Presenter’s name Presenter’s title Abbie Lundberg, Editor in Chief, CIO
Depending on their primary focus and predominant activities, CIOs can be classified into three types: FUNCTION HEADS Focused on running the IT organization, achieving IT operational excellence and providing reliable, effective services TRANSFORMATIONAL LEADERS Focused on creating change for their enterprise through process transformation and a close partnerships with business operations BUSINESS STRATEGISTS Focused on driving strategy for competitive advantage through activities that face across the enterprise and externally Based on CIO Executive Council Future State CIO model
CIOs Allocate Time Across Role Types A typical CIO
Current and Future Distributions Current Distribution of CIOs Future Distri-bution of CIOs 0 25 50 75 100
Evolutionary Divergence: The Rise of the Business Strategists <ul><li>“ It’s anathema to me that a CIO can live a long and happy life as an operationally focused CIO. Titles should mean something.” – Bob Badavas, President & CEO, TAC Worldwide </li></ul><ul><li>“ I think the CIO role will be offered less and less to those coming purely up an IS track. A lot of industries are evolving to the point where they will want a CIO to be half IS and half business.” – George Chappelle, former CIO, now Chief Supply Chain Officer, Sara Lee Corp. </li></ul><ul><li>“ If CIOs are only looking out for IT, and not doing their jobs at the strategic level, that path leads to outsourcing and irrelevancy.” – Gerry McCartney, CIO, Purdue University. </li></ul>
Executive Leadership skills: Nine core competencies Egon Zehnder International
“ Outstanding” CIOs vs. CEOs Egon Zehnder International
Trends in the role, and how Business Strategists are different
Most CIOs Are Members of the Executive Committee
More CIOs Report to the CEO than Any Other Position
CIOs Spend Most of Their Time with Staff NOTE: Respondents were asked to estimate the amount of time spent with each group. Q: Of the time you typically spend interacting with each of the following constituencies, please estimate the percent of your time spent with each group.
Business Strategists Spend More Time in the Business Q: Of the time you typically spend interacting with each of the following constituencies, please estimate the percent of your time spent with each group.
Leadership Competencies Different Among Types Q: Which of the following executive leadership competencies is most critical to your current role? Choose three.
Business Strategists More Focused on External Processes Q: Which business processes are you currently improving with IT? Please check all that apply. 32% 39% 39% 38% Risk management 33% 39% 40% 39% Inventory management 56% (4) 39% 34% 39% Marketing 41% 39% 42% 40% Order/invoice processing 41% 45% (5) 37% 42% Supply chain/logistics 63% (3) 42% 36% 42% Sales 40% 39% 48% (4) 43% (5) Asset management/maintenance 48% 48% (4) 47% (5) 48% (4) Compliance 54% (5) 57% (3) 51% (3) 54% (3) Human resources 81% (1) 67% (2) 67% (2) 69% (2) Customer service/support 70% (2) 69% (1) 73% (1) 71% (1) Accounting & finance Bus. Strategist Transfrm'l Leader Function Head Total Q: Which business processes are you currently improving with IT?
Personal & Career Payoff for Business Strategists <ul><li>Seats on the executive committee: 84% (vs. 70% and 68%) </li></ul><ul><li>Report to CEO: 51% (vs. 42% and 39%) </li></ul><ul><li>More money! 44% more than function heads and 23% more than transformational </li></ul>
The CIO’s Choice Traditional IT Focus on… Operations Efficiency Optimization Business Technology Leadership Strategy Innovation Enablement
Questions <ul><li>Do CIOs and up and coming leaders really have a choice? </li></ul><ul><li>Chicken and egg – enlightened c- level leadership or enlightened CIO? </li></ul><ul><li>Gaining new competency – classroom, experience, mentoring, - how to grow? </li></ul><ul><li>Scenarios – What to Do? </li></ul><ul><li>You are there, your staff isn’t </li></ul><ul><li>You are there, your boss and CEO aren’t </li></ul><ul><li>You are exceeding at today’s requirements but clearly see gaps in tomorrow’s </li></ul>
Handouts and more resources … <ul><li>State of the CIO 2008 reports http://www.cio.com/article/163700 </li></ul><ul><li>Strategic Impact Assessment http://quizzes.cio.com/impact_quiz/ </li></ul><ul><li>CIO Executive Council & Future-State CIO Program http://www.cioexecutivecouncil.com </li></ul><ul><li>Egon Zehnder International http:// www.egonzehnder.com/ </li></ul>
Survey Methodology and Respondent Profile <ul><li>Conducted online across a sample of senior IT executives from the CIO audience database. The survey was also sent to the 2007 State of the CIO survey respondents. </li></ul><ul><li>Respondents: 558 heads of IT. </li></ul><ul><li>64% hold a CIO/CTO title; 21% general manager/managing director/director IT; 11% EVP/SVP/VP (w/out CIO) and 4% other. </li></ul><ul><li>90% are responsible for enterprise-wide IT decisions and 10% for divisional IT decisions. </li></ul><ul><li>Company size defined by revenue: Small: <$100 million; Mid-size: $100 million - $999.9 million; Large: $1 billion or more. </li></ul><ul><li>Broad range of industries represented including manufacturing (12%), medical/healthcare (10%), wholesale/retailer/distributor (9%), education/nonprofit (9%), finance/banking/accounting (9%), government (9%). </li></ul><ul><li>Margin of error: +/- 4.1%. Percents may not sum to 100 due to rounding. </li></ul>