Robert Koenig

IT Director: IT Director:

What is your next What is your next step?step?

Robert Koenig

AgendaAgenda

1.1. Introduction (intro + expectations)Introduction (intro + expectations)2.2. Overview, current situationOverview, current situation3.3. ActivityActivity4.4. SummarySummary

Robert Koenig

My careerMy careerMy career

Year Company Role

1985 Andersen Consulting SAP consultancy1987 Jungheinrich corporate reporting1987 SAP implementation1989 Head of IT1994 Joint MD in the UK1997 founded Internet Sales Ltd.1999 founded Bell Europe Ltd 2000 founded PAYOA Ltd and Big Planet recruiting Ltd.

5

Robert Koenig

PAYOA Maximising the return on your people assetPAYOA

VISION

MISSION

CULTURE

PRACTICES

BEHAVIOURS

OBJECTIVES

PROCESSES

ACTIONS

RESULTS

TANGIBLE INTANGIBLE

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Robert Koenig

The dos and don’ts of dealing with the IT ageThe dos and don’ts of dealing with the IT age

•• ““The problem is that many boards The problem is that many boards don’t know what they want”don’t know what they want”

•• DirectorsDirectors mustmust bebe ITIT--savysavy•• TheThe marketmarket isis determineddetermined moremore andand

moremore byby thethe youngyoung generationgenerationcomingcoming throughthrough

Source: FT Director 11-00

Robert Koenig

Personal qualities of board membersPersonal qualities of board members

•• Strategic perception and decision Strategic perception and decision makingmaking

•• Analytical understandingAnalytical understanding•• CommunicationCommunication•• Interacting with othersInteracting with others•• Board managementBoard management•• Achieving resultsAchieving results

Source: Institute of Directors

Robert Koenig

“Features” of an IT Director / CIO“Features” of an IT Director / CIO

•• ProjectsProjects•• BudgetsBudgets•• OrganisationOrganisation•• Intellectual CapitalIntellectual Capital•• FlexibilityFlexibility•• QualityQuality•• InnovationInnovation

Robert Koenig

Complex Technology Creates Performance Challenges

Complex

Simple

Year 2010Year 1950

Robert Koenig

SPEED of ChangeSPEED of Change

World Knowledge Doubles*World Knowledge Doubles*

•• From Jesus Christ to 1750From Jesus Christ to 1750 1750 years1750 years•• From 1750 to 1900From 1750 to 1900 150 years150 years•• From 1900 to 1950From 1900 to 1950 50 years50 years•• Now Now -- Every 900 daysEvery 900 days 2.5 years2.5 years

•• * Source : World Future Studies Institute* Source : World Future Studies Institute

Robert Koenig

Speed of changeSpeed of change

Knowledge = SpeedKnowledge = SpeedFrom Scientific invention till commercial manufactureFrom Scientific invention till commercial manufacture

–– Photography Photography -- 112 years112 years–– Phonograph Phonograph -- 56 years56 years–– Transistor Transistor -- 5 years5 years–– Printed Circuit Printed Circuit -- 2 years2 years

Robert Koenig

108 X 5vs.

8 X 1*

* 540 vs. 8 (-98.5%)

108 X 5vs.

8 X 1*

* 540 vs. 8 (-98.5%)

Robert Koenig

Our MessageOur Message

“. . . Work . . . Yours and mine . . . “. . . Work . . . Yours and mine . . . As we know it today . . . Will be reAs we know it today . . . Will be re--invented in the next 10 years. It’s invented in the next 10 years. It’s as simple as that. And as as simple as that. And as profound. Here’s why . . .”profound. Here’s why . . .”

Tom PetersTom Peters

Robert Koenig

NOW THAT’S B-I-G!“The period 2000-2002 will bring the single greatest change in worldwide economic and business conditions since we came down from the trees.”David Schneider & Grady Means, MetaCapitalism

NOW THAT’S B-I-G!“The period 2000-2002 will bring the single greatest change in worldwide economic and business conditions since we came down from the trees.”David Schneider & Grady Means, MetaCapitalism

Robert Koenig

The Silicon ValleyThe Silicon Valley

• 7,000 IT companies• 11 companies

founded every week• 25% of the largest IT

companies in the world

Market capitalization: 600 BN$(more than France…)

Robert Koenig

“It used to be that the big ate the small. Now the fast eat the slow.”Geoff Yang, IVP/ (Institutional Venture Partners)

“It used to be that the big ate the small. Now the fast eat the slow.”Geoff Yang, IVP/ (Institutional Venture Partners)

Robert Koenig

“If things seem under control, you’re just not going fast enough.”Mario Andretti

“If things seem under control, you’re just not going fast enough.”Mario Andretti

Robert Koenig

Progressive

“We don’t sell insurance anymore.We sell speed.” – Peter Lewis

Digital cameras, wireless Net links, etc.: SOME CLAIMS PAID WITHIN 20 MINUTES!Source: Business Week (09.00)

Progressive

“We don’t sell insurance anymore.We sell speed.” – Peter Lewis

Digital cameras, wireless Net links, etc.: SOME CLAIMS PAID WITHIN 20 MINUTES!Source: Business Week (09.00)

Robert Koenig

“Our ideal acquisition is a small startup that has a great technology product on the drawing board that is going to come out in six to twelve months. We buy the engineers and the next generation product. …”

John Chambers, Cisco

“Our ideal acquisition is a small startup that has a great technology product on the drawing board that is going to come out in six to twelve months. We buy the engineers and the next generation product. …”

John Chambers, Cisco

Robert Koenig

“The corporation as we know it, which is now 120 years old, is not likely to survive the next 25 years. Legally and financially, yes, but not structurally and economically.”Peter Drucker, Business 2.0 (08.00)

“The corporation as we know it, which is now 120 years old, is not likely to survive the next 25 years. Legally and financially, yes, but not structurally and economically.”Peter Drucker, Business 2.0 (08.00)

Robert Koenig

Headline: “Bank to Cut … 10,000 Jobs”

“Middle-level and senior managers are expected to be the principal targets of the job cutbacks.”

Source: The New York Times (07.29.2000)

“Middle-level and senior managers are expected to be the principal targets of the job cutbacks.”

Source: The New York Times (07.29.2000)

Robert Koenig

The changing global horizonThe changing global horizon

Mergers / consolidation

Growing population

Self employment

Poverty & riches

Finite resources

Global buying & selling & investing

Knowledge economy

0% IT market

CNN world

Flat Organisations

New Work Patterns

Individualism

Deregulation

Robert Koenig

The revolution is hereThe revolution is hereThe revolution is here

" Intense global & local competition - New products, services and destructive entrepreneurs

"New Productivity tools (I)- White Collar Robots -ERP systems, Intranets, Knowledge capital management schemes, Customer Relationship Management systems etc

"New Productivity Tools (II) - The Internet - A new connectivity for business, customers and society - new distribution networks.

"Global Outsourcing . . . Of White collar work -Mass Customisation - XChanging

" Speed - lets measure white collar productivity - traditional time frames savaged

Robert Koenig

New work – the core modelNew work – the core model

Robert Koenig

WorkshopWorkshop

3 working groups3 working groups1.1. The future of the ITThe future of the IT--departmentdepartment2.2. The future of the ITThe future of the IT--directordirector3.3. The future of the work in ITThe future of the work in IT

15 Minutes preparation15 Minutes presentation

Robert Koenig

Traditional Competitive AdvantageTraditional Competitive AdvantageP

• Cost - Ownership, Use, Training Support, Maintenance

• Time - Cycle Time, Lead Time, etc

• Response Time - Lead Time, No of handoffs / Queues

• Flexibility - Customisation, options, compositions, etc

• Quality - Rework, rejects, yield, etc

• Innovation - New needs, interfaces, add-ons

Robert Koenig

PNew Competitive AdvantageNew Competitive Advantage

Cost, Time, Response Time, Flexibility, Quality, Innovation

LEADERSHIP

Information Correctness, currency, consistency,

completeness, clarity, availability, security, etc

Your People Talent !!!

Robert Koenig

PThe Inclusive ApproachThe Inclusive Approach

‘‘Inclusive organisations’ have:Inclusive organisations’ have:

•• A visionA vision•• Stakeholder Stakeholder

relationshipsrelationships•• A ‘success model’A ‘success model’

Robert Koenig

Stakeholders - a Balanced JourneyStakeholders - a Balanced JourneyP

CommunityCommunityCommunity

EmployeesEmployeesEmployees

SuppliersSuppliersSuppliers

CustomersCustomersCustomers

ShareholdersShareholdersShareholders

Leadership

Robert Koenig

P

Virgin, Dell =Brand-owning companies who sell Customer Satisfaction

Virgin, Dell =Brand-owning companies who sell Customer Satisfaction

Robert Koenig

P

“The most profitable businesses in the future will act as knowledge brokers, linking insights into what’s available with insights into the customer’s individual needs and preferences.”

“The most profitable businesses in the future will act as knowledge brokers, linking insights into what’s available with insights into the customer’s individual needs and preferences.”

Robert Koenig

P

Answer: PCM[Profit-Centre Mentality]

Department Headto …

Managing Partner,HR [IS, etc.] Ltd.

Answer: PCM[Profit-Centre Mentality]

Department Headto …

Managing Partner,HR [IS, etc.] Ltd.

Robert Koenig

PReal PCM . . .Real PCM . . .

. . . It’s about Internal Departments . . .. . . It’s about Internal Departments . . .

. . .its about doing. . .its about doing WORK WORTH PAYING FOR . . . WORK WORTH PAYING FOR . . .

If you had to bid against an external If you had to bid against an external provider for the internal services you provider for the internal services you

deliver to the organisation deliver to the organisation -- would you win would you win -- are you the only ones who do what you are you the only ones who do what you

do.do.

Robert Koenig

PReal PCM . . .Real PCM . . .

•• Think enterpriseThink enterprise•• Clients RuleClients Rule•• Work = WOW ProjectsWork = WOW Projects•• Engage Clients in deep dialogueEngage Clients in deep dialogue•• Lead ClientsLead Clients•• Think ImpactThink Impact•• Embrace PoliticsEmbrace Politics•• Master “the economics”Master “the economics”•• WE HELP PEOPLEWE HELP PEOPLE•• CoCo--habit with the client!habit with the client!

Robert Koenig

New work – the core modelNew work – the core model

Robert Koenig

WWOW ProjectsWOW Projects

• Is dynamic, stimulating, a major bond builder, a source of buzz among end users

• Confronts and redefines an important issue or problem in such a way that participants will be remembered for it 10 years later.

• Moves at record speed . . . Is considered a startling success even by early detractors

• Is the “place to be”

Robert Koenig

WWOW ProjectsWOW Projects

Each (small) project contains the DNA - all

cultural attributes - of the entire enterprise.

Robert Koenig

WEarly Customer RejectionsEarly Customer Rejections

Space WagonsSpace Wagons PostPost--itsits VCR’sVCR’s

Fax MachinesFax Machines CNNCNN

Mobile PhonesMobile PhonesSource : FortuneSource : Fortune

Robert Koenig

New work – the core modelNew work – the core model

Robert Koenig

Robert Koenig

B

2010 “Demographics”:

By 2010, full-time workers will be in the minoritySource: MIT study (28August2000)

2010 “Demographics”:

By 2010, full-time workers will be in the minoritySource: MIT study (28August2000)

Robert Koenig

PThe Manager’s WorldThe Manager’s World

• Resources utilisation– Capital (ROI)– Plant and labour

• Relationships– Contractual with customers, suppliers, workforce– Serving Shareholders

• Key functions– Planning, organising, directing, coordinating, controlling

• Legitimacy– Position power

Source: Philip Sadler

Robert Koenig

PThe Leader’s WorldThe Leader’s World

• Mobilising human resources– Commitment, alignment and empowerment

• Relationships– Building mutual trust with all stakeholders

• Key functions– Creating vision, mission and values

• Legitimacy– Trust based on integrity and competence

Source: Philip Sadler

Robert Koenig

B

“Seller’s Market”: Tomorrow’s Headline*

“Molecular biologists are up 3 points, economists down 1/4, inmoderate trading”

*futureWEALTH, Stan Davis and Christopher Meyer

“Seller’s Market”: Tomorrow’s Headline*

“Molecular biologists are up 3 points, economists down 1/4, inmoderate trading”

*futureWEALTH, Stan Davis and Christopher Meyer

Robert Koenig

B

“When land was the scarce resource, nations battled over it. The same is happening now for talented people.”

Stan Davis & Christopher Meyer, futureWEALTH

“When land was the scarce resource, nations battled over it. The same is happening now for talented people.”

Stan Davis & Christopher Meyer, futureWEALTH

Robert Koenig

P

Employee retention & satisfaction: Overwhelmingly, based on their immediate manager!

Source: Marcus Buckingham & Curt Coffman, First, Break All the Rules: What the World’s Greatest Managers Do Differently

Employee retention & satisfaction: Overwhelmingly, based on their immediate manager!

Source: Marcus Buckingham & Curt Coffman, First, Break All the Rules: What the World’s Greatest Managers Do Differently

Robert Koenig

New World of Work< 1 in 10 F500#1: Manpower Inc.Freelancers/I.C.: 16M-25MTemps: 3M (incl. CEOs & lawyers)

Microbusinesses: 12M-27MTotal: 31M-55M

Source: Daniel Pink, Free Agent Nation

New World of Work< 1 in 10 F500#1: Manpower Inc.Freelancers/I.C.: 16M-25MTemps: 3M (incl. CEOs & lawyers)

Microbusinesses: 12M-27MTotal: 31M-55M

Source: Daniel Pink, Free Agent Nation

Robert Koenig

B

T.T.D./Assignment

Construct a 1/8-page or 1/4-page ad forBrand You … for theYellow Pages

T.T.D./Assignment

Construct a 1/8-page or 1/4-page ad forBrand You … for theYellow Pages

Robert Koenig

B

Mantra2000

Talent = BrandMantra2000

Talent = Brand

Robert Koenig

Robert Koenig

SummarySummary

THINK PAYOATHINK PAYOA

PAYOA Limitedwww.payoa.comE-mail: robert@payoa.com