Emerging Role Of Cio As A Strategy Execution Officer

CA2 - IT Governance

Emerging Role of CIO (as a Strategy Execution Officer)

Presentation byAkbar Husein,Balaji Balasubramanian, Kartik Mahadevan, Prateek Mehra,Saranya Ranganathan

Chief Information Officer

‘CIO ? Career Is Over’.– It’s an old joke, which might have raised a smile thirty years ago,

but which is now as outdated as flared trousers and brick-sized mobile phones. And even in the old days, it had a bitter edge to it.

Evolution of CIO Role

1970 – First Appointed. Financial Systems, Order Processing

1980 – Data Explosion, Personal Computers, Personal Productivity

1990 – ERP CRM, SCM, BI, eBusiness, Y2K, Internet

2000 – Mobile Devices, ERP Optimization, Business ROI, BI

2008 – Competitive Strategy, Business ROI, Process Improvement, Globalization, Security

A Historical Perspective – Where has the focus turned over the years…

The CIO Title Grows

What is in a Name?

A lot, especially when "chief" is in the title. Today, more heads of IT sport the CIO title than ever before, while the old-fashioned "director" has fallen out of favor.

2004 2007 2008

CIO 49% 50% 60%

CTO 3% 6% 4%

VP / IT 13% 13% 11%

Director 29% 23% 18%

Other 6% 8% 6%

Agenda• What are the emerging archetypes for CIOs and how do they spend their

time?• How do senior non-IT executives think CIOs should allocate their time?• Does every company need an Strategy Execution Officer (SEO) to ensure

implementation and effective use of enterprise platforms?• What is the appropriate scope for an SEO role?

CIO Archetypes (The State of CIO in 2007)

Business Leader Turnaround Artist

Operational Expert Innovation Agent

Business Leader. Priorities are aligning IT and business goals.

Operational Expert. Primary mission is to cut costs.

Innovation Agent. Focus on ITs ability to drive new business initiatives.

Turnaround Artist. Risk-taking agent of change.

Operational Expert

Business Leader Straddling the business technology divide, this archetype relies on

communication and collaboration to get the job done.

Put a premium on understanding business processes

Aligning IT and business goals

Use technology to improve business processes, and controlling costs

Interacting with CXOs and business people

Focus on budgeting and compliance

Support managing IT crises

Consider the ability to lead and motivate staff

Innovation AgentStrategist who drives business change–and leaves the details to others.

Considers IT should proactively envision business opportunities

Members of their company’s executive committee

Stress Strategic thinking & planning is an important personal skill

Have worked in sales or marketing

Operational ExpertRolls up their sleeves and meets the challenges of the business head on.

Managing IT crises

Share IT ROI accountability and cut IT cost

Improve IT talent & Operations

Project Management & Execution

Deliver IT Systems on Time & Budget

Turnaround ArtistRelishes the challenge of fixing broken IT situations.

Shortest tenure of all the archetypes

Biggest paycheck of any archetype

Influence change in others

Directly accountable for IT ROI

CIO Types (The State of the CIO in 2008)

Function Heads

Transformational Leaders

Business Strategists

Function Heads. Focused on running the IT organization, achieving IT operational excellence and providing reliable, effective services.

Transformational Leaders. Focused on creating change for their enterprise through process transformation and a close partnerships with business operations.

Business Strategists. Focused on driving strategy for competitive advantage through activities that face across the enterprise and externally.

Managing IT crises Developing IT talent

Improving IT operations Improving system

performance Security management Budget management

Functional Head

Redesigning business processes

Aligning IT initiatives and strategy with business

goals/strategy Cultivating the IT/business

partnership Leading change efforts

Implementing new systems and architecture

Mapping IT strategy to overall enterprise strategy

Transformational Leader

Developing/refining business strategy

Understanding market trends and developing external

customer insight Developing business

innovations Identifying opportunities for competitive differentiation

Reengineering or developing new sales and distribution

channels

Business Strategist

CIO’s Allocate Time Across Role Types

37%

51%

12%

Distribution of CIO Role

Current and Future Distributions0

25 50 75100

CurrentDistribution

of CIOs

FutureDistribution of CIOs

CIO’s Spend Most of Their Time with Staff

Time SpentSmall

Companies

Mid-Size Companies

Large

Companies

IT Staff or team 38% 41% 39%

Company's Executives 22% 21% 23%

Non-IT employees 20% 18% 17%

IT vendors/service providers 10% 11% 11%

External partners/customers 9% 9% 9%

Business Strategists spend More Time in Business

Time SpentFunction Head

Transformational

Leader

Business

Strategist

IT Staff or team 42% 39% 32%

Company's executives 20% 23% 27%

Non-IT employees 18% 18% 17%

IT vendors/service providers 11% 11% 10%

External partners/customers 8% 10% 14%




CIO - Staying Power

• The average job tenure has risen steadily since 2004, though it is more than a year shorter at large companies than at small and midsize companies.

• Average tenure in current position is*

5 Years, 20 Days*Source: The State of CIO 2007

Roles to playRoles to focus• Chief Integration Officer• Chief Innovation Officer• Chief Irritation Officer• Chief Identity Officer• Chief Inoculation Officer• Chief International Officer• Chief Investigative Officer• Chief Information Officer

Roles to avoid• Chief Inertia Officer• Chief Impediment Officer• Chief Inefficiency Officer

CIO – Report lines

41%

16%

23%

7% 13%CEO

COO

CFO

Corp. CIO

Other

Expected Competencies

CXO Expectations from CIO Strategic Orientation Results Orientation Market Knowledge External Customer Impact Collaboration and Influence People and Organizational

Development Change Leadership Team Leadership




Strategic Execution (Problems) 90% organizations fail to execute well-planned strategies. Many brilliant strategies fail due to poor execution. Insufficient information to employees about strategy and not providing

enough resources.

Three Reasons Why Good Strategies Fail: Execution, Execution, Execution...

Two things to become success: Ability to make good decisions Ability to implement those decisions.

People + Plans = Strategic Execution

Strategy Execution Officer Senior executive accountable for

Definition, Design, Implementation of Enterprise platforms, some cases, use of a firm’s Digitized Process Platform.

In most organizations, the CIO is assuming this role, shifting the IT organization from enabler to leader.

SEO Role – Enterprise Process Platforms

Enterprise IT & Process Governance

(11)

Project Design & Implementation

(10)

Ongoing Operations/ Continuous Improvement

(4)

Designs Platform

Builds Platform Components

Leverages Platform

Source : MIT Sloan 2008- Numbers reflect how many of 12 SEOs studied defined each responsibility.

Responsibility 1: IT and Process Governance

Ensure clarity among senior executives about platform design.

Coordinate demands for enterprise change projects, most of which involve IT implementations.

Establish priorities for change projects based on multiple criteria:

Organizational readinessContribution to platformAbility to use platformExpected benefits

Work with senior executive team which either makes investment decisions or approves SEO recommendations.

Responsibility 2: Project Design/Implementation

Ensure disciplined, effective project methodology.

Engage all key stakeholders early and often.

Provide expertise on process design.

Provide oversight and/or support of change management.

Responsibility 3: Ongoing Operations

Provide enterprise services, usually as a shared services organization.

Accept accountability for continuous improvement of the platform.

Ensure that the enterprise is driving value from the platform.




SEO - Two Main Responsibilities To ensure the effective execution of organization’s vision and strategy To leave the organization more sustainable then when he joined.

SEO Scope Developing and overseeing the components of the core business-

process platform Accepting a leadership role in a company's IT governance Brokering opportunities for driving value from the platform Establishing an organization and incentives for sustaining the platform.

Keys to Successful Execution Develop a model for execution Choose the right metrics Don't forget the plan Assess performance frequently Communicate

CIO

• ‘CIO ? Career Is Over’.– That’s hopelessly out of date.– Maybe a more modern version might be…

• ‘CIO ? Careering… Into Opportunities’.

Acknowledgements• The Future Multi-dimensional CIO, Jeff Wacker, EDS, USA• The evolving role of CIO, David Henderson, IBM, UK.• Convergent thinking among the C-suite why integration and collaboration spell big

opportunity for CIOs, IBM, USA. • The Enterprise of the future, IBM, USA.• The State of the CIO 2007 & 2008 Reports, CIO Magazine, USA.• The Role of the Government CIO, GSA Office of Citizen Services and Communications,

USA.• The Secrets to Successful Strategy Execution, Harvard Business Review, USA.• In the age of agility, CIOs are agents of change and business transformation, Korn/Ferry

International, USA.• All Roads Lead to the SEO, Jeanne W. Ross and Peter Weill, The Wall Street Journal, USA.• IT Governance Class Materials, Pallab Saha, NUS, Singapore.

Thanks

Q & A… f rom future CIOs…

by Akbar Husein, Balaji Balasubramanian, Kartik Mahadevan, Prateek Mehra and Saranya Ranganathan