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Peter Nevin Becoming the Future-State CIO

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Peter Nevin

Becoming the Future-State CIO

• My Background • Future-State CIO Model • CIO Competencies • Types of CIOs • Journey to the Future-State CIO • Matching CIOs and organisations

Agenda

My Background

Senior

Consultant National Rail

CIO

Global CIO

Senior Partner

EGM Business

Processes

Director

Technology

and Systems

FSH Project Chairman,

Board of Advisors

Strategic

Advisor

Principal

CIO

The Future-State CIO

Chevron

Sysco

H&R Block Veterans Admin.

Clorox

Egon Zehnder Thomson Reuters

GlaxoSmithKline WellPoint

P&G

Stakeholder Relations Peer

Staff Expertise Business

Leader Focus External

Stakeholder relations Partner

Staff Expertise Process

Leader Focus Enterprise

Stakeholder Relations Service Provider

Staff Enterprise Systems

Leader Focus Internal

Commercial Orientation

Market Knowledge External Customer

Focus

Strategic Orientation Change Leadership Collaboration &

Influence Results Orientation

People & Organisation Development

Team Leadership Functional Expertise

Systems efficiency & effectiveness

Security Data Management

Optimised business processes

Globalisation Enterprise agility

Business innovation Competitive advantage Decision-making

intelligence

Future-State CIO® C

om

pet

en

cie

s A

pp

lied

Cre

dib

le

Infl

uen

tial

Gam

e C

han

ger

Val

ue

De

live

red

Fu

nc

tio

na

l Tra

ns

form

ati

on

al

Bu

sin

ess

Three CIO Leadership Types

Primary Activities

.

Commercial Orientation

Market Knowledge External Customer

Focus

Stakeholder Relations Peer

Systems efficiency & effectiveness

Security Data Management

Staff Expertise Business

Leader Focus External

Stakeholder relations Partner

Staff Expertise Process

Leader Focus Enterprise

Stakeholder Relations Service Provider

Staff Enterprise Systems

Leader Focus Internal

Strategic Orientation Change Leadership Collaboration &

Influence Results Orientation

People & Organisation Development

Team Leadership Functional Expertise

Optimised business processes

Globalisation Enterprise agility

Business innovation Competitive advantage Decision-making

intelligence

Future-State CIO® C

om

pet

en

cie

s A

pp

lied

Cre

dib

le

Infl

uen

tial

Gam

e C

han

ger

Val

ue

De

live

red

Fu

nc

tio

na

l Tra

ns

form

ati

on

al

Bu

sin

ess

TRANSFORMATIONAL LEADER

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

and optimise processes

FUNCTION HEAD

Runs the IT organization, achieving IT operational excellence & providing

effective, reliable services

BUSINESS STRATEGIST Creates/enables business

strategy & competitive advantage through innovation

across and external to the enterprise

Current Distribution of CIOs Future Distribution of CIOs

FU

TU

RE

-STA

TE

CIO

®

CIO’s Time and Focus

25%

56%

19%

Business Strategist

Transformational Leaders

Function Heads

46% in 2011

11% in 2011 43% in 2011

The need for Future-State CIOs

1. IT is commoditised & consumerised. Mobile is platform of choice

2. Technology as service (cloud) becoming preferred provider

3. Millennials challenge everything as employees and customers

4. Ubiquitous data—touches all end customers

5. Social becomes prime marketing channel, need to embrace CMO

6. Big data must produce value

Basic hygiene

PCs, printers, phones, access…

Desk top systems

Email, office, Skype, calendars …

Back Office systems

Payroll, HR, Accounts, Content mgnt…

Production systems

Manufacturing, Banking, Inventory, Sales…

Customer facing systems

Online sales, personal banking, CRM…

Bu

sin

ess v

alu

e

Good operations and

Technical change projects

Reduced IT Costs

Improved Reliability

Good operations and

Transformational change projects

Reduced Business Costs

Improved Reliability

Good operations and

Business Strategic change

projects

Increased profit

Business transformation

What is the CIO’s Role?

CIO Competencies

Competencies In / Value Out

Future-State CIO® C

om

pet

en

cie

s A

pp

lied

Val

ue

De

live

red

• Strategic orientation

• Team leadership

• Commercial orientation

• External customer focus

• Collaboration and influencing

• Market knowledge

• Change leadership

• People and organisational development

• Results orientation

Core Competencies

Stakeholder Relations Peer

Staff Expertise Business

Leader Focus External

Stakeholder relations Partner

Staff Expertise Process

Leader Focus Enterprise

Stakeholder Relations Service Provider

Staff Enterprise Systems

Leader Focus Internal

Commercial Orientation

Market Knowledge External Customer

Focus

Strategic Orientation Change Leadership Collaboration &

Influence Results Orientation

People & Organisation Development

Team Leadership Functional Expertise

Systems efficiency & effectiveness

Security Data Management

Optimised business processes

Globalisation Enterprise agility

Business innovation Competitive advantage Decision-making

intelligence

Future-State CIO® C

om

pet

en

cie

s A

pp

lied

Cre

dib

le

Infl

uen

tial

Gam

e C

han

ger

Val

ue

De

live

red

Fu

nc

tio

na

l Tra

ns

form

ati

on

al

Bu

sin

ess

Core Competencies

TRANSFORMATIONAL LEADER

Strategic Orientation Change Leadership Collaboration & Influence Results Orientation

Core Competencies

FUNCTIONAL LEADER People & Organisation

Development Team Leadership Functional Expertise

Core Competencies

BUSINESS STRATEGIST

Commercial Orientation Market Knowledge

External Customer Focus

Types of CIOs

Commercial Orientation

Market Knowledge External Customer

Focus

Stakeholder Relations Peer

Systems efficiency & effectiveness

Security Data Management

Staff Expertise Business

Leader Focus External

Stakeholder relations Partner

Staff Expertise Process

Leader Focus Enterprise

Stakeholder Relations Service Provider

Staff Enterprise Systems

Leader Focus Internal

Strategic Orientation Change Leadership Collaboration &

Influence Results Orientation

People & Organisation Development

Team Leadership Functional

Expertise

Optimised business processes

Globalisation Enterprise agility

Business innovation Competitive advantage Decision-making

intelligence

Future-State CIO® C

om

pet

en

cie

s A

pp

lied

Cre

dib

le

Infl

ue

nti

al

Gam

e C

ha

ng

er

Val

ue

De

live

red

Fu

nc

tio

na

l Tra

ns

form

ati

on

al

Bu

sin

ess

Journey: The Future-State CIO®

Commercial Orientation

Market Knowledge External Customer

Focus

Stakeholder Relations Peer

Systems efficiency & effectiveness

Security Data Management

Staff Expertise Business

Leader Focus External

Stakeholder relations Partner

Staff Expertise Process

Leader Focus Enterprise

Stakeholder Relations Service Provider

Staff Enterprise Systems

Leader Focus Internal

Strategic Orientation Change Leadership Collaboration &

Influence Results Orientation

People & Organisation Development

Team Leadership Functional

Expertise

Optimised business processes

Globalisation Enterprise agility

Business innovation Competitive advantage Decision-making

intelligence

Future-State CIO® C

om

pet

en

cie

s A

pp

lied

Cre

dib

le

Infl

ue

nti

al

Gam

e C

ha

ng

er

Val

ue

De

live

red

Fu

nc

tio

na

l Tra

ns

form

ati

on

al

Bu

sin

ess

Functional Stage

Functional /Credible

• Optimise IT Operations • Emphasis on Functional competencies

Leader Focus Internal

Staff Expertise Systems

• Teams with strong functional skills • Process disciplines (e.g. ITIL), PMO

Stakeholder Relationships Service Provider • Meet Influencers – quick wins

• Portfolio Governance

• IT runs like a business

• Fixing what is broken

Functional

Systems efficiency & effectiveness

Security

Data Management

IT Reputation Credible

Value Derived:

Commercial Orientation

Market Knowledge External Customer

Focus

Stakeholder Relations Peer

Systems efficiency & effectiveness

Security Data Management

Staff Expertise Business

Leader Focus External

Stakeholder relations Partner

Staff Expertise Process

Leader Focus Enterprise

Stakeholder Relations Service Provider

Staff Enterprise Systems

Leader Focus Internal

Strategic Orientation Change Leadership Collaboration &

Influence Results Orientation

People & Organisation Development

Team Leadership Functional

Expertise

Optimised business processes

Globalisation Enterprise agility

Business innovation Competitive advantage Decision-making

intelligence

Future-State CIO® C

om

pet

en

cie

s A

pp

lied

Cre

dib

le

Infl

ue

nti

al

Gam

e C

ha

ng

er

Val

ue

De

live

red

Fu

nc

tio

na

l Tra

ns

form

ati

on

al

Bu

sin

ess

Transformational Stage

Transformational/Influential

• Enterprise processes versus silos • Emphasis on collaboration, change and IT Strategy

Leader Focus Enterprise

Staff Expertise Processes • Knowledge of enterprise processes • Embed mangers in business units

Stakeholder Relationships Partner • Involvement in business committees

• Business value-related IT metrics

• Outsourcing • Deeper leadership

Transformational

IT Reputation Influential

Value Derived:

Optimised business processes

Globalisation

Enterprise agility

Systems efficiency & effectiveness

Security

Data Management

Commercial Orientation

Market Knowledge External Customer

Focus

Stakeholder Relations Peer

Systems efficiency & effectiveness

Security Data Management

Staff Expertise Business

Leader Focus External

Stakeholder relations Partner

Staff Expertise Process

Leader Focus Enterprise

Stakeholder Relations Service Provider

Staff Enterprise Systems

Leader Focus Internal

Strategic Orientation Change Leadership Collaboration &

Influence Results Orientation

People & Organisation Development

Team Leadership Functional

Expertise

Optimised business processes

Globalisation Enterprise agility

Business innovation Competitive advantage Decision-making

intelligence

Future-State CIO® C

om

pet

en

cie

s A

pp

lied

Cre

dib

le

Infl

ue

nti

al

Gam

e C

ha

ng

er

Val

ue

De

live

red

Fu

nc

tio

na

l Tra

ns

form

ati

on

al

Bu

sin

ess

Strategist Stage

Strategist/Game Changer

• Deep knowledge of industry (market, competition, customers) • Emphasis on commercial orientation and customer insight

Leader Focus External

Staff Expertise Business • Delegate operations and functional oversight

• Customer-facing structures in IT • Rotate leaders through business roles

Stakeholder Relationships Peer • Collaboration on businesses strategy

• Cultivate Board relationship

• Call on end customers

Strategist/Game Changer

IT Reputation Game Changer

Value Derived:

Business innovation

Competitive advantage

Decision-making intelligence

Optimised business processes

Globalisation

Enterprise agility

Systems efficiency & effectiveness

Security

Data Management

Journey to the Future-State CIO

Commercial Orientation

Market Knowledge External Customer

Focus

Stakeholder Relations Peer

Systems efficiency & effectiveness

Security Data Management

Staff Expertise Business

Leader Focus External

Stakeholder relations Partner

Staff Expertise Process

Leader Focus Enterprise

Stakeholder Relations Service Provider

Staff Enterprise Systems

Leader Focus Internal

Strategic Orientation Change Leadership Collaboration &

Influence Results Orientation

People & Organisation Development

Team Leadership Functional

Expertise

Optimised business processes

Globalisation Enterprise agility

Business innovation Competitive advantage Decision-making

intelligence

Future-State CIO® C

om

pet

en

cie

s A

pp

lied

Cre

dib

le

Infl

ue

nti

al

Gam

e C

ha

ng

er

Val

ue

De

live

red

Fu

nc

tio

na

l Tra

ns

form

ati

on

al

Bu

sin

ess

The Future-State CIO®

Commercial Orientation

Market Knowledge External Customer

Focus

Stakeholder Relations Peer

Systems efficiency & effectiveness

Security Data Management

Staff Expertise Business

Leader Focus External

Stakeholder relations Partner

Staff Expertise Process

Leader Focus Enterprise

Stakeholder Relations Service Provider

Staff Enterprise Systems

Leader Focus Internal

Strategic Orientation Change Leadership Collaboration &

Influence Results Orientation

People & Organisation Development

Team Leadership Functional

Expertise

Optimised business processes

Globalisation Enterprise agility

Business innovation Competitive advantage Decision-making

intelligence

Future-State CIO® C

om

pet

en

cie

s A

pp

lied

Cre

dib

le

Infl

ue

nti

al

Gam

e C

ha

ng

er

Val

ue

De

live

red

Fu

nc

tio

na

l Tra

ns

form

ati

on

al

Bu

sin

ess

Leader Focus®

Leader focus

• Provide transparency

• IT as part of processes and customer interaction

• Learn more about your company’s market

• Caution with mergers, acquisition and new environments

• Business leader focus: company risk, bottom line and services

Internal Enterprise External

Commercial Orientation

Market Knowledge External Customer

Focus

Stakeholder Relations Peer

Systems efficiency & effectiveness

Security Data Management

Staff Expertise Business

Leader Focus External

Stakeholder relations Partner

Staff Expertise Process

Leader Focus Enterprise

Stakeholder Relations Service Provider

Staff Enterprise Systems

Leader Focus Internal

Strategic Orientation Change Leadership Collaboration &

Influence Results Orientation

People & Organisation Development

Team Leadership Functional

Expertise

Optimised business processes

Globalisation Enterprise agility

Business innovation Competitive advantage Decision-making

intelligence

Future-State CIO® C

om

pet

en

cie

s A

pp

lied

Cre

dib

le

Infl

ue

nti

al

Gam

e C

ha

ng

er

Val

ue

De

live

red

Fu

nc

tio

na

l Tra

ns

form

ati

on

al

Bu

sin

ess

® Expertise Staff

Staff Expertise

• An IT leadership tier with business and technology skills

• Import senior IT leadership

• Link competencies to leadership positions

• On-the-job opportunities in cross-functional roles

• Seek mentors from business functions for top IT staff

• Involve staff in business exposure/education

• Involvement in highly visible non-IT programs

• Give confidence through understand the impact of change

Systems Processes Business

Commercial Orientation

Market Knowledge External Customer

Focus

Stakeholder Relations Peer

Systems efficiency & effectiveness

Security Data Management

Staff Expertise Business

Leader Focus External

Stakeholder relations Partner

Staff Expertise Process

Leader Focus Enterprise

Stakeholder Relations Service Provider

Staff Enterprise Systems

Leader Focus Internal

Strategic Orientation Change Leadership Collaboration &

Influence Results Orientation

People & Organisation Development

Team Leadership Functional

Expertise

Optimised business processes

Globalisation Enterprise agility

Business innovation Competitive advantage Decision-making

intelligence

Future-State CIO® C

om

pet

en

cie

s A

pp

lied

Cre

dib

le

Infl

ue

nti

al

Gam

e C

ha

ng

er

Val

ue

De

live

red

Fu

nc

tio

na

l Tra

ns

form

ati

on

al

Bu

sin

ess

® Stakeholder Relations

Stakeholder Relations

• Introduce and explain new terminology

• Support from other business leaders - (CEO)

• Solutions that can create new market value

• Identify and improve neglected systems or processes

• Stakeholder perceptions vary - adjust approaches

Service provider Partner Peer

Matching CIOs and organisations

FU

TU

RE

-STA

TE

CIO

®

CIO Types in organisations

Performance/

Expectation

Gap

Performance/

Expectation

Gap

CIO type needed Over qualified CIO Underdeveloped CIO

Basic hygiene

PCs, printers, phones, access…

Desk top systems

Email, office, Skype, calendars …

Back Office systems

Payroll, HR, Accounts, Content mgnt…

Production systems

Manufacturing, Banking, Inventory, Sales…

Customer facing systems

Online sales, personal banking, CRM… CEO & Business

CIO Mismatch 1

CIO Focus

Basic hygiene

PCs, printers, phones, access…

Desk top systems

Email, office, Skype, calendars …

Back Office systems

Payroll, HR, Accounts, Content mgnt…

Production systems

Manufacturing, Banking, Inventory, Sales…

Customer facing systems

Online sales, personal banking, CRM…

CEO & Business

CIO Mismatch 2

CIO Focus

CIO HANDBOOK FOR NON-IT EXECUTIVES

1.Assessment tool

2.Selection matrix

3.Nine core competencies

4.Future-State CIO framework

Assessment Tool

Service | Are you happy with you the level of service provided by IT?

Reliability | Is your IT reliable?

Technology Roadmap | Does IT have an efffective technology plan?

Transparency Cost | Do you have transparency on IT costs?

Transparency Risk | Do you have transparency in IT risk?

Transformation | Do you want IT to be an enabler in transforming your business?

Process Improvement | Are you looking to re-define your business processes?

Agility | Is IT keeping pace with business change?

Business Roadmap | Do you have aligned business and technology plans?

Effective Project delivery | Are your projects run efficiently?

External Customer Focus | Do you want IT to enable new revenue streams?

Strategy | Does IT have a long-term strategic business roadmap?

Operational Focus

Transformational Focus

Business Strategist/Future-State CIO 0%

10%

20%

30%

40%

50%

60%

70%

% Time Allocatate toOperational Efficency

% Time Allocated toTransformational

Activities

% Time Allocated toStratigc Business

Enablement

Strategic Focus

Allocation of time in % terms for each CIO Archetype

Exp

eri

en

ce a

nd

Se

nio

rity

Increasing business value

Agility to respond to changing business demands and opportunities

Effective alignment of technology to business needs

Defined business roadmap

Quality information which consistently drives smart decisions

Dependable project management processes (transformational project focus)

Optimised business processes

Long-term strategic roadmap (bus. aligned)

Portfolio view of projects & programs

Understand customers & competition

Drive competitive advantage

Deliver business innovation

Identify/enable new business

Operational/Functional Head

Focus: Internally on running ICT function

Relationship: Service provider/cost centre

Transformational Head

Focus: Alignment, enablement, process

Relationship: Trusted ICT partner

Business Strategist

Focus: Business strategy + innovation

for competitive advantage

Relationship: True business partner

Reliable systems & Quality service

Established technology roadmap

Strong & transparent financial management

Appropriate and transparent operational & reporting governance

Dependable Business as Usual (BAU) project delivery (on scope, on time, on budget)

Choosing the Right IT Executive

© 2013 IDG Communications Pty Ltd ABN 14 001 592 650. All rights reserved. Reproduction in whole or in part in any form or medium without written permission of IDG Communications Pty Ltd is prohibited

QUESTIONS

+61 2 9326 5547

+61 411 024 189

[email protected]

www.nevinconsulting.com

peternev10

Becoming the Future-State CIO

Peter Nevin

Peter Nevin

Becoming the Future-State CIO

+61 2 9326 5547

+61 411 024 189

[email protected]

www.nevinconsulting.com

peternev10