Cio Practice Succesion Planning

CIO Breakfast Seminars

CIO Succession Planning

15 and 17 February 2006

Prepared by:

Paul Rush

Talent2 International Limited

t: +61 2 9087 6257

m: +61 402 599 614

e: [email protected]


© 2007 Talent2 International Limited 2

Table of Contents

1 Introduction 3

2 Group Findings 4 Group Wide Strategy 4 Behaviours and Competencies 4 Delegate and Mandate 5 C Level Sponsorship 5 Communication/ Open Culture 5 Gene Pooling 5 Negative / Positive 5 Organisation Structure and Fluidity 6 Give Responsibility Early 6

3 Closing Comments 7

4 Conclusion 8

5 Attendees 9

6 Apologies 9

The views in this paper are a record of the views expressed by participants in the breakfast forums hosted by Talent2 in Sydney on 15 and 17 February 2006. They are not intended to represent the views of Talent2.

Introduction



1 Introduction

For the second CIO business forum, two breakfast sessions were held, focusing on CIO succession

planning. The outcomes of these sessions have been summarised in this document.

Glyn Brokensha, the facilitator, introduced a specific scenario to the group for the purposes of the

discussion:

You are a newly appointed Chief Executive Officer (CEO) of an organisation not unlike your own. Your

Chief Information Officer (CIO) has resigned unexpectedly without notice, having just won US$26 million in

the Texas Lottery. This makes you wish a) that you had been nicer to them in the past and b) that you had

sent them to a succession planning course or that preparation had occurred in their area.

If you could transport yourself back in time two or three years before this moment and be your

predecessor:

6 What steps could you take to ensure that a proper succession plan is developed and executed?

6 What should be in that plan?

6 What factors might assist or thwart the development and execution of the succession plan?

Make sure you consider strategic, systemic, cultural and individual personality factors.

Group Findings



2 Group Findings

Group Wide Strategy

The role of succession planning should not belong in a single functional area. There should be an

organisation-wide strategic plan, which starts by engaging with HR and the C suite to get their

endorsement and build the parameters to create a succession-based culture.

Behaviours and Competencies

Before engaging in succession planning, an understanding is required of the functions to be included in

order to build a competency based programme to identify suitable talent.

> Identify the company culture and market conditions. (e.g. at present companies are recruiting talent

externally, however, this could change.)

> Ensure the CIO’s goals are the same as the needs of the company (An example given by Glyn was a

manager, appointed to management from the floor of a production company, who was not happy in

the new role).

> The CIO’s personality must complement that of the Board.

> Look for a CIO who is flexible

> The CIO needs to have a good relationship with the CEO. The CEO and Board should be educated

on the role of a CIO (i.e. not as numbers-focused as a CEO).

> A company must frame a CIO position – the job description must be specific and detailed while at the

same time being flexible enough to allow for changing company strategy.

> Identify talent – what does a leader look like in your business and how are leadership capabilities and

the gap against external talent measured?

> The CIO must be able to interact across the entire organisation and should build a strong internal

profile with the leadership team.

> Observe the behaviour of potential CIOs during the selection process. To accurately assess

applicants it is imperative that a cross-section of the business is involved in the interview process.

There is a destructive nature in competition and behaviour must be carefully gauged across indicators

which include team work, political behaviour, performance and feedback.

Group Findings



Delegate and Mandate

It was suggested that the need for stakeholders to take responsibility for succession planning and leaders

throughout the organisation to ensure they are wearing an HR hat as part of their duties/responsibilities

along with facility planning.

Succession planning reviews, to assess the success or otherwise of the process in place, should be

implemented at least twice a year in board meetings .

The reviews also serve as an opportunity to benchmark and review candidate profiles across the

business. This is a dynamic process; new talent can join the pool as easily as talent can exit the pool – the

board must understand the role(s) and the gaps between the ideal and current talent pool.

C Level Sponsorship

The board/leadership team must take a forward, rather than a current, view of the business in order to

appoint the right people for future leadership. This reflects what the needs and wants are for the new CIO.

The rule of thumb is to ‘expect the unexpected’.

Communication/Open Culture

Internal communication is the key. It is mandatory for there to be open communication at all levels.

A succession based culture cannot be effective if the decision makers and potential leaders of the

business do not know that a strategy exists and have knowledge of the accompanying processes.

Gene Pooling

In house talent needs to be reviewed and benchmarked against external talent. To be proactive as an

organisation, future talent can be ‘flagged-up’ to the business, a concept known as ‘gene pooling’. This

keeps the talent pool fresh and, provided this talent is tracked, you will have an exemplary record in

attracting and retaining the best possible talent for your business.

Negative/Positive

Succession planning needs to be viewed in its entirety. This applies especially to dealing with rejected

candidates. It was recommended that the reason for a candidate being considered unsuitable is

Group Findings



communicated to them and to advise areas to address so that they are better prepared next time or

alternatively get the chance to make a career elsewhere.

Organisation Structure and Fluidity

A structure to allow people to grow must be created. This also means the ‘blockers’ need to be removed

from the structure. Expectations must be managed but, as an organisation, there is a moral responsibility

in help people developing their careers.

Do not concentrate solely on the next level down – talent needs to be nurtured across the organisation.

Similarly, succession planning at the leadership end of the business should look at seconding individuals

to other functional areas of the business to provide greater exposure to the whole business and prepare

them for the future.

Strategies to deal and communicate with ‘blockers’ were discussed. It was suggested to involve a ‘change

agent’ in the business to counteract the situation. Other options suggested were to generate change and

implement this change over time – ‘actions speak louder then words’.

Give Responsibility Early

It is mandatory to test and trial a new CIO in the role and with their peer groups. For example, as a CIO

taking leave, give someone acting responsibility during that period. Equally, a succession plan is a long

term goal so you can lend your talent to other business areas. To take this one step further, talent can be

seconded externally – i.e. to your clients.

Succession planning should be ongoing. It should be imbedded into the company’s methodology. There is

a cost element to this which should be considered from the start.

Closing Comments



3 Closing Comments

Glyn asked the group: Who has a finalised, legal and binding Will and Testament?

Planning is the key! To plan effectively you must plan for uncertainty.

For example, if you are leaving a company and the search begins for your replacement.

Inevitably you contemplate the following possibilities:

> No one could be possibly be better than me!

> What if they are better than me?

> Everyone is better than me!

With each of these personal views there is the inevitable issue of personal behavioural style. The best way

to overcome such factors is to ensure that you ‘reality-check’ yourself across the organisation and your

peers in other organisations.

Glyn suggested that, when looking at possible successors, the ‘Clone vs. Competitor dilemma’ is often

faced – do I want someone just like me or do I risk identifying someone better than me?

The answer should be neither – you have to plan for diversity in a successor – someone who has views

that may differ from your own in a number of ways. The greater the variety of views, the richer the results

for both the company and yourself.

We may have then come full circle, as we may have hired a very different individual from the original

specification – this is succession planning in action!

Conclusion



4 Conclusion

> Succession planning is an increasingly important part of a company’s strategy if it is serious about

attracting retaining and developing talent.

> Succession planning should be company wide and not functionally isolated.

> Ensure the strategy and success are communicated effectively throughout your company.

> Succession planning should not be only inward facing; the ’gene pooling’ approach should be adopted

by looking at the available pool of talent within the marketplace.

Attendees



5 Attendees

Andrew Carline CIO Baycorp John Childs Westpac

Colin Knowles CIO ABC Paul Cavanagh-Downs CIO Aristocrat

Ed Binney IT Executive Consultant Con Colovos CIO Executive Council

Gina Bernard CIO BNP Paribas Bobby Lehane CIO Multiplex

Michael Dodd Commonwealth Bank of Australia Gary Smith CIO TNT

Russell Wright CIO Freehills John Banks Director Talent2 Consult

Joe Demian Goldman Sachs JBWere Keith Roscarel CIO Executive Council

Bob Hennessy CIO AAPT Dr Glyn Brokensha Consultant Talent2 Consult

Sean Linkson Partner Talent Partners Paul Rush Practice Lead Talent2 CIO Practice

Chuck Stegen CIO HSBC

Paul Gardiner Commonwealth Bank of Australia

6 Apologies

Chris Holmes CIO Allens Arthur Robinson Fiona Balfour CIO Telstra

Mick Campbell CIO Ramsey Healthcare Gary Whatley CIO Corporate Express

David Hackshall CIO AAV Gary Clarke CIO Clayton Utz

Tim Catley CIO Sydney Water Geoff Wilson CIO ABN Amro

Simon Smith Head of Operations Customer Services AAPT

Ian Dart Managing Director Logicaltech

Sue Bartlett CIO Executive Council Karen McLachlan CIO David Jones

Ann Fabella CIO State Street Marg Williams Project Director BT Financial Group

Brenton Hush CIO General Pants Michael Vinter CIO AHL Entertainment

Andrew Lees CIO Agility Peter Yarrington CIO Goldman Sachs JBWere

Darryl Warren CIO Lion Nathan Rob Kliman JP Morgan Investor Services

David Fryda CIO Tyco

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Cio Practice Succesion Planning