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Chapter 4Chapter 4The Role of the CIOThe Role of the CIO

Managing the Information Managing the Information Technology ResourceTechnology Resource

Paula GouldingPaula Goulding

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Chapter OutlineChapter Outline

Role of the Chief Information Officer Role of the Chief Information Officer How role has changed over timeHow role has changed over time Key characteristics of effective CIOsKey characteristics of effective CIOs Relationship of the CIO to the need for Relationship of the CIO to the need for

alignmentalignment

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Synott’s Definition of CIOSynott’s Definition of CIO Manage information resources as vital Manage information resources as vital

corporate assetcorporate asset Bring systems into competitive marketplaceBring systems into competitive marketplace Manage and coordinate increasingly Manage and coordinate increasingly

decentralized information resourcesdecentralized information resources Manage end-user computing so that it serves Manage end-user computing so that it serves

corporation's needscorporation's needs Be a catalyst for corporate changeBe a catalyst for corporate change

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Evolution of CIOEvolution of CIO

Term coined in 1980s and continues to Term coined in 1980s and continues to change over timechange over time

Viewed as a strategist, not a managerViewed as a strategist, not a manager Leadership is keyLeadership is key Influence of CIO on forces determines Influence of CIO on forces determines

effectiveness of CIOeffectiveness of CIO

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Distributed Era of CIO RolesDistributed Era of CIO Roles

Four Roles Emerged from Distributed EraFour Roles Emerged from Distributed Era– Organizational DesignerOrganizational Designer– Strategic PartnerStrategic Partner– Technology ArchitectTechnology Architect– Informed BuyerInformed Buyer

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Web-Based EraWeb-Based Era

CIO has new responsibiltiesCIO has new responsibilties Role includes suppliers and customersRole includes suppliers and customers New roles are added to CIONew roles are added to CIO

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CIO’s Resume TodayCIO’s Resume Today Knowledge of applying IT to businessKnowledge of applying IT to business Visionary leaderVisionary leader Relationship managerRelationship manager MarketerMarketer Open systems-orientedOpen systems-oriented 20 years in LOB management jobs20 years in LOB management jobs French, German, JapaneseFrench, German, Japanese Masters, Harvard BusinessMasters, Harvard Business

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Current View of the CIOCurrent View of the CIO

Highly mobile – high turnoverHighly mobile – high turnover Must deliver effectively and rapidlyMust deliver effectively and rapidly Well-roundedWell-rounded Technically astuteTechnically astute People-orientedPeople-oriented Business skillsBusiness skills

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Concerns of CIOsConcerns of CIOs

94% Enhancing customer satisfaction94% Enhancing customer satisfaction 92% Security92% Security 89% Technology evaluation89% Technology evaluation 87% Budgeting87% Budgeting 83% Staffing83% Staffing 66% ROI analysis66% ROI analysis 64% Building new equipment64% Building new equipment 45% Outsourcing hosting45% Outsourcing hosting

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How CIO Affects Value of ITHow CIO Affects Value of IT

Focus on business needs as they relate to Focus on business needs as they relate to IT organizationIT organization

Educator to business executivesEducator to business executives Demonstrate importance of ITDemonstrate importance of IT Foster greater interactionFoster greater interaction Communicate successes and value of ITCommunicate successes and value of IT Good understanding of business visionGood understanding of business vision

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Global CIOGlobal CIO

Must deal with factors from other nationsMust deal with factors from other nations Education and experience in dealing with Education and experience in dealing with

people of other nationalities and culturespeople of other nationalities and cultures Knowledgeable about cultural differencesKnowledgeable about cultural differences Knowledgeable about geography and Knowledgeable about geography and

historyhistory Effectively deal with language differencesEffectively deal with language differences

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CIO AttributesCIO Attributes– Analyst background and orientationAnalyst background and orientation– Promote IT as agent of business Promote IT as agent of business

transformationtransformation– Contributes beyond IT functionContributes beyond IT function– Accurate perception of CEO views on Accurate perception of CEO views on

business and ITbusiness and IT– Integrates IT with business planningIntegrates IT with business planning– Profile stresses consultative leadership Profile stresses consultative leadership

and creativityand creativity

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CEO AttributesCEO Attributes

General management and/or marketing General management and/or marketing backgroundbackground

Change-oriented leadershipChange-oriented leadership Attended IT “awareness” seminarsAttended IT “awareness” seminars Experience IT project successExperience IT project success Perceives IT as critical to the businessPerceives IT as critical to the business Positions IT as agent of business Positions IT as agent of business

transformationtransformation

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Organizational AttributesOrganizational Attributes

Personal/informal executive stylePersonal/informal executive style Executive workshops on strategic issuesExecutive workshops on strategic issues CIO accepted in executive teamCIO accepted in executive team

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CEO Fit for Information AgeCEO Fit for Information Age

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CEO Must Believe in IT ImportanceCEO Must Believe in IT Importance

Creating contextCreating context Setting prioritiesSetting priorities Signaling Signaling

continuously and continuously and positivelypositively

Spending quality Spending quality timetime

Relating with CIORelating with CIO

Scan and understand Scan and understand new technologiesnew technologies

Working on vision of the Working on vision of the FutureFuture

Sponsoring internal and Sponsoring internal and external architecturesexternal architectures

Embedding information Embedding information management processesmanagement processes

Challenging IT’s supply Challenging IT’s supply sideside

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Top 10 CIO RequirementsTop 10 CIO Requirements1.1. LeadershipLeadership

2.2. Expertise in aligning Expertise in aligning and leveragingand leveraging

3.3. Business savvyBusiness savvy

4.4. Relationship skillsRelationship skills

5.5. Management skills Management skills

6.6. Communication Communication skillsskills

7.7. Ability to create and Ability to create and manage changemanage change

8.8. Knowledge and Knowledge and experience in specific experience in specific industryindustry

9.9. International experienceInternational experience

10.10.Ability to hire, develop, Ability to hire, develop, and retain quality IT and retain quality IT professionalsprofessionals

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The Effective CIOThe Effective CIO

Delegation of Operational TasksDelegation of Operational Tasks Seize Expenditure/Financial AuthoritySeize Expenditure/Financial Authority Avoid Adversarial PositionsAvoid Adversarial Positions Initiate Contacts Outside the Information Initiate Contacts Outside the Information

Technology UnitTechnology Unit– Create relationships with business peersCreate relationships with business peers

Use Language CarefullyUse Language Carefully– Avoid use of technology jargonAvoid use of technology jargon

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Feeny’s Characteristics of “Ideal” CIOFeeny’s Characteristics of “Ideal” CIO

Honesty, Integrity, Sincerity, OpennessHonesty, Integrity, Sincerity, Openness Business Perspective, Motivation, LanguageBusiness Perspective, Motivation, Language Communicator, Educator, Motivator, Leader, Communicator, Educator, Motivator, Leader,

Politician, Relationship BuilderPolitician, Relationship Builder Continuously Informed on Developments in Continuously Informed on Developments in

IT, Able to Interpret their Significance to IT, Able to Interpret their Significance to BusinessBusiness

Change-Oriented Team Play, Catalyst to Change-Oriented Team Play, Catalyst to Business ThinkingBusiness Thinking

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IT Managerial Skill MixIT Managerial Skill Mix

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What Makes a Manager?What Makes a Manager?

Information Processing RolesInformation Processing Roles– DisseminatorDisseminator

Interpret and edit before passing alongInterpret and edit before passing along

– MonitorMonitor Analyze information available to ascertain Analyze information available to ascertain

problemsproblems Stay informed of activities outside subunitStay informed of activities outside subunit

– SpokespersonSpokesperson Source of information about subunitSource of information about subunit Sell capabilities and value of organizationSell capabilities and value of organization

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What Makes a Manager?What Makes a Manager?

Decision-Making RolesDecision-Making Roles– EntrepreneurEntrepreneur

Ability to change design of unit structureAbility to change design of unit structure

– Disturbance HandlerDisturbance Handler Deal with conflict and crisesDeal with conflict and crises

– Resource AllocatorResource Allocator Control resources with organizationControl resources with organization

– NegotiatorNegotiator Negotiate commitmentsNegotiate commitments

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What Makes a Manager?What Makes a Manager?

Interpersonal RolesInterpersonal Roles– LiaisonLiaison

Maintain relationships with other unitsMaintain relationships with other units

– FigureheadFigurehead–Formal obligations that come with Formal obligations that come with

managerial titlemanagerial title

– LeaderLeader Includes humanIncludes human resources activities resources activities

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What Makes a Leader?What Makes a Leader? Broad business and organizational Broad business and organizational

knowledgeknowledge Broad set of relationships in firm and Broad set of relationships in firm and

industryindustry Excellent reputation and strong track recordExcellent reputation and strong track record Keen mind and strong interpersonal skillsKeen mind and strong interpersonal skills High integrity and personal valuesHigh integrity and personal values High level of motivationHigh level of motivation

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Characteristics of Effective LeadershipCharacteristics of Effective Leadership Has willing followersHas willing followers Relationship between leaders and followersRelationship between leaders and followers Leadership occurs as an eventLeadership occurs as an event Use influence beyond formal authorityUse influence beyond formal authority Operate outside boundaries of defined proceduresOperate outside boundaries of defined procedures Involves risks and uncertaintyInvolves risks and uncertainty Not everyone will follow leader’s initiativeNot everyone will follow leader’s initiative Consciousness creates leadershipConsciousness creates leadership Is a self-referral processIs a self-referral process

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Leaders vs. ManagersLeaders vs. Managers

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Organizational Role Changes of CIOOrganizational Role Changes of CIO

Networking resources to exchange Networking resources to exchange informationinformation

Share data elements among business Share data elements among business units/external firmsunits/external firms

Apply common application systems across Apply common application systems across the firmthe firm

Requirements for specialized IT human Requirements for specialized IT human resourcesresources

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Critical IT Management ProcessesCritical IT Management Processes

Setting strategic directionSetting strategic direction Establishing infrastructure systemsEstablishing infrastructure systems Scanning technologyScanning technology Transferring technologyTransferring technology Developing business systemsDeveloping business systems

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Functional Changes in Role of CIOFunctional Changes in Role of CIO

Focus on Strategist roleFocus on Strategist role At the center of operations for strategy At the center of operations for strategy

pertaining to technologypertaining to technology Implementation of strategies pertaining to Implementation of strategies pertaining to

technologytechnology Technology executive acting as counselor to Technology executive acting as counselor to

business executivesbusiness executives

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Tips for New CIOTips for New CIO

Get a seat at the tableGet a seat at the table One-to-one communications with CEOOne-to-one communications with CEO Partnership with peersPartnership with peers Study corporate cultureStudy corporate culture Understand business modelUnderstand business model Define current commitmentsDefine current commitments Establish credibility through small thingsEstablish credibility through small things

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Tips for New CIOTips for New CIO

Build personal board of directorsBuild personal board of directors Listen and talkListen and talk Be accessible and responsiveBe accessible and responsive Set realistic goalsSet realistic goals Take inventoryTake inventory Assess your peopleAssess your people Understand value and threat of outsourcingUnderstand value and threat of outsourcing