the evolution of enterprise it
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The Evolution Of Enterprise IT. Abbie Lundberg Editor in Chief, CIO. CIO Archetypes: Context Matters. BUSINESS LEADER Straddling the business-technology divide, this archetype relies on communication and collaboration to get the job done. INNOVATION AGENT - PowerPoint PPT PresentationTRANSCRIPT
The Evolution
Of Enterprise IT
Abbie LundbergEditor in Chief, CIO
CIO Archetypes: Context MattersCIO Archetypes: Context Matters
INNOVATION AGENTStrategist who drives business change–and leaves the details to others.
OPERATIONAL EXPERTRolls up their sleeves and meets the challenges of the business head on.
TURNAROUND ARTISTRelishes the challenge of fixing broken IT situations.
BUSINESS LEADERStraddling the business-technology divide, this archetype relies on communication and collaboration to get the job done.
The Business LeaderThe Business Leader
NEAL GUERNSEY, CIO, Feld Entertainment
61% spend significant time interacting with CXOs and
business people – the most of any archetype
32% focus on budgeting and compliance
23% personally manage IT crises, fewer than anyother archetype
56% consider the ability to lead and motivate staff atop personal skill
3% say innovation is a dominant part of their role, least of all archetypes
DEFINITION: Business Leaders put a premium on understanding business processes; they describe communication, leadership and management skills as core competencies. Their priorities are aligning IT and business goals, using technology to improve business processes, and controlling costs.
The Innovation AgentThe Innovation Agent
JANET SHERLOCK, CIO, Calico Corners
87% believe that IT should proactively envisionbusiness opportunities
83% work for companies w/less than $1 billion in revenue
77% are members of the executive committee
70% say strategic thinking and planning is their most
important personal skill
55% report to their CEO
53% have worked in sales or marketing
DEFINITION: Innovation Agents put the highest emphasis on strategic thinking and believe strongly in IT’s ability to drive new business initiatives. They are very likely to be members of the executive committee that reports to the CEO, and they are most often found in smaller and midsize companies.
The Operational ExpertThe Operational Expert
CHRISTINE LEJA,CIO, SouthwesternIllinois College
23% report to the CEO, the lowest of any archetype
$135,000 average salary makes them the lowest paid
46% spend time managing IT crises
64% share IT ROI accountability with the business–more than any other archetype
69% have budgets of less than $5 million
DEFINITION: Operational Experts place a huge emphasis on their project management and execution skills, and their IT department's primary mission during the past year was to cut costs. These CIOs thrive in enterprises where the pressure to deliver IT systems on time, under budget and with full user acceptance is high.
The Turnaround ArtistThe Turnaround Artist
JAY ROLLINS,CIO, Churchill Downs
3.9 years is the shortest tenure of all the archetypes
$204,000 is the biggest paycheck of any archetype
58% cite their ability to influence change in others as a top personal skill
58% are directly accountable for IT ROI
$4.3 billion in average revenue makes their companiesthe biggest for any archetype
DEFINITION: Turnaround Artists are hired guns and risk takers who see themselves first and foremost as agents of change. They've got deep experience in IT and have the ability to come into a chaotic situation, ascertain what the business needs most, recharge a beaten-down staff and start piling up the wins—quickly.
Archetypes by the NumbersArchetypes by the Numbers
IT Budget as a Percent of Revenue
Overall Innovator Operational Turnaround Business Leader
7.4% 10.8% 5.7% 6.9% 6.2%
Innovators Get the Budget
CIO Salaries
Overall Innovator Operational Turnaround Business Leader
$185,200 $166,500 $134,900 $204,167 $184,600
Turnaround Artists Get the Cash
A Seat at the TableA Seat at the Table
CEO41%
COO14%
CFO24%
CorporateCIO5%
Other15%
Yes68%
No32%
REPORTING STRUCTUREMEMBER OFEXECUTIVE COMMITTEE
Who Talks to the Boss?Who Talks to the Boss?
Reporting Relationships
Overall Innovator Operational Turnaround Business Leader
CEO 41% 55% 23% 47% 46%
COO 14% 11% 21% 18% 8%
CFO 24% 28% 31% 21% 26%
Corp. CIO 5% 0% 5% 3% 6%
Other 15% 6% 21% 11% 14%
The Perils of Reporting The Perils of Reporting to the CFOto the CFO
TIME SPENT ON...REPORTING STRUCTURE
CIOs WHO REPORT TO CFOsHAVE ½ THE BUDGET OF CIOsWHO REPORT TO CEOs
The Perils of ReportingThe Perils of Reportingto the CFOto the CFO
CHANCE OF BEING PART OF THE EXECUTIVE COMMITTEE
WhenReporting
to theCOO
WhenReporting
to theCEO
WhenReporting
to theCFO
HURDLES
Today’s Core Today’s Core CompetenciesCompetencies
Stakeholder Alignment: Knowledge & ActionsStakeholder Alignment: Knowledge & Actions
CIO Role: Leadership Skills & AccountabilityCIO Role: Leadership Skills & Accountability
Communication:Communication:How & WhoHow & Who
Where the Gaps AreWhere the Gaps Are
Innovation RulesInnovation Rules
What impact do you expect IT will have on the business in the year ahead? 2007 2006 2005 2004
Enable business innovation 1 3 3 3
Reduce business costs 2 1 1 1
Improve customer satisfaction 3 2 4 4
Create competitive advantage 4 5 2 5
Improve security/risk management 5 4 n/a n/a
Enable new revenue streams 6 8 7 10
Grow existing revenue streams 7 7 6 8
Enable regulatory compliance 8 6 5 9
Enable global expansion 9 9 8 6
Supply chain automation/visibility 10 10 9 7
IT PhilosophyIT Philosophy
IT should supportand enable businessinitiatives36%
IT should proactively
envision business possibilities and
initiate with technology
64%
Are CIOs Spending Time on Are CIOs Spending Time on The Right Things?The Right Things?
THE DAILY GRINDShmoozing, systems and staffing occupy CIOs’ time. But a lack of interaction with customers and partners (#12), given the priorities of the business, should be of concern.
Collaboration Is KeyCollaboration Is Key
Source: IBM Global CEO study 2006Source: IBM Global CEO study 2006
IT is co-leading
innovation initiatives
with business executive sponsors
68%
IT is leading innovation initiatives across the company19%
IT is playing an implementation role only13%
Innovation Is a Team SportInnovation Is a Team Sport
Key Personal Skills for CIO Success?Key Personal Skills for CIO Success?
0%10%20%30%40%50%60%70%80%
Communic
ation
s
Strate
gy
Lead
ing s
taff
Opera
tions
Change
mgm
t
Busin
ess k
nowled
ge
Negotia
tion
Tech
knowled
ge
Tech
prof
icienc
y
Primary Strength as a CIOPrimary Strength as a CIO
Egon Zehnder InternationalEgon Zehnder InternationalNine Core Competencies For Executive ManagementNine Core Competencies For Executive Management
1.0
2.0
3.0
4.0
5.0
6.0
7.0Results Orientation
Market Knowledge
Commercial Orientation
Strategic Orientation
Collaboration & InfluencingPeople Development
Team Leadership
Change Leadership
Customer Focus
EgonZehnder
International
CIOs: Good (50-85CIOs: Good (50-85thth percentile) percentile)
2.5
3.0
3.5
4.0
4.5
5.0
5.5Results Orientation
Market Knowledge
Commercial Orientation
Strategic Orientation
Collaboration & InfluencingPeople Development
Team Leadership
Change Leadership
Customer Focus
EgonZehnder
International
(n = 25,000 execs across all functions)
CIOs: Good vs. OutstandingCIOs: Good vs. Outstanding
2.5
3.0
3.5
4.0
4.5
5.0
5.5
Results Orientation
Market Knowledge
Commercial Orientation
Strategic Orientation
Collaboration & InfluencingPeople Development
Team Leadership
Change Leadership
Customer Focus
Outstanding (85th percentile) Good (50-85th percentile)
EgonZehnder
International
(n = 25,000 execs across all functions)
““Good” CIOs vs. “Good” CEOs Good” CIOs vs. “Good” CEOs (50-85(50-85thth percentile) percentile)
2.5
3.0
3.5
4.0
4.5
5.0
5.5Results Orientation
Market Knowledge
Commercial Orientation
Strategic Orientation
Collaboration & InfluencingPeople Development
Team Leadership
Change Leadership
Customer Focus
CEO CIO
EgonZehnder
International
““Good” CIOs vs. “Good” CFOs Good” CIOs vs. “Good” CFOs (50-85(50-85thth percentile) percentile)
2.5
3.0
3.5
4.0
4.5
5.0
5.5Results Orientation
Market Knowledge
Commercial Orientation
Strategic Orientation
Collaboration & InfluencingPeople Development
Team Leadership
Change Leadership
Customer Focus
CIO CFO
EgonZehnder
International
CEO/CIO Outstanding (85CEO/CIO Outstanding (85thth percentile) percentile)
2.5
3.0
3.5
4.0
4.5
5.0
5.5
Business Results Orientation
Market Knowledge
Commercial Orientation
Strategic Orientation
Collaboration & InfluenceingPeople Development
Team Leadership
Change Leadership
Customer Focus
CEO CIO
EgonZehnder
International
(n = 25,000 execs across all functions)
AmbitionsAmbitions
If you could move into another role inside or outside your company, what would it be?
CIO at a larger company 38%
Remain in current CIO role as long as possible 20%
COO 16%
CEO 8%
Consulting 7%
Line of business head 5%
CFO 1%
Into the FutureInto the Future
The “Future-State CIO” ProjectThe “Future-State CIO” Project
Mission Statement» To clearly articulate the future role of the CIO at its
highest value and most strategic potential and to advance both business and the community of CIOs toward this potential
Chaired by …» Louis Ehrlich, CIO and VP of Global Strategy, Chevron
Corporation
» Marc West, CIO and General Manager of Consumer Markets, H&R Block International
The “Future-State CIO” ProjectThe “Future-State CIO” Project
Three Phases –» Describe – Articulate the skills required to function as a co-
leader of the business
» Measure* -- Create benchmarking tools to measure the skills of individual CIOs and businesses
» Advance – Create development and outreach programs to help advance the CIO community and business towards full potential
* Strategic partnership with Egon Zehnder International to adapt their Management Assessment Methodology to this project
The Future-State CIO ModelThe Future-State CIO Model
1 - Functional Head Operational Excellence
2 - Transformational Leader Alignment and Business Process Transformation 3 - Business Strategist
Enterprise Strategy & Competitive Differentiation
“Executive Competency Index”
“Business Readiness Index”E
xpec
tati
on
/Cap
abili
ty G
ap
85 th
Pe
rce
ntile
Allo
catio
n o
f CIO
’s T
ime
025 50 75
100
1/4
1/2
1/4
Advancing the conversation into the Advancing the conversation into the Business CommunityBusiness Community
(Page B5)
"Half of my job is now product innovation and understanding market opportunities," says Mr. West, 47. In contrast, at his previous CIO job, 75% of his time was devoted to supporting tech systems, he says.
"Half of my job is now product innovation and understanding market opportunities," says Mr. West, 47. In contrast, at his previous CIO job, 75% of his time was devoted to supporting tech systems, he says.
What a difference a day makesWhat a difference a day makes
1 - Functional Head Operational Excellence
2 - Transformational Leader Alignment and Business Process Transformation 3 - Business Strategist
Enterprise Strategy & Competitive Differentiation
Allo
catio
n o
f CIO
’s T
ime
025 50 75
100
Exp
ectation
Cap
ability
Expectation-Capability Gap
Expectation-C
apability Alignm
ent
Advancing the conversation into the Advancing the conversation into the Business CommunityBusiness Community
"Last September, to reflect how his job had spilled beyond tech support, Chevron gave Mr. Ehrlich the additional title of vice president of strategy and services. He has now ratcheted back his supervision of tech systems to just 10% of his time, instead delegating those responsibilities to a subordinate."
"Last September, to reflect how his job had spilled beyond tech support, Chevron gave Mr. Ehrlich the additional title of vice president of strategy and services. He has now ratcheted back his supervision of tech systems to just 10% of his time, instead delegating those responsibilities to a subordinate."
Aligning the business to your capabilitiesAligning the business to your capabilities
1 - Functional Head Operational Excellence
2 - Transformational Leader Alignment and Business Process Transformation 3 - Business Strategist
Enterprise Strategy & Competitive Differentiation
Allo
catio
n o
f CIO
’s T
ime
025 50 75
100
Cap
ability
Exp
ectation
Here’s the challenge: What does this mean for the Here’s the challenge: What does this mean for the profession?profession?
"The CIO title is misused, frankly," says Mr. Ehrlich. If all a CIO does is oversee tech systems, "they should be named a tech manager. A CIO should be enabling a business to grow."
"The CIO title is misused, frankly," says Mr. Ehrlich. If all a CIO does is oversee tech systems, "they should be named a tech manager. A CIO should be enabling a business to grow."
Of IT:
Do a rotation in another part of the business.
The Office:
Go work with your customers, and encourage your team to do the same.
Your Company:
Collaborate with business partners and customers on new innovations.
The Country:
Do a tour of duty at one of your company’s international operations.
Advice for CIOs: Get Out…!Advice for CIOs: Get Out…!
What This Means for You if You…What This Means for You if You…
…Work for a CIO» If you’re in a purely technical position, hone skills» If you’re a manager, you will become the bridge
…Sell to CIOs» Know what kind of CIO you’re dealing with, and what
their context is» Learn your customer’s business