Journey to theFuture State CIO

2011 State of the CIO

• Currently | 22% of ITs group Labour is outsourced

• 3 - 5 years | 34% of ITs group labour is outsourced

• Increase | 12%

Presentation title

Presentation title

Activities consuming CIOs’ time & focus Now

• Driving business innovation 25%• Identifying opportunities for competitive differentiation 17%

• Developing new go-to-market strategies & technologies 9%

• Developing and refining business strategy 21%• Studying market trends/customer needs to identify commercial

opportunities9%

• Improving IT operations/systems performance 53%• Cost control/expense management 45%• Implementing new systems and architecture 47%• Managing IT crises 26%• Negotiating with IT vendors 26%• Aligning IT initiatives with business goals 58%

* Respondents were allowed to indicate multiple activities

Strong desire to shift focus

Presentation title

Activities consuming CIOs’ time & focus Now 3-5 Years From Now

Difference

• Driving business innovation 25% 54% +29• Identifying opp’s. for competitive differentiation 17% 42% +25• Developing new go-to-market strategies & technologies 9% 32% +23• Developing and refining business strategy 21% 38% +17• Studying market trends/customer needs to identify

commercial opportunities9% 25% +16

• Improving IT operations/systems performance 53% 22% -31• Cost control/expense management 45% 17% -28• Implementing new systems and architecture 47% 26% -21• Managing IT crises 26% 6% -20• Negotiating with IT vendors 26% 9% -17• Aligning IT initiatives with business goals 58% 41% -17

3 fundamental IT leadership types

Leverages alignment & close partnership with the business to create enterprise change and optimise processes

Functional or Operational HeadRuns the IT organisation, achieving IT operational excellence & providing effective, reliable services

Transformational Leader

Creates/enables business strategy & competitive advantage through innovation across and external to the enterprise

Business Strategist or Future-State CIO

Trending from 2011 State of the CIO surveyFU

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11%46%

43%

Current Distribution of CIOs

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Trending from 2011 State of the CIO surveyFU

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Current Distribution of CIOs

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Future Distribution of CIOs (3-5 years)

1. STRATEGIC ORIENTATION | Ability to think long-term and beyond one’s own area. It involves 3 key dimensions; business awareness, critical analysis and integration of information, and the ability to develop an action-oriented plan.

2. TEAM LEADERSHIP | Focusing, aligning and building effective groups both within one’s immediate organisation and across functions.

3. COMMERCIAL ORIENTATION | Identifying and moving towards business opportunities, seizing chances to increase profit and revenue.

4. EXTERNAL CUSTOMER FOCUS | Serving and building relationships with customers or clients.

5. COLLABORATION & INFLUENCE | Working effectively with, and influencing those outside of your functional area for positive impact on business performance

6. MARKET KNOWLEDGE | Understanding the market in which a business operates. The business content can include competition, the suppliers, the customer base and the regulatory environment

7. CHANGE LEADERSHIP | Transforming and aligning an organisation through its people to drive for improvement in new and challenging directions. It is energising a whole organisation to want to change in the same direction.

8. PEOPLE & ORGANISATIONAL DEVELOPMENT | Developing the long-term capabilities of others and the organisation as a whole and finding satisfaction in influencing or even transforming someone’s life or career.

9. RESULTS ORIENTATION | Being focused on improvement of business results.

The 9 Executive Core CompetenciesThe 9 core competencies determined by Egon Zehnder to have the greatest impact on an executive’s success are (in no particular order):

9 core competencies matched against the 3 CIO leadership types

• Strategic Orientation• Change Leadership• Collaboration & Influence• Results Orientation

Functional or Operational Head• People and Organisational Development• Team Leadership

Transformational Leader

• Commercial Orientation• Market Knowledge• External Customer Focus

Business Strategist or Future-State CIO

Journey: Competencies In | Value Out

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Journey: Functional or Operational HeadC

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LEADER FOCUS: INTERNAL

STAFF EXPERTISE: SYSTEMS

STAKEHOLDER RELATIONSHIP: SERVICE PROVIDER

Meet with influential stakeholders & achieve quick winsImplement portfolio governanceRun IT like a “business” (transparency, SLAs, benchmarks)Fix what’s broken!

Optimize IT operationsEmphasize competencies of functional expertise, people & org. development, team leadership

Develop teams with strong functional skills & technical expertiseIntroduce process disciplines (ITIL, etc.) Implement a PMO

Journey: Transformational LeaderC

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Prioritize enterprise processes and needs versus silosEmphasize competencies if collaboration & influence, change leadership, IT strategy & results orientation

Deepen staff knowledge of enterprise processesEmbed managers in business to relate better to stakeholders Outsource commodity services and systemsDeepen leadership depth in senior staff

Serve on a business committeeImplement business value-related metrics for IT

LEADER FOCUS: ENTERPRISE

STAFF EXPERTISE: PROCESSES

STAKEHOLDER RELATIONSHIP: PARTNER

Journey: Business Strategist or Future-State CIO

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Develop deep knowledge of vertical industry (markets, competition, customers)Emphasize competencies of commercial orientation, customer insight, market knowledge

Delegate operations & function oversight to senior teamImplement customer-facing structure/roles for IT teamRotate lieutenants into business roles; hire from non-IT functions

Collaborate on business strategy with fellow officersCultivate relationship with boardCall on end customers

LEADER FOCUS: EXTERNAL

STAFF EXPERTISE: BUSINESS

STAKEHOLDER RELATIONSHIP: PEER

EgonZehnder

International

Future-State CIO competencies match CEOs’Future-State CIO competencies match CEOs

Business Readiness Index Tool

http://tiny.cc/0yzwdw

To find out more…..

Caroline Bucknell | General Manager

Direct: (02) 9902 2713

E-mail: caroline_bucknell@idg.com.au