korn/ferry human capital solutions
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“What CEOs Want From CIOs” SIM Houston Chapter March 26, 2009 Mark Polansky Senior Client Partner & Managing Director Information Technology Officers Center of Expertise Korn/Ferry International. Korn/Ferry Human Capital Solutions. Executive Search - PowerPoint PPT PresentationTRANSCRIPT
““What CEOs Want From CIOs”What CEOs Want From CIOs”SIM Houston ChapterSIM Houston Chapter
March 26, 2009 March 26, 2009
Mark PolanskyMark PolanskySenior Client Partner & Managing Director Senior Client Partner & Managing Director
Information Technology Officers Center of ExpertiseInformation Technology Officers Center of ExpertiseKorn/Ferry InternationalKorn/Ferry International
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Korn/Ferry Human Capital Solutions
• Executive Search–Matrix of Industry/Sector & Functional Practices– IT Practice: CIOs, CTOs, CISOs, SVP/VPs
• Futurestep–Recruiting & Staffing Planning–Project/Pipeline Recruiting & Staffing–Recruitment Process Outsourcing
• Leadership and Talent Consulting–Organizational Development– Individual & Team Assessment–Competency-based Modeling–Executive Coaching & Development–Compensation Consulting
3
Evolution of the IT Leadership Role
• 1950s – Tab Supervisor–Accounting automation–Electro-mechanical equipment, early computers–Reports to Accounting Manager
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Evolution of the IT Leadership Role
• 1950s – Tab Supervisor
• 1960s – Data Processing Manager– Proprietary systems - accounting, payroll, sales– Batch mainframe computers– Reports to Accounting Manager or Controller
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Evolution of the IT Leadership Role
• 1950s – Tab Supervisor
• 1960s – Data Processing Manager
• 1970s – MIS Director– A full array of business applications systems– Online and database systems, minicomputers– Reports to Controller or Chief Financial Officer
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Evolution of the IT Leadership Role
• 1950s – Tab Supervisor
• 1960s – Data Processing Manager
• 1970s – MIS Director
• 1980s – Vice President of Information Systems– Alignment of IT with business functions– PCs and Local Area Networks, decentralization– Reports to Chief Financial Officer
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Evolution of the IT Leadership Role
• 1950s – Tab Supervisor
• 1960s – Data Processing Manager
• 1970s – MIS Director
• 1980s – Vice President of Information Systems
• 1990s – SVP/EVP & Chief Information Officer– Enterprise integration, recentralization– Client/server, Internet, ERP systems– Reports to CEO/COO/President/GM - senior management team
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Evolution of the IT Leadership Role
• 1950s – Tab Supervisor
• 1960s – Data Processing Manager
• 1970s – MIS Director
• 1980s – Vice President of Information Systems
• 1990s – SVP/EVP & Chief Information Officer
• 2000s – ????
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The IT Leadership Role in the 21st Century
• 2001-2002: End of the Technology Bubble– Dot-com implosion– Deep corporate IT cost cutting– Focus on tactical operations post-Y2K/ERP
• 2003-2007: “The 21st Century CIO”– Comprehensive definition of the “C-level” IT role– Strategic alignment and governance– Process & operational optimization/ERP– Business intelligence and customer intimacy– Value creation
• 2008-2010: Dealing with Global Recession– Cost management, modest budget & staff reduction– “21st Century CIO Agenda” still a mandate
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“The 21st Century CIO Leadership Agenda”
Source: Korn/Ferry research
1. IT Strategy – Business strategy alignment, business case and projected return on investments, priorities versus resources
2. IT Governance – Portfolio management, IT investment funding and review process, performance measurement, project management (PMO), SDLC, processes, standards, procurement
3. IT Organization & Staffing – Centralized, decentralized, federal model, shared services; reporting relationships, FTEs, staff augmentation, on/near/off-shore, capability/maturity, training
4. Technology – Architecture; bleeding/leading edge or trailing; build or buy, suite or best-of-breed; infrastructure and networking insourced/outsourced, total cost of ownership (TCO), support
5. Technology Awareness – Board of Directors, senior and middle management, rank and file
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“The 21st Century CIO Leadership Agenda”
Source: Korn/Ferry research
6. Corporate Governance – Compliance, disaster recovery, business continuity, security, privacy, intellectual property protection
7. Business Intelligence – Data modeling & warehousing, metrics, analytics, forecasting & modeling
8. ERP – Business integration, value chain, process improvement & innovation, change management, quality programs
9. Customer Care – Customer relationship management (CRM), contact centers, customer portals, B2B collaborative computing (EDI, VMI, CPFR)
10. Internet – e-business strategy, portals, web-enabled applications, telecommunications [Web 2.0]
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“The 21st Century CIO”
ENABLERENABLER DRIVERDRIVER
SUPPORTERSUPPORTER COST CUTTERCOST CUTTER
Strategic“competitive”
Tactical“operational”
Reactive“following”
Proactive“leading”
Present State of the IT Leadership Role
• 2008-2010 – Dealing with Global Recession– Operating charter
o Leadershipo Cost Managemento IT Governance & Risk Managemento Change & Innovation
– Success criteriao IT Effectivenesso Value Creationo Transparency & Measurement
– Upward mobility to operations and general management
What CEOs Want From CIOs
• Leadership– Assertive leadership and responsible ownership
– Enterprise/SBU-level business savvy and strategic skills
– IT alignment, strategy, vision, inspiration and motivation
– Communications, relationship & partnership skills
– Global perspective and optimizationo Global business processes, standards & supporto Use of global resources – sourcing & production
– Go beyond IT and the CIO’s comfort zone– Attract, develop & retain “best athletes” (The War for Talent)– Execution, execution, execution! Create World Class IT/Business Functionality
What CEOs Want From CIOs
• Cost Management– Do more with existing resources
o Organizational restructuring & right-sizingo Financial restructuring – the 80/20 paradigm
– Cost reduction & operational optimizationo IT standards and processeso Systems consolidation and integrationo Alternative/optimum sourcing/outsourcingo IT operations: automation, virtualization, ITIL, COBITo Vendor contracts: consolidation & renegotiation
Potential Funding for Low Risk/High Return Initiatives
What CEOs Want From CIOs
• Governance & Risk Management– IT standards, processes and controls
– IT architecture for agility and growth/scalability
– Quality programs - PMO, Six Sigma, CMM
– Data security, privacy and retention
– Systems and data protection - internal and external
– Support for compliance and audit
– Disaster Recovery and Business Continuity Planning Protect the Enterprise and Position for Future Growth
What CEOs Want From CIOs
• Value Creation - Drive the top and bottom lines– Improve revenue, margins, market share
– Business intelligence, analytics and insights
– BPO - enhanced productivity and competitive advantage
– Customer intimacy, loyalty, segment marketing, etc.
– Communities, markets & social networking - Web 2.0
– Technological innovation
– New products and services
– New channels and markets
– New business models Change & Innovation
“The 21st Century CIO”
ENABLERENABLER DRIVERDRIVER
SUPPORTERSUPPORTER COST CUTTERCOST CUTTER
Strategic“competitive”
Tactical“operational”
Reactive“following”
Proactive“leading”
Change & Innovation = Business TransformationChange & Innovation = Business Transformation
ProactiveStrategic
Products & Services Innovation
Products & Services Maintenance
IT Consolidation & Rationalization; Vendor Partnerships
IT Maintenance; Outsourcing
Reactive Strategic
Proactive Tactical
Reactive Tactical
GAME CHANGERGAME CHANGER
DRIVERDRIVER
ENABLERENABLER
COST CUTTERCOST CUTTER
SUPPORTERSUPPORTER
Business Transformation
Innovators & Game-Changers
• American Airlines – SABRE, AAdvantage
• Citibank – ATM Deployment
• FedEx – Parcel Tracking
• Toyota – Just-in-Time Manufacturing
• Dell – Zero Days Inventory
• Wal-Mart – Supply Chain, VMI, CPFR, RFID
• Proctor & Gamble – BI & Consumer Communities
• Amazon.com – Online Retailing
• eBay – Online Auctions
• Google – Search-based Advertising
• Facebook, YouTube, Twitter, LinkedIn – Social Networking
• You!