2nd Annual CIO Survey - June 2014

“Situation Room to Board Room”

The Healthcare CIOas a

Strategic Asset

Responses collected in April, 2014.Out of an initial 175 respondents, 32 who did not have a CIO title were discontinuedTotal who started the survey: 142Skipping was allowedAverage time to complete was 9 minutes

Methodology

2

Male76.8%

No answer1.4%

Female21.8%

Over ¾ of CIOs Are Male

3

Undergraduate Graduate degree Doctoral Degree Post-doctoral Certification0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

97% of CIOs Have Undergraduate Degree; 71% have a Graduate Degree

4

Top Three Areas of Bachelor’s Degrees: Computer Science, IS, IT (37 people)Business, Finance, Management, Economics (35)Biology, Physics, Math (15)

Top Three Areas of Master’s Degrees:MBA, Management, Business (42 people)Health/Hospital Admin., Public Health (20)IT, IS, Computer Science (19)

87.1%

YesIn next 12 monthsNo

13% of CIOs Are Working on, Or Plan on, Additional Education

5

Are you engaged in obtaining an additional / advanced degree?

13%

Average W-2 is $290K, 28% making less than $200K

6

Over $800K

750 - 800

725 - 750

700 - 725

675 - 700

650 - 675

625 - 650

600 - 625

575 - 600

550 - 575

525 - 550

500 - 525

475 - 500

450 - 475

425 - 450

400 - 425

375 - 400

350 - 375

325 - 350

300 - 325

275 - 300

250 - 275

225 - 250

200 - 225

Less than $200K

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0%

28%

Average is $290,000

De-creased

0-3% 3%-6% 6%-10% 10%-15% 15%-20% 20%-25% 25%-50% Over 50%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Half Reported a 0-3% Earnings Increase

7

8% reported earnings increase over 10%

64% of these CIOs reported a job change or promotion

Yes No0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Only 1 in 5 Saw Comp Change Due to Job Change or Promotion

8

17%

83%

Q8: Did your compensation change due to a job change or promotion?

De-creased

0-3% 3%-6% 6%-10% 10%-15% 15%-20% 20%-25% 25%-50% Over 50%

-5%

0%

5%

10%

15%

20%

25%

30%

Of Those Who reported a Job Change or Promotion, ¼ Reported a Decrease in Earnings

9

Change In Earnings After Job Change or promotion

Decreased 0-10% 10%-20% 20%-30% 30%-40% 40%-50% > 50% Other (n/a)0%

5%

10%

15%

20%

25%

30%

35%

Workload Increase Vs. Prior Year

Workload Outpaces Pay Increases; 9 of 10 Respondents Expect Pace To Continue.

10

91% reported workload increase over 10%

Concerned

Not Concerned

Unsure

0% 10% 20% 30% 40% 50% 60%

Over 50% of CIOs Concerned About Keeping Up With Change

11

Q11: Are you concerned about your ability to keep pace with the change required of your role?

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 300.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

% of respondents

The Average Tenure As CIO is11 Years

12

Median: 10 Years As CIOAverage: 11

11 or more

1-10 years

$200,000 $250,000 $300,000 $350,000

$310,000

$263,000

W-2

CIOs With 11+ Years Experience Make 18% More Than Those with 10 Or Less

13

0 5 10 15 20 25 30 350

100

200

300

400

500

600

700

800

900

Years with CIO Title (Tenure)

An

nu

al In

com

e (

‘00

0)

But Correlation Between Tenure and Income Is Weak (r=0.3026)

14

(Those reporting earnings <$200K set at $175K for calculation purposes)

Doctor

MD

Master

Bachelor

no degree

$100,000 $200,000 $300,000 $400,000

$386,000

$379,000

$289,000

$252,000

$175,000

Educational Degrees Drive Significant Differences in Earnings

15

15%

2%

Average $277K

Avg. $382K

38%

Graduate Degree:Doctoral Degree:Average W-2:Job Change or PromoTenure

Smaller Share of Women CIOs Have Graduate Degrees; They Report Lower Income, But Equal Tenure

16

All Respondents

71%10%

$290,00017%

10.8 yrs

Women

57%10%

$261,00013%

11.1 yrs

0.0%

20.0%

40.0%

60.0%

Healthsystem Critical CIO Time Spent

CIOs Perceive Alignment With Majority of Health System’s Needs

17

CIOs would like more involvement in three key areas

Other Areas of Focus

18

Health System Critical Areas Growth and Affordability Integrating or replacing two different

EHR vendors / Also M&A activity has been critical

merger Financial Report and Analysis financial viability Patient Safety Coordinating our PHO IT strategy with

our state HIE initiatives is a major factor in my position

Research systems Reimbursement reductions and overall

cost reductions enterprise-wide Expanding and establishing ourselves

as the regional market leader and provider of choice the above are all just tasks that feed that

CIOs Additional Time Spent New technology projects Growth, Affordability, Relationship

Development/Management process redesign, Leadership development Operationalizing ACO HIM Compliance Integration efforts - M&A - Improving the

capability maturity model across the board - strategic planning - managing a burned out staff

Strategy business development Leading a Director team of 18 direct reports Extending use of shared EMR to 3rd parties

to support CIN innovative programs I am also the Chief Operating Officer in

addition to being the CIO, so I spend a large amount of time on my COO responsibilities

Establishing effective IT governance Aging infrastructure and networking Growth

Strategic57.3%

Opera-tional42.7%

A Majority Sees Their Role As Strategic vs. Operational/Tactical

19

Q15: Do you see your role as largely operational or largely strategic?

Select Comments:I wish I actually had time to be more strategicPretty good blend of both, but getting more strategicTrending more operational given the focus on cost excellenceSadly....just can't get out of the weeds.

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0% 72.2%

54.9%

47.4% 47.4%

37.6%

17.3%

12.0%

8.3%

“Which leadership roles are most critical to you in terms of achieving the key objectives

of your role?”

Executive Alignment Supports The Drive For Strategic Role

20

CEOCOO CMedO

CMIO Other CMrkO CISO

CFO

“CNO” accounted for over half of “Other” which puts it at about 10% of total

Exec

utive

exp

osur

e

Invo

lvem

ent w

ith clin

ician

s

Under

stan

ding

bus

ines

s side

Expe

rienc

e ou

tside

IT

Comm

unica

tion

skills

Impr

ove

oper

ationa

l skil

ls

Expe

rienc

e/ye

ars o

n job

0%

10%

20%

30%

40%

50%

60%

CIOs See Executive Exposure and Involvement With Clinicians as Strategic Imperative

21

Other Comments:• TIME! I need more TIME!• Them believing IT is a priority• Stopping media hype and educating

executives• Leadership who is much more

operationally focus• Being asked• Time and skilled resources• Board members do not see technology as

an enabler.• Improve overall strategic goals and PMO• Operational responsibility outside of IT

Q18: What do you believe would facilitate greater strategic involvement with key executives?

Budge

t

Shor

tage

Qua

lified

Peo

ple

Stra

tegic En

gage

men

t with

lead

ers

Tim

eline

No Cle

ar G

uida

nce

Mer

ger o

r Acq

uisit

ion

Exec

utive

Tur

nove

r

Clinici

an O

ppos

ition

Lack

of I

nfor

mat

ion

Lack

of T

raining

Oppor

tunity

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

Greatest Challenge To Accomplishing Objective Is Budget, Shortage of Qualified People and Strategic Engagement with Key Leaders

22

Other comments: • Old culture - not teamwork oriented• Lack of understanding by the

business on how to best leverage my teams and myself

• Vendor management• Lack of Enterprise Focus,

Prioritization, Governance• Limited Executive knowledge of IT• Changing priorities by CEO• Effective Governance• Workload• Willingness to change• Too many priorities• Too often initiatives seen as IS

Projects• Too many #1 priorities• New to the organization and just need

time• Conflicting priorities, lack of decision

makers that can make decision based on information

0%

10%

20%

30%

40%

50%

“Data Analytics” Is Most Important Skill to Add For Now and Future

23

Self-focused Greater expertise in business strategy Understanding the business including payer and physician contracting I will need to be more involved in the strategic direction Leading & Educating Senior Executive and Board Members Improve communication skills for physician communication Executive planning Catching up to where we should be while planning and executing our

strategy More grace under fire when confronted with resistance and

responsibility hot potato Improved persuasion techniques Data Architecture, Integration Board and physician engagement Understanding new business models to assess IS needs New market/revenue and selling innovations Ongoing improvement working in matrixed organization Organizational Change Management Expand relationships throughout organization More interactions with board members and physicians Leadership/Strategy Organizational project management All of the above, my knowledge needs to continually expand, to be

able to access the people/resources to solve the problems effectively (costs and timelines)

Project scoping and risk assessment around when and how much to invest in technology solutions, buy vs. build decisions.

Most Skill Needs For Future Are Self-Focused vs. Other-People Focused

24

Other people-focused I will need Executive Team to

mature Leadership buy-in of IT as a

priority I need the culture to be one of

participation, willingness to change and ownership of their applications

I will need adequate resources so i can spend more time developing strategic direction.

More Solid/Capable Direct Reports

More revenue

Partn

er w

ith te

am m

embe

r

Augm

ent t

he te

am w

ith skill

Adva

nced

cer

tifica

tion

Adva

nced

deg

ree

0%

20%

40%

60%

CIOs Plan To Add Needed Skill On The Job, Not In Class Room

25

Q21: How will you acquire or improve on [lacking] skill?

Highly Engaged

Routinely Engaged

Occasionally Engaged

Never Engaged

0% 10% 20% 30% 40% 50% 60%

Vast Majority Is Engaged With Key Executives Determining How Or What Technologies Can Help Achieve Strategic Goals

26

87%

Bringing innovative technologies to the organization

Creating improved patient safety through the use of technology

Bringing different departments together to achieve a common goal

Creating financial savings through the use of new technology

Rebuilding / turnaround department for greater efficiency

Meeting MU objectives

Patient Engagement Initiatives

Population Health Initiatives

Creating a solid infrastructure

Creating a secure environment

HIE Engagement / Leadership

Ranking in HIMSS Analytics

Other (see below)

ACO Engagement / Leadership

Data Warehouse

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

CIOs Would Most Like To Be Recognized For Work In Innovation and Improving Patient Safety

27

“Other” Comments Systemic Clinical and Financial Improvements Improving health care delivery for 1 million people Increasing market share, creating new products and

services Achieving business metrics IT recognized as an effective business partner improving health care value Outstanding morale and teamwork in my areas of

responsibility

Developing solid process and project management methodoogy Building a culture of service and collaboration Being accountable & progressive by implementing technology that brings

efficiencies, revenue, improves quality & safety, and reduces costs Successful EHR rollout with real value applying the right mix of technology, people, and process for my organization Improving the quality and access of care in our region. In short using

technology as a tool to meet patient needs better.

2/3 Feel Their Accomplishments Were Critical But Recognition Not Quite There

Was your accomplishment important to the strategic mission of your organization?

Has your organization recognized you for this accomplishment?

Critica

lly im

porta

nt to

the

stra

tegi

c m

issio

n

Very

impo

rtant

Som

ewha

t im

porta

nt

Not im

porta

nt0%

10%20%30%40%50%60%70%80% 68%

Yes No We'll See0%

10%

20%

30%

40%

50%

60%

70%

80%

28

60%

0

20

40

60

Highly Satisfied

Moderately Satisfied

Needs Improvement in the next year

Not at all Satisfied - Look-ing to make a change

Around 90% Are Highly or Moderately Satisfied with Compensation, Career Path and Strategic Involvement, But Need More Resources

29

0%

10%

20%

30%

40%

50%

60%

As Next Step, Half Of CIOs Look For Same Role, Larger Organization

30

Q26: If you were to consider a change to your role, what would be a reasonable next step for you?

54.1%

24.7%

16.5%

4.7%

Chief Transformation OfficerChief Executive OfficerChief Strategy OfficerChief Quality OfficerChief Medical Officer

CIOs See Chief Transformation Officer As Attractive Next Role

31

Of 24 additional comments, half named COO as the desired next role

Q27: If you would like a different role within the same or similar organization, which would you choose?

Our Sincere Thank You to All Those Who Took The Time To Share Their Experiences For The Good of Healthcare CIOs

Everywhere

Key Contacts at SSi-SEARCH:Pamela Dixon Managing Partner pdixon@ssi-search.com Steve Nilsen General Manager snilsen@ssi-search.com

Telephone (727) 822-3338