The Emerging Role Of The Cio


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Presentation by Nirvesh Sooful on the topic of “The Emerging Role of the CIO: Leader or Technologist, Visionary or Implementer, Maverick or Collaborator” at the 2nd Annual CIO Challenge 2007 on 14&15 November 2007 at The Park Hyatt in Johannesburg. The conference was co-hosted with Deloitte.

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  • The Emerging Role Of The Cio

    1. 1. Nirvesh Sooful CIO, City of Cape Town
    2. 2. "Dealing with a complex web of stakeholders is a challenge. It's the cross-group decisions that are the hardest to implement." "Overcoming resistance to change, both in the enterprise and in the IT organization is more of a challenge than I expected. I wish I had spent more time on the change aspects of what we where doing." "We have the right number of people, I'm just not sure they're the right people." "Communicate, communicate: you have to repeat yourself 30 times – and I'm still not sure they get it."
    3. 3. <ul><li>CIOs play two primary roles: </li></ul><ul><ul><li>Senior IT leader </li></ul></ul><ul><ul><li>Business executive </li></ul></ul><ul><li>These two roles can be at odds with one another </li></ul><ul><li>These roles require divergent skill sets </li></ul>Like the Roman god Janus, CIOs must look back on a solid past and to the future to understand new challenges …
    4. 4. Enterprise Leadership Contribute to Enterprise Strategy & Future Lead an Effective IS Organization Operations Individual Deliver Reliable IT Services Build Strong Relationships Driving IT innovation in business and aligning IT strategy Supporting business change initiatives Supplying and supporting the infrastructure
    5. 5. <ul><li>CIOs will need to create “enterprise leverage” from agility, information or innovation </li></ul><ul><li>Business demands are increasing as 63% of enterprises expect to grow faster than the market </li></ul><ul><li>Executives expect CIOs to improve current and new capabilities </li></ul><ul><li>CIO must replace “More with less” with “Make a difference with what they have” </li></ul><ul><li>CIOs will need to evolve IT to meet these expectations </li></ul><ul><li>The Gartner Executive Programs CIO Survey is the largest and most comprehensive of its kind </li></ul><ul><li>The 2007 CIO Survey includes input from more than 1,400 CIOs worldwide </li></ul><ul><ul><li>Encompasses IT budgets totaling more than $100 billion </li></ul></ul><ul><ul><li>Covers all major industries in more than 30 countries </li></ul></ul><ul><ul><li>Average IT budget of respondents is $90 million </li></ul></ul>
    6. 6. Gartner - Creating Enterprise Leverage: The 2007 CIO Agenda The Business Adapted from: The E-Myth by M. Gerber IN IN the business issues concentrate on current operations and improvements. “In the business” issues focus on the current fiscal year. These include the infrastructure required to operate the business effectively at scale. The Business Success requires CIOs and IT to work both &quot;IN&quot; and &quot;ON&quot; the business. ON the business issues deal with the future shape of the enterprise in terms of its products, services and structure. CIOs working on transformational change are working “on the business.” ON
    7. 7. Role of the IT Role of the CIO Technology Process People Business Conversation Effective Operations Joint Decision Making Business Leadership Build the core of IT Build the core of business process Build the core of the business “ Super” Technical Operations Manager Business Partner Business Leader Stabilize the technical infrastructure Build the application platform Build technology for competitive advantage Establish repeatable processes in IT Establish effective IT governance and a PMO Evolve governance and PMO toward strategic investments Build and source required technical skills Build business acumen and analytical skills Build business relationship and change management skills Demonstrating the performance of IT services (availability, quality of service, etc.) Applying technology to transform business processes and activities Using information and technology to create competitive difference and meet strategic goals
    8. 8. Creating Enterprise Leverage: The 2007 CIO Agenda IT Service Delivery Governance and Leadership Project Delivery IT Agility Technology is an accelerator Working “ON” the business … CEO/CIO Relationship Meeting current commitments Working on what’s important … Now and In the future … Enterprise Agility
    9. 9. Driving change in large organisations needs the active sponsorship of very senior people. Project Ukuntinga, which was the “SAP ERP” programme in the City of Cape Town saw the establishment of a special relationship between the roles of key Exco members (senior politicians), EMT members (senior officials) and IT Leadership in catalyzing, sponsoring and achieving meaningful and sustainable change. This presentation focuses on a number of key factors that were instrumental in ensuring the sustainable success of the Project Ukuntinga. These factors have been presented as a number of “tips ” to people contemplating projects like this. For lack of a better name, I will call this group the IT Leadership The City of Cape Town is the first local authority in South Africa to perform a large scale SAP implementation . This project was focused on aggressively driving transformation in the City of Cape Town. It was large, complex, difficult and extremely high risk. Change management was critical to the success of the project – and had to be considered even before the project had started. An example
    10. 10. <ul><li>Years ago, Machiavelli described the leadership difficulties of bringing about a serious change in government: </li></ul><ul><li>. . . there is nothing more difficult to plan, more uncertain of success, or more dangerous to manage than the establishment of a new order of government; for he who introduces it makes enemies of all those who derived advantage from the old order and finds but lukewarm defenders among those who stand to gain from the new one. [i] </li></ul><ul><li>Niccolo Machiavelli </li></ul>We experienced this in this process and at times it seemed like we ‘went to war with our organisation’ It is important to understand this and be prepared for this.
    11. 11. The IT Leadership today has a responsibility to be more than a custodian of IT infrastructure and to ‘run IT’ Tip 1: <ul><li>The IT Leadership needs to be the conduit of new ideas from outside the organisation. The IT Leadership must be able to: </li></ul><ul><ul><li>Translate new ideas and make them relevant to the organisation. </li></ul></ul><ul><ul><li>Be a business person first and a technologist second, so as to communicate with the organisation in a language they understand. </li></ul></ul><ul><ul><li>Transform ideas into sound business principles: </li></ul></ul><ul><ul><ul><li>Business case </li></ul></ul></ul><ul><ul><ul><li>Executive ( sponsorship ) control: phased delivery </li></ul></ul></ul><ul><ul><ul><li>Organisation-wide programme governance approach </li></ul></ul></ul><ul><ul><ul><li>Select the best external partners to complement internal skills </li></ul></ul></ul>The IT Leadership role demands leadership skills, business acumen and a new mindset, as well as technological competence
    12. 12. Build credibility by consistently delivering and following through Tip 2 : <ul><li>Need to be able to deliver – on-time, on-budget and according to quality standards: </li></ul><ul><ul><li>Delivery builds credibility. </li></ul></ul><ul><ul><li>People listen to you (whether they like you or not) </li></ul></ul><ul><ul><li>Helps to justify applications for more money and or resources </li></ul></ul><ul><ul><li>Delivery is a core differentiator. Good ideas can get you only so far, consistent delivery will allow you to push the envelope and really drive transformation </li></ul></ul><ul><ul><li>People (especially key politicians) know who can deliver, and you will be surprised at the how they will open doors for you </li></ul></ul>Deliver, Deliver, Deliver!!!! Delivery is the only thing that really gets you in the game, and Consistent delivery is the only thing that keeps you there!!!
    13. 13. “ Show me the money!” Tip 3 : <ul><li>There must be commitment to a tangible business case. </li></ul><ul><ul><li>The business case must be real and show achievable benefits not hard to quantify productivity gains. At least some benefits need to be quantified </li></ul></ul><ul><ul><li>Need to explain how the benefits will be extracted </li></ul></ul><ul><ul><li>Need to explain how success will be measured </li></ul></ul><ul><ul><li>The business case must be aligned to the strategy of the organisation </li></ul></ul>Any programme, IT or otherwise, will only be sustainable if it delivers a value proposition. Creating Transactional Excellence for a new City Creating Public Sector Value - Igniting Citizen Loyalty Financial Value Social Value Citizen Value Visibility of Information – Igniting Organisational Change
    14. 14. “ Politicians only get involved when they realise that – if IT fails they will fail ” Improved Efficiency Med. High Result: Continue doing more of the same. Advance Social Upliftment Financial & Organisational Transformation Enabled by ERP Programme. High Advance social upliftment Information transparency Enhance Organisational Performance Improve service delivery Address historical backlog and service Inequality – Social Upliftment Improve Service Del. Long-term financial Sustainability and Improved Efficiencies Create financial value Enable Social / Political Conscious policies
    15. 15. FINANCIAL VALUE: Improved Cash Position Go-live Planned loan of R300 mil not taken up
    16. 16. <ul><li>“ Good News” </li></ul><ul><li>“ Trend Setter” </li></ul><ul><li>Compliance: Unqualified Financial Audits </li></ul><ul><li>Both National and International Recognition. </li></ul><ul><li>But, its actually all about what the newspapers say – as demonstrated via the following sequence of newspaper articles: </li></ul>Jan 2003 Sept 2003 Oct 2005 Go-live
    17. 17. Financial VALUE Social VALUE Public Sector Value Creating Measures Quantifying only the tip of the Iceberg
    18. 18. <ul><li>Large disparity in the socio-economic status of citizens </li></ul><ul><li>Identifying citizens which can – but don’t pay; versus </li></ul><ul><li>Citizens which do not have the means to pay. </li></ul><ul><li>Support the vulnerable members of society. </li></ul><ul><li>Examples of social responsible Policies and Tariff- structures enable via the ERP Program: </li></ul><ul><li>Free Basic Utility Services. </li></ul><ul><li>Grants for the Indigent </li></ul><ul><li>Debt relief through arrangements and incentives </li></ul>
    19. 19. Financial VALUE Social VALUE Citizen VALUE Public Sector Value Creating Measures Quantifying only the tip of the Iceberg
    20. 20. Line Departments Responsible to Execute Work Depot Depot Depot Depot Depot Depot Revenue Services Control Revenue Services Control Water Services Healthervices Control Revenue Services Control Revenue Services Control Revenue Services Control Revenue Services Control Service etc. Centre Electricity Billing Masterdata Debt mgt. Debtors & cash Technical Services Depot Depot Depot Depot Depot Depot City interacts with various Stakeholders with differing needs Residents Businesses Citizens wish to use their preferred channel of communication letter telephone face to face fax email web SMS intranet Other Citizens interact with various City Services all the time Revenue Housing Electricity Motor Vehicle Reg. Roads Water Valuations Solid waste Etc. Citizens need convenient Contact Centres – remove the complexity of the Org Corporate Contact Centre Walk in Centres Business Processes Technology Enabled Work Management System Depot Depot Depot Depot Depot Depot Depot Depot Depot Depot Depot Depot
    21. 21. Generate Works Request Via SAP-notifications The Corporate Works Management Process Receive Execute Report Assign Assign Close Close
    22. 22. We are learning that Citizen Value leads to Citizen Loyalty. <ul><li>Citizens demand Private Sector Convenience: </li></ul><ul><ul><li>Itemized Billing and Consolidated Invoicing. </li></ul></ul><ul><ul><li>Pay Municipal Account at any Cash Hall across the City, via Internet, Debit / Stop Order, 3rd party vendors etc. </li></ul></ul><ul><ul><li>Centralised Call Centre for account queries and defect reporting. </li></ul></ul><ul><ul><li>Citizens demand that their requests be actioned </li></ul></ul><ul><ul><li>Works Management via Generic Enterprise-wide Process </li></ul></ul><ul><ul><li>Citizens are looking for Flexibility of Service </li></ul></ul><ul><ul><li>Account available in 3 official Languages </li></ul></ul><ul><ul><li>SOUND FINANCIAL SYSTEMS ARE IMPORTANT – BUT IT’S AN ENTRY LEVEL REQUIREMENT ........... </li></ul></ul>
    23. 23. Logistics Human Resources Real Estate Revenue Management Finance R/3 and IS-U Business Warehouse Corporate Performance Management Customer Perspective Internal Business Process Perspective Financial Perspective Innovation & Learning Perspective Vision and Strategy
    24. 27. Establish Support Organisation Value Creation CWMP PSRM Corporate Performance Management BW
    25. 28. <ul><li>In the dialogue between Senior Politicians, Senior Management and IT Leadership, the IT Leadership must: </li></ul><ul><ul><li>Bring new ideas </li></ul></ul><ul><ul><li>Deliver them </li></ul></ul><ul><ul><li>Show the benefits </li></ul></ul><ul><li>… in a way that will create a sustainable legacy for the organisation. </li></ul>Use techniques to manage change, ensure sustainability and get people to work together. Tip 4 : Deliver something that will remain and continue adding value, long after the project team has walked away. Important IT Leadership qualities include their ability to listen, to influence, to collaborate, and to get people motivated and working well together.
    26. 29. The “business preparation” stage focuses on sponsorship and communication; “deployment” focuses on training and performance support; and, finally, the “sustainability” stage includes performance management activities. <ul><li>Shift from Leadership </li></ul><ul><li>to Enablement </li></ul><ul><li>Involve and educate the users </li></ul><ul><li>Strong management support still required </li></ul><ul><li>Focus on adoption of new behaviours and attitudes </li></ul><ul><li>Concept absorbed as core part of the organisation </li></ul><ul><li>Leading by example not directive </li></ul><ul><li>Initial focus on Management </li></ul><ul><li>and Leadership </li></ul><ul><li>Communicate the vision </li></ul><ul><li>Involve senior executives </li></ul><ul><li>Define milestones and measures </li></ul><ul><li>Transition from Management to Ownership </li></ul><ul><li>Long term business user must accept responsibility </li></ul><ul><li>Continued support and focus on training / education </li></ul>Performance Time Integrating an intensive change management process into Project Ukuntinga ensured successful delivery. Leadership Enablement Enablement Ownership Navigation Leadership
    27. 30. Obtain visible, committed and hands on Executive Sponsorship Tip 5: <ul><li>Key role for Executive Sponsors </li></ul><ul><ul><li>minimizing customization, </li></ul></ul><ul><ul><li>Getting best resources (people), </li></ul></ul><ul><ul><li>keeping officials on track, </li></ul></ul><ul><ul><li>driving change/ transformation in the organisation, </li></ul></ul><ul><ul><li>‘ bulldozing’ opposition, </li></ul></ul><ul><ul><li>Securing funding </li></ul></ul><ul><ul><li>Shorten decision making processes </li></ul></ul><ul><ul><li>etc. </li></ul></ul>Executive Sponsors need delegated authority. This implies that they need to be senior, trusted and political ‘heavy-weights’ (if you really want to get things done).
    28. 31. Build credibility by consistently delivering and following through Tip 2 : The IT leadership today has a responsibility to be more than a custodian of IT infrastructure and to ‘run IT’. Tip 1: The CIO has a key role in conceiving, delivering and sustaining change and organisational transformation. These require the CIO to have a wide divergent set of skills and to adopt different, sometimes contradicting roles in the organisation.   Use techniques to manage change, ensure sustainability and get people to work together Tip 4: “ Show me the money!” Tip 3 :   Obtain visible, committed and hands on Executive Sponsorship Tip 5 : 
    29. 32. Thank You Questions/ Discussion Contacts: [email_address] Copies of this and other related presentations, as well as further discussion can be found at