Chapter 4 The Role of the CIO

1. Chapter 4The Role of the CIO Managing the Information Technology Resource Paula Goulding ICT622

2. 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 ICT622

3. 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 ICT622

4. 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 ICT622

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6. Distributed Era of CIO Roles • Four Roles Emerged from Distributed Era • Organizational Designer • Strategic Partner • Technology Architect • Informed Buyer ICT622

7. Web-Based Era • CIO has new responsibilties • Role includes suppliers and customers • New roles are added to CIO ICT622

8. 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 ICT622

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10. Current View of the CIO • Highly mobile – high turnover • Must deliver effectively and rapidly • Well-rounded • Technically astute • People-oriented • Business skills ICT622

11. 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 ICT622

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14. 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 ICT622

15. 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 ICT622

16. 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 ICT622

17. 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 ICT622

18. Organizational Attributes • Personal/informal executive style • Executive workshops on strategic issues • CIO accepted in executive team ICT622

19. CEO Fit for Information Age ICT622

20. 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 CEO Must Believe in IT Importance ICT622

21. Leadership Expertise in aligning and leveraging Business savvy Relationship skills Management skills Communication skills Ability to create and manage change Knowledge and experience in specific industry International experience Ability to hire, develop, and retain quality IT professionals Top 10 CIO Requirements ICT622

22. 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 ICT622

23. 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 ICT622

24. IT Managerial Skill Mix ICT622

25. 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 ICT622

26. 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 ICT622

27. 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 ICT622

28. 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 ICT622

29. 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 ICT622

30. Leaders vs. Managers ICT622

31. 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 ICT622

32. Critical IT Management Processes • Setting strategic direction • Establishing infrastructure systems • Scanning technology • Transferring technology • Developing business systems ICT622

33. 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 ICT622

34. 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 ICT622

35. 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 ICT622