Transcript Slide 1

Chapter 4
The Role of the CIO
Managing the Information
Technology Resource
Paula Goulding
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Chapter Outline
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Role of the Chief Information Officer
How role has changed over time
Key characteristics of effective CIOs
Relationship of the CIO to the need for
alignment
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Synott’s Definition of CIO
 Manage information resources as vital
corporate asset
 Bring systems into competitive marketplace
 Manage and coordinate increasingly
decentralized information resources
 Manage end-user computing so that it serves
corporation's needs
 Be a catalyst for corporate change
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Evolution of CIO
 Term coined in 1980s and continues to
change over time
 Viewed as a strategist, not a manager
 Leadership is key
 Influence of CIO on forces determines
effectiveness of CIO
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Distributed Era of CIO Roles
 Four Roles Emerged from Distributed Era
– Organizational Designer
– Strategic Partner
– Technology Architect
– Informed Buyer
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Web-Based Era
 CIO has new responsibilties
 Role includes suppliers and customers
 New roles are added to CIO
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CIO’s Resume Today
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Knowledge of applying IT to business
Visionary leader
Relationship manager
Marketer
Open systems-oriented
20 years in LOB management jobs
French, German, Japanese
Masters, Harvard Business
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Current View of the CIO
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Highly mobile – high turnover
Must deliver effectively and rapidly
Well-rounded
Technically astute
People-oriented
Business skills
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Concerns of CIOs
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94% Enhancing customer satisfaction
92% Security
89% Technology evaluation
87% Budgeting
83% Staffing
66% ROI analysis
64% Building new equipment
45% Outsourcing hosting
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How CIO Affects Value of IT
 Focus on business needs as they relate to
IT organization
 Educator to business executives
 Demonstrate importance of IT
 Foster greater interaction
 Communicate successes and value of IT
 Good understanding of business vision
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Global CIO
 Must deal with factors from other nations
 Education and experience in dealing with
people of other nationalities and cultures
 Knowledgeable about cultural differences
 Knowledgeable about geography and
history
 Effectively deal with language differences
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CIO Attributes
– Analyst background and orientation
– Promote IT as agent of business
transformation
– Contributes beyond IT function
– Accurate perception of CEO views on
business and IT
– Integrates IT with business planning
– Profile stresses consultative leadership
and creativity
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CEO Attributes
 General management and/or marketing
background
 Change-oriented leadership
 Attended IT “awareness” seminars
 Experience IT project success
 Perceives IT as critical to the business
 Positions IT as agent of business
transformation
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Organizational Attributes
 Personal/informal executive style
 Executive workshops on strategic issues
 CIO accepted in executive team
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CEO Fit for Information Age
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CEO Must Believe in IT Importance
 Creating context
 Setting priorities
 Signaling
continuously and
positively
 Spending quality
time
 Relating with CIO
 Scan and understand
new technologies
 Working on vision of the
Future
 Sponsoring internal and
external architectures
 Embedding information
management processes
 Challenging IT’s supply
side
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Top 10 CIO Requirements
1. Leadership
2. Expertise in aligning
and leveraging
3. Business savvy
4. Relationship skills
5. Management skills
6. Communication
skills
7. Ability to create and
manage change
8. Knowledge and
experience in specific
industry
9. International experience
10.Ability to hire, develop,
and retain quality IT
professionals
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The Effective CIO
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Delegation of Operational Tasks
Seize Expenditure/Financial Authority
Avoid Adversarial Positions
Initiate Contacts Outside the Information
Technology Unit
– Create relationships with business peers
 Use Language Carefully
– Avoid use of technology jargon
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Feeny’s Characteristics of “Ideal” CIO
 Honesty, Integrity, Sincerity, Openness
 Business Perspective, Motivation, Language
 Communicator, Educator, Motivator, Leader,
Politician, Relationship Builder
 Continuously Informed on Developments in IT,
Able to Interpret their Significance to Business
 Change-Oriented Team Play, Catalyst to
Business Thinking
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IT Managerial Skill Mix
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What Makes a Manager?
 Information Processing Roles
– Disseminator
 Interpret and edit before passing along
– Monitor
 Analyze information available to ascertain
problems
 Stay informed of activities outside subunit
– Spokesperson
 Source of information about subunit
 Sell capabilities and value of organization
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What Makes a Manager?
 Decision-Making Roles
– Entrepreneur
 Ability to change design of unit structure
– Disturbance Handler
 Deal with conflict and crises
– Resource Allocator
 Control resources with organization
– Negotiator
 Negotiate commitments
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What Makes a Manager?
 Interpersonal Roles
– Liaison
 Maintain relationships with other units
– Figurehead
–Formal obligations that come with
managerial title
– Leader
 Includes human resources activities
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What Makes a Leader?
 Broad business and organizational
knowledge
 Broad set of relationships in firm and
industry
 Excellent reputation and strong track record
 Keen mind and strong interpersonal skills
 High integrity and personal values
 High level of motivation
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Characteristics of Effective Leadership
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Has willing followers
Relationship between leaders and followers
Leadership occurs as an event
Use influence beyond formal authority
Operate outside boundaries of defined procedures
Involves risks and uncertainty
Not everyone will follow leader’s initiative
Consciousness creates leadership
Is a self-referral process
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Leaders vs. Managers
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Organizational Role Changes of CIO
 Networking resources to exchange
information
 Share data elements among business
units/external firms
 Apply common application systems across
the firm
 Requirements for specialized IT human
resources
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Critical IT Management Processes
 Setting strategic direction
 Establishing infrastructure systems
 Scanning technology
 Transferring technology
 Developing business systems
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Functional Changes in Role of CIO
 Focus on Strategist role
 At the center of operations for strategy
pertaining to technology
 Implementation of strategies pertaining to
technology
 Technology executive acting as counselor to
business executives
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Tips for New CIO
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Get a seat at the table
One-to-one communications with CEO
Partnership with peers
Study corporate culture
Understand business model
Define current commitments
Establish credibility through small things
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Tips for New CIO
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Build personal board of directors
Listen and talk
Be accessible and responsive
Set realistic goals
Take inventory
Assess your people
Understand value and threat of outsourcing
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