microsoft executive session changing role of the cio david boyles cxo technology advisor microsoft...

Microsoft Executive Session

Changing Role of the CIO

David BoylesCxO Technology Advisor

Microsoft Australia & New Zealand


Agenda: Role of the CIO

• Changing Role of IT: Positives & Negatives• CIO Role in Transition• Skills of the new CIO• Frameworks for Success*• Outcomes*

(*Note: Included in deck but not presented tonight)


Changing Role of IT: Positives

• Fact: The market capitalisation of most public companies is only 20-25% tangible (on balance sheet) and 75-80% intangible (B. Lev, 2001). Intangible assets typically consist of repeatable processes - usually software on technical infrastructure (IT), people, brand, and intellectual property.

• Fact: In most organisations, end user sales/service continues to shift from people to fully automated channels (IT). For example, global retail internet spend was approx. 30B USD in 2000 and is expected to break 175B in 2005. In services, many banks would be at or above 75% of all customer transactions totally automated. Dell has probably automated over 90% of all customer interactions. Pick your organisation or industry, with rare exceptions, the trend is the same.

• Fact: In many organisations, employee services and processes are shifting to fully automated channels (IT). HR management, expense management, procurement, and even training are now fully automated in many companies, with the employee utilising the function entirely via “self-service”.


Changing Role of IT: Negatives

• Fact: Many (or even most) IT projects are perceived to be failures. Depending on which study results you prefer to believe, somewhere between 15% and 60% of projects deliver more or less what was promised. Change management issues are cited most frequently as the cause of failure, including: leadership/sponsorship, lack of stakeholder involvement and governance/risk management.

• Fact: Most organisations exhibit significant governance weaknesses in key areas such as IT strategy, IT policy and information security (Various studies by E&Y, CSI/FBI, IDC, etc.). Information security and other key IT strategy topics are simply not making the Board/CEO agenda.

• Opinion: Most organisations view IT as a “shared service” with the same level of importance as property management or procurement. In reality, you can turn off most shared services for a day or two and no negative outcome eventuates. However, if you turn off IT at most organisations, business comes to a total standstill. Is IT “business core” or not? Should IT be centre stage in Board/CEO strategy discussions or not?


Functional Specialist to ???

““Old” RoleOld” Role

•Architecture, Architecture, Planning & PolicyPlanning & Policy•Solutions (SW) Solutions (SW) DevelopmentDevelopment•Infrastructure Infrastructure ManagementManagement•IT Leadership & IT Leadership & People People DevelopmentDevelopment

““New” RoleNew” Role•Architecture, Architecture, Planning & PolicyPlanning & Policy•Solutions (SW) Solutions (SW) DevelopmentDevelopment•Infrastructure Infrastructure ManagementManagement•IT Leadership & IT Leadership & People People DevelopmentDevelopment•Business Strategy, Business Strategy, Innovation, & Innovation, & Change Change ManagementManagement•Business Business Leadership & Leadership & People People DevelopmentDevelopment

““Split” RolesSplit” Roles

•Solutions (SW) Solutions (SW) DevelopmentDevelopment•Infrastructure Infrastructure ManagementManagement•IT Leadership & IT Leadership & People People DevelopmentDevelopment

•Architecture, Architecture, Planning & PolicyPlanning & Policy•Business Strategy, Business Strategy, Innovation, & Innovation, & Change Change ManagementManagement•Business Business Leadership & Leadership & People People DevelopmentDevelopment

CTOCTO

CIOCIO


“Traditional” CIO Skills

• Leadership• Project management• Vendor and sourcing management• Time management & prioritisation• Development methodologies• Legacy environments• Environments of the future (Web services/SOA):

– Windows, .NET, C#, Active Directory, XML– Linux, Java (JBoss-Weblogic-Websphere), XML

• Data Centre Operations• Networks (wireless and wired)• DRP/BCP (BU and IT)• Info Security, as relates to IT• Componentisation & reuse• Data Warehousing, Data Marts


“Newish” CIO Skills

• All of the “traditional” skills, PLUS:

– Vision– Aspirational and/or scenario planning– Business strategy & analysis– Change management– Business judgment, and the courage to implement decisions– Reengineering & Business Process Modelling (BPM)– Team building– Communications & influencing– Public, employee, and customer relations– Continuous improvement: TQM, CMM, inspection, etc.


Discussion

Questions or comments?

Note: Frameworks & Outcomes Sections Follow


CIO Frameworks For Success

• Structured IT Excellence Model• Clear Roadmap (explicitly links all IT activities

to delivery of business capabilities)• Leadership & Business Relationships*• People Practices*• Infrastructure*• Processes*

*Note: These are part of the Excellence Model.


CIO Frameworks for Success: IT Excellence Model

IT excellence & the delivery of business capabilities is the result of a structured and comprehensive program in seven key areas.

Leaders

hip

& G

overn

ance

People:Selection, development,

work environment

Strategic Partnerships:Key Suppliers

Critical Processes: Architecture, Strategy & Planning;

Project Management; Software Development; Operations Management

Infrastructure: The “Dial Tone” of the Organisation

Software: Business Applications& related intangibles

Information S

ecurity

Excellence Model Copyright Microsoft & Infosys, 2004


CIO Frameworks for Success:

Roadmap to Deliver Business Capabilities

Short term deliverables (<6 months), eg:– Review of needed business capabilities – Leadership team assessment, appointments & commitments– Cost targets– Quick hits: business capabilities, performance improvements, etc.– Top ten projects review– Vendor contracts review– Information Security assessment

Longer Term Deliverables (6-60 months), eg:– Business capabilities to be delivered, mapped to It project plans– Leadership & People frameworks, inc. development plans– Sourcing strategy & practice: vendor mgmt, quality, & costs– Governance models: business alignment & stakeholder involvement– Information Security improvements: BCP, DRP policies, frameworks, practices– Software Development policies, frameworks, practices– Project Management policies, frameworks, practices– Architectural roadmap– Applications & infrastructure SWOT analysis



Leadership & Business Relationships

• Lead & govern proactively. Set up stakeholder governance structures early on.

• Use open, fact-based communication to build trust. Solicit feedback.

• Understand future business needs and build a strategic roadmap that delivers. Share the roadmap widely and frequently. Deliver.

• Provide accurate and detailed costs for all IT services.

• Publish performance metrics based on agreed standards.

• Provide industry benchmark comparisons of costs and quality.


• Build a first rate IT team. Use a rigorous hiring model.

• Define and publish your people & leadership principles (team member and leadership values and behaviour defined). Don’t tolerate exceptions.

• Use “Open Book” management.• Deploy segmented development programs.

Share development opportunities with business staff, eg project management training.

• Train everyone on communications, teaming & quality techniques.


People Practices


• Identify, benchmark and set performance goals for all key processes (eg. project management; architecture, strategy & planning; solutions development; operations management).

• Actively deploy continuous improvement tools and international standards: TQM, CMM, Prince2 or PMI, ITIL, Inspection Processes, ISO.

• Treat software development as engineering, use rigorous methodologies to prevent errors (find code errors via TQM/inspection processes versus back end testing).

• Automate wherever possible for high quality, repeatable outcomes.


Processes



Infrastructure

• Utilise “end to end” business process outcomes for reliability measures, not technical components.

• Periodic SWOT analysis to discover single points of failure, bottlenecks, and business/user irritation. Pay particular attention to the desktop in “knowledge worker” environments.

• Rationalise and standardise platforms to improve reliability and reduce costs.

• Utilise component-based architecture for simplicity of installation and maintenance.


Some Outcomes:Driven or Supported by IT Excellence

• Desktop TCO reduced from AUD4000 to just over AUD2000 per annum

• Employee satisfaction from 46% to 80%• Cost to income ratio (financial institution) from mid-

sixties to mid-forties• Reduction of telecommunications expense by 10%+• 90% reduction of Severity 1 errors going into

production• CMM Level 5 Certification (Software TQM)


Thanks, Any Questions?

Note: The opinions expressed herein are my own, based on experience in the CIO/COO role, information provided by CIO colleagues, and publicly available fact-based research.

microsoft executive session changing role of the cio david boyles cxo technology advisor microsoft...

Documents

property management

hr management

expense management

positives negatives

governancerisk management

management issues

old role architecture

positives fact