Transcript Slide 1
Chapter 4
The Role of the CIO
Managing the Information
Technology Resource
Paula Goulding
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Chapter Outline
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
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
Highly mobile – high turnover
Must deliver effectively and rapidly
Well-rounded
Technically astute
People-oriented
Business skills
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Concerns of CIOs
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
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
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
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
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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