lavu, previously Chief Information & Technology Officer for Kohl’s Department Stores

Head, Technology, Operations & Firm ResilienceEvolving from financial services to fintech

Rob Rooney, previously the Head of Morgan Stanley’s Technology Unit globally

Chief Digital & Information OfficerBringing data and analytics to real estate

Chandra Dhandapani, previously CIO and Digital Transformation Leader, Financial Services Division for Capital One

Chief Technology & Development OfficerDriving global omnichannel platforms

Suresh Kumar, previously VP and GM, Google Display + Video Ads, Apps and Analytics for Google

CIO (Group) & EVP Optum Technology Leveraging technology and data to improve outcomes

John Santelli has been UnitedHealth’s Chief Information Officer since 2007

Chief Digital & Technology OfficerEnabling the value chain from discovery to go-to-market

Karenann Terrell, previously Chief Information Officer for Walmart

Chief Information & Digital OfficerBuilding a smart, IoT and customer-connected platform

Adriana Karaboutis, previously EVP Technology, Business Solutions & Corporate Affairs for Biogen

SVP, Chief Digital OfficerMoving from product to software and services

Vince Campisi, previously Chief Operating Officer of GE Digital

Chief Digital OfficerTransitioning to a true omnichannel approach

Barbara Martin Coppola, previously Chief Marketing Officer for Grubhub

THE PAST THE FUTURETHE PRESENT

Aligned Tech,Digital, Data

functions

LegacyTechnology

Function

Data, Analytics, and AI

DigitalApplications

Legacy IT andInfrastructure

CIO

CEO CEO CEO

THE TOPTECHNOLOGY

OFFICERDATADIGITALIT

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Repositioning Current LeadersHow should current technology leaders reimagine both their current organizational structure and individual career path?

ɳ Recognize that both the organization and the CEO need the tech leader to be a strategic business partner capable of taking a broader, more aligned view of the organization.

ɳ “Traditional” technology leaders need to seek opportunities to become increasingly strategic and customer-centric.

ɳ Digital leaders who want to move into the top job need to understand core technology and platforms, not just front-end strategy. The best “new” technologists can create a bridge across the entire platform.

ɳ In some cases, due to their skill sets, non-technical CEOs of acquired tech companies have become the senior-most tech executive in the organization with P&L responsibilities, not just functional alignment.

Questions CEOs should be asking:As the role of the top technology executive rapidly develops into that of a business leader and enabler, we expect to see a continued evolution of the title, elevation of the mandate and increased opportunity for impact. CEOs can leverage this leadership-driven shift to redefine their organizations, empower their teams and attract new kinds of senior talent – all of which are ultimately critical elements required to move transformations forward. These are the questions they should be asking themselves:

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What is the “future state” of our business and what roles do technology and data need to play to support a more customer connected and agile business?

How can we drive be�er engagement from our board, executive team and technology organization to move from an IT mindset to an agile/so�ware engineering mindset across the organization?

Do we have a single leader who can manage a seamless approach across all new and legacy platforms? If not, is it time to rethink the mandate and role of our “Top Technology Officer”?

Does our technology organization have the correct structure and capabilities? Are our next-generation technology and data platforms aligned with our core infrastructure and IT groups?

Do we have a “modern” leader in each of our core technology functions (infrastructure/cloud, customer-facing applications, data analytics, AI, security) who reports to the top technology executive? Are we maximizing the potential from our current team and through strategic new hires?

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About Russell Reynolds Associates

Russell Reynolds Associates is a global leadership advisory and search firm. Our 470+ consultants in 46 offices work with public, private and nonprofit organizations across all industries and regions. We help our clients build teams of transformational leaders who can meet today’s challenges and anticipate the digital, economic and political trends that are reshaping the global business environment. From helping boards with their structure, culture and effectiveness to identifying, assessing and defining the best leadership for organizations, our teams bring their decades of expertise to help clients address their most complex leadership issues. We exist to improve the way the world is led.

www.russellreynolds.com

© Copyright 2020, Russell Reynolds Associates. All rights reserved. This material may not be copied, reproduced or redistributed, in whole or in part, without the prior express written consent of Russell Reynolds Associates.

ART HOPKINS

Art Hopkins advises clients within the Technology Sector, on a range of CTIO, Digital, Data, CTO roles, and with a personal interest and focus on the changing role of Top Technology Exec. He partners with organizations across multiple sectors to address leadership and talent issues related to transformation and digital / technology enablement. He is based in Atlanta.

TUCK RICKARDS

Tuck Rickards heads the firm’s San Francisco office and leads the Technology Officers Practice. He is also a core member of the Board & CEO Advisory Partners, where he focuses on transformational leadership issues ranging from CEO succession to board alignment.

AUTHORS

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