In this chapter, the following content will be discussed: Chief Information officer profile: - demographics, - salary data, - employment information, - topic relevance; important for general managers to understand this pivotal senior position; communication, leadership, and people skills – essential to CIO success.
CIO Lecture CIO Today Lecture Summary n n n Chief Information Officer profile - Demographics - Salary data - Employment information - Topic relevance Important for general managers to understand this pivotal senior position Communication, leadership, and people skills – essential to CIO success The Office of the CIO? n n Some believe the office of the CIO is so broad it should be handled by a team Four ‘positions’: Chief Information Officer – Heads IS and works with top management, customers and suppliers Chief Technology Officer – Heads IT planning, which involves architecture and exploration of new technologies 2-3 The Office of the CIO? Chief Operations Officer – Chief Project Officer – n Heads day-to-day IS operations Oversees all projects and project managers IT is so critical to enterprise success and the knowhow needed to run it so deep and wide = management needs to become a team effort Whither n CIOs? Different periods of recent history have seen executives with different backgrounds “running the show ă ă ă Manufacturing = in the early 1900s Sales and Marketing – 30s to 50s Finance – 70s to 90s n ă Problems and scandals Future perhaps now CIOs have the most appropriate backgrounds to run companies 2-5 Role of the CIO Is Evolving Quotable quote: “It is no longer useful or meaningful to talk about the ‘role of the CIO.’ ” – Barb Gomolski, senior research director, Gartner, Nov 27, 2000 n n Rationale ¨ No single “one-size-fits-all” position description ¨ CIOs wear many hats; work in various roles ă Different types of CIOs ¨ CIOs are driven by background and interests ¨ Industry and organizational differences affect role Chief Information Officer CIO n Job title is commonly given to the senior executive in charge of information technology and computer systems that support an organization’s business goals n As IT has become increasingly important, the CIO is typically viewed as a key strategist within the organization n In many companies, the CIO reports directly to the Chief Executive Officer (CEO) In some companies, the CIO sits on the Executive Board n Usually, a CIO proposes IT strategies to achieve business goals and works within an established budget CIO Demographics n n n n n n n CIO 87% are male 70% moved up through the IT ranks years, months is average time as CIO years, months is average time in current job 40% report to CEO 85% are responsible for enterprise-wide IT 76% not plan to outsource outside of U.S - Source: CIO Magazine CIO Regional Salary Comparison Percentile Source Midwest: Chicago East Coast: West Coast: New York Los Angeles CIO Southeast: Miami 25th Percentile $173,434 $186,163 $179,640 $157,841 50th Percentile $214,922 $230,696 $222,611 $195,598 75th Percentile $272,348 $292,337 $282,093 $247,862 CIO in the Government CIO In 1996, President Clinton signed what has become known as the Clinger-Cohen Act n This act required majorFederal Agencies to establish the position of CIO - CSA High Technology Research Database with Aerospace 2001 n CIO CIO’s Biggest IT Success at Spartech n n n n Had upper management recognize IT as an important department in the organization Implementation of VOIP network through out the company Implementation of Oracle financial systems Provide maximum support with minimum staff CIO The Biggest IT Challenges at Spartech Corporation n Proving IT can deliver on it’s promises n Smooth implementation of the ERP project n Keeping up on cutting-edge technology How Does IT Drive Business at Spartech? CIO n IT is “almost” a partner at Spartech n years ago, IT was a “necessary evil.” CIO CIO Relationship with CEO Reports to the CFO n Weekly senior management meetings n Average CIO communication with CEO occurs to times per week n “IT is almost a partner” at Spartech n CIO Trends Impacting Spartech in the Next Five Years n n n Oil Prices - Largest supplier of plastic sheets in America Healthcare Costs - Healthcare costs are rising China - China becoming a “major player” in the market CIO’s Most-Important Lesson Learned n Don’t over promise n Don’t jump the gun on technology n Under promise, over deliver n Develop an efficient team CIO CIO The ‘Untold’ Story from the CIO Perspective n The leadership the position requires CIO to have n CIO is salesman n CIO has to hire good people n Loyalty is a “two-way street” n CIO Best Practices: People Skills CIO IT executives fight image of being too technical, introverted and tactical ă Santa Clara University study notes that stereotyping creates missed organizational opportunities ă Study proposes that IT work “provides the best possible training ground for senior managers.” 14 n Technical skills AND people skills are equally important ă University of Dayton study found no differences between CIOs with technical backgrounds and those with general management backgrounds 15 n CIO Best Practices: Innovation CIO IT innovation is important for leading companies ă ă ă ă ă ¨ ¨ ¨ CIO Magazine study found 71% of CIOs stated that innovation was a key element of their company’s business strategy 80% of respondents stated that the CIO is responsible for corporate innovation 16 More than half of 83 CIOs in the study said innovative IT ideas have increased in the past two years 17 65% of CIOs in the study said developing innovative IT ideas is a “significant or dominant aspect of their roles.” 17 CIO should be committed to lead innovation; CEO should support optimistically for success 18 CIO should help business units identify IT new solutions 19 Smart companies partner with CIO to develop innovative ebusiness initiatives 20 CIO role defined as “teacher” or “prophet” vs “technologist” 21 n n CIO Best Practices: Communication CIO Clear communication is key CIO should avoid “technospeak” and jargon 22 Organizational communication has a significant impact on: ă Employee attitudes ¨ Employee behavior ¨ Employee perceptions about managing change 23 Quotable quote worth quoting again: “It’s all about communication and sharing information.” – Pat McNamee, CIO, Express Scripts n CIO Lessons Learned: Typical CIO Awake at Night IT project delays Staffing and user demands n Competition n Management changes n Vendors Quotable quote: "IT is like the CIA Nobody knows our successes, but the failures are public knowledge." – Shawn Schwegman, CIO, Overstock.com 24 n n n n n n CIO Lessons Learned: Status Impacts CIO Role CIOs in many organizations are challenged by internal perceptions IT is often perceived as having a lower status than other business functions 25 Status can be defined as “recognition from the organization of the IT function’s capabilities and value.” 25 Status does matter for CIOs Corporate culture affects status Lessons Learned: Outsourcing CIO Room for outsourcing in non-mission critical IT functions n Outsourcing should only be done on call center functions n Cognizant Technology Solutions is the latest offshore services firm to report blockbuster year-over-year growth - Information Weekly 11/1/2005 26 n Lessons Learned: IT Effectiveness n n n n CIO Slow economic recovery created lean IT organizations Opportunity to determine IT effectiveness CIOs should have metrics for determining IT effectiveness Consequence of not measuring IT effectiveness is corporate ambiguity and perception of the CIO “flying blind” 27 CIO Summary n n n CIO CIO role is still relevant Important for general managers to understand this pivotal senior position Communication, leadership, and people skills – essential to CIO success Closing quote for discussion: “The role of the CIO could disappear within 10 years… it’s only a matter of time until every ‘C’ level officer needs to have the same level of information as the CIO.” J.P Rangaswami, CIO, Dresdner Kleinwort Wasserstein, at the 2005 Triple i Convention 28 .. .CIO Today Lecture Summary n n n Chief Information Officer profile - Demographics - Salary data - Employment information - Topic relevance Important for general... Schuster, CIO CIO How does IT drive business at Centene? n n n n CIO IT drives the business at Centene IT should be reacting to the business IT should develop systems that complement the business. .. Customer-based reporting Regional health information systems The ‘Untold’ Story from the CIO Perspective n n n n n CIO CIO is not a technology expert CIO has more “power” than he actually has CIO