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The Role of a CIO

The Role of a CIO. November 9, 2001 Trey Baxter Lisa Weingart Rick White. CIO Mission.

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The Role of a CIO

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  1. The Role of a CIO November 9, 2001 Trey Baxter Lisa Weingart Rick White

  2. CIO Mission • To provide technology vision and leadership for developing and implementing IT initiatives that create and maintain leadership for the enterprise in a constantly changing and intensely competitive marketplace. Gartner Group Inc, Mission of the CIO http://www.cio.com/research/executive/edit/gartner_description.html

  3. Presentation Overview • CIO Interviews • The CIO position • What’s next? • Compensation

  4. CIO Interviews • SSM Healthcare • Monsanto • Rohm and Haas

  5. SSM Health Care: Overview • One of the Largest Catholic Health Care Systems • Owns, operates, & manages 19 acute care hospitals • Located in Missouri, Illinois, Wisconsin, & Oklahoma • 20,000 employees • 5000 affiliated physicians http://www.ssmhc.com/internet/home/ssmcorp.nsf

  6. SSM Health Care: CIO • Tom Langston, President and CIO of SSM Information Center • B.S., Business, UMSL • MBA, Finance, SLU • Former Corporate Vice President – Employee Benefits • 20 years at SSM • 6 months as SSM’s first CIO Interview with Tom Langston, October 31, 2001

  7. SSM: Organization Prior to 2001 Interview with Tom Langston, October 31, 2001

  8. SSM: OrganizationCurrent Interview with Tom Langston, October 31, 2001

  9. SSM: CIO Background • Corporate Director then VP of Employee Benefits • Systems oriented nature of Benefits Administration • Had a need, taught self software (dBase, Approach) • Built benefits system • Recognized as a power user/expert by system leadership and IS • Established reputation and relationships with senior management via benefits, pension committees etc. Interview with Tom Langston, October 31, 2001

  10. SSM: CIOSelection Attributes • Proven leadership skills • Credible reputation • Political Savvy • Strong Relationships with senior management • Enough of a technical background to know what's going on without getting into programming or systems details Interview with Tom Langston, October 31, 2001

  11. SSM: Role Perception • Provide guidance to Innsbrook Group (the Board) in developing IS Strategy • Ensure that projects undertaken by IS are consistent with corporate strategy • Advocate for IS initiatives at Capital Allocation • Ensuring IS infrastructure functions 100 percent of the time • Establish an IS environment in which the Entities (Hospitals, etc.) can obtain the functionality they need to run their businesses • Get out in front of IS customers and COMMUNICATE • Gather IS issues from Information Management Committee “Listening Posts” throughout the organization • Responsibility to put his weight behind critical strategic issues Interview with Tom Langston, October 31, 2001

  12. SSM: CIO Challenges • Changing the perception of IS from that of a cost center to that of adding value • generate excitement around IS capability • Ensuring that Infrastructure functions ALL the time • Disaster Recovery • SAP ERP Roll out Interview with Tom Langston, October 31, 2001

  13. Monsanto Overview • Leading provider of agricultural products to farmers • Business in two segments • Agricultural productivity • Crop protection products, animal agriculture and environmental technologies • Seeds and genomics • Consist of the global seeds and related traits business and genetic technology platform • 14,000 people around the world • Worldwide Locations • Africa, Asia, Australia, Canada, Caribbean, Central America, Europe, South America, United States www.monsanto.com

  14. Monsanto CIO • Janet M. Holloway, CIO of Monsanto • B.S. degree in Mathematics, Augusta College. • M.S. degree in Computer Science, Washington University in St. Louis. • 18 years at Monsanto • Approximately 2 years Monsanto CIO Interview with Janet Holloway, November 1, 2001

  15. Monsanto: CIO Background • Co-Lead, Information Technology, Monsanto Agriculture • Director, Information Technology, Monsanto Crop Protection • Manager, Information Technology, Monsanto Agriculture • Manager, Information Technology, Monsanto Ag New Products Division • Senior Group Leader, Monsanto Research Center User Support • Group Leader, Monsanto Research Center Application Development • Senior Programmer Analyst, Monsanto Research Center Lab Automation • Staff Research Associate, Washington University Interview with Janet Holloway, November 1, 2001

  16. Monsanto: CIO Keys to Success • Hard work! • Get involved in projects and issues. • “Stay low and do not fly too high”. • Focus on people and results • Align with business priorities. Interview with Janet Holloway, November 1, 2001

  17. Monsanto: Role Perception • Business Oriented more then technical oriented • Good Communicator – bridge the gap between business and technology • Flexible – technology matches business needs. • Involved in Enterprise • Effective leadership • Insight – ability to convert experiences • Work under authority, not power… earn it Interview with Janet Holloway, November 1, 2001

  18. Monsanto: CIO Overview • CIO day • Planned out… with meeting and work sessions • What keeps Jan up at night? • Currently… • Achieving budget targets for 2002 • Keeping up with technology • Security of our systems and environment • Presently we are redesigning our Infrastructure and I want that to go smoothly Interview with Janet Holloway, November 1, 2001

  19. Monsanto: CIO Challenges •  Budget / cost management • Looking out for the people and developing them • Keeping up with technology

  20. Rohm and Haas: Overview One of the world’s top specialty chemical companies, with sales of approximately $7 Billion, nearly 140 manufacturing and research locations in 27 countries and more than 18,000 employees. Interview with Anne Wilms, November 5, 2001

  21. Rohm and Haas: CIO Anne Wilms Vice President and Chief Information Officer since December 1st, 1999

  22. Rohm and Haas: CIO Background • Vice President and CIO of Sonat Inc. • Oracle Corporation • Director of Information Systems at Wisconsin Power and Light • Executive Management Development Program at University of Chicago Graduate School of Business in 1993 • Computer Program at Trinity College Dublin, Ireland 1979 Interview with Anne Wilms, November 5, 2001

  23. Rohm and Haas: Daily Activities • Breakfast meetings • More meetings • Videoconferencing Interview with Anne Wilms, November 5, 2001

  24. Rohm and Haas: Challenges • Add value • Positive impact • Motivate IT division • Evolve rapidly • IT Literacy of business people Interview with Anne Wilms, November 5, 2001

  25. Rohm and Haas: Latest tech and trends • Networking • Committee’s • Gartner and AMR • Internet independent analysis • Ask others and verify Interview with Anne Wilms, November 5, 2001

  26. Rohm and Haas: Future • Change agent • Develop e-capability • Transformation • SAP rollout • IT Literacy of business people Interview with Anne Wilms, November 5, 2001

  27. Rohm and Haas: Committees Currently: • Villanova CIO Advisory Committee • St Joseph Previously • Advisory committee for the school of engineering at Vanderbilt University • Member of MIS Forum at the University of Alabama at Tuscaloosa Interview with Anne Wilms, November 5, 2001

  28. Rohm and Haas: Success strategies • Business Focused • Right team of people • Good listener • Creative solutions • Change Agent Interview with Anne Wilms, November 5, 2001

  29. The CIO Position • Responsibilities • Reporting Relationship • Changing Role • Current Role • Interaction with CEO • The Model CIO • Top Ten Qualities of a 21st Century CIO • Ethics

  30. Have you ever thought of being a CIO?

  31. CIO Responsibilities • Business technology planning process • Applications development • IT infrastructure and architecture (e.g., computers and networks) • Sourcing • Partnerships • Technology transfer • Customer satisfaction • Training Gartner Group Inc, Mission of the CIO http://www.cio.com/research/executive/edit/gartner_description.html

  32. CIO Reporting Relationship • Reports to a senior functional executive (EVP, COO, CFO) or CEO • Key management position • Responsible for IT policy • Aligning IT strategy with business strategies • Typical title is Vice President and Chief Information Officer (CIO) • Location is company headquarters. Gartner Group Inc, Mission of the CIO http://www.cio.com/research/executive/edit/gartner_description.html

  33. How do you think the CIO role has changed in the last 3 – 5 years?

  34. Changing Role of a CIO In May for a roundtable discussion at Giga Information Group's IT Forum 2001 in Las Vegas, 7 CIOs discussed, “ Where was the role of the CIO three to five years ago? What's going on now?” Below are some quotes from this conversation: • “Sometimes when you see the qualification demands of the CIO today, you wonder if even God would qualify“ • “Expert technical knowledge is a given, but in addition, now CIOs have to initiate organizational strategy before the CEO or other business leaders come to them.” • “…most of the roles and responsibilities have been focusing more towards a business sense. We're still seeing CIOs that are business people, but they also have a technology background” The CIO, Michael Goldberg -The CIO - Past and Future – May 2001 http://www.cio.com/research/executive/edit/061301_roundtable.html

  35. Changing Role of a CIO(continued) • “Three to five years ago, a CIO was more back office.” • “…they have to be strong leaders who inspire a loyal team of talented players who make their companies run.” • “CIOs have to initiate organizational strategy before the CEO or other business leaders come to them” • “No more order taking” • “I think across the board three or five years ago, most IT organizations and CIOs were expected to deliver the technology that enabled the business to perform the basics of business functions.” • “If you asked what were we doing 10 years ago, we were probably pursuing the business to adopt technology, trying to teach IT. But three to five years ago, I think the business learned that technology was critical if we were going to meet our business objectives, if we were going to really stay in business.” The CIO, Michael Goldberg -The CIO - Past and Future – May 2001 http://www.cio.com/research/executive/edit/061301_roundtable.html

  36. The Current CIO Role • Source: "The Changing Role of the Chief Information Officer“ • Korn/Ferry conducted 340 telephone interviews of CIOs: 150 from the United States, 70 from the United Kingdom, 70 from Germany and 50 from France. • Given these changes, the survey found that a CIO's ideal resume; should include both technical/engineering training and a solid background in finance, marketing and strategic planning. eWEEK, Aileen Crowley -The role of CIO is changing from techie to visionary- December 16, 1998 http://techupdate.zdnet.com/techupdate/stories/main/0,14179,376728,00.html

  37. Interaction with CEO • In CIO Magazine “Ask the Expert” the following question was asked: • Q. What do you believe is changing or has changed about what CEOs want of CIOs these days? • Reply: • great leader • business person • strategic thinker. • contribute to the organization beyond the domain of IS • to think in cross-functional terms, to see the big picture • problem-solve across the organization • great communicators • CEO's also want their CIO's to work long hours, travel globally, be great role models, be physically and mentally fit, and be true team players. Source: "The Changing Role of the Chief Information Officer“ CIO, Beverly Lieberman –Ask the Expert- August 6, 2001 http://www2.cio.com/expert/2001/ questions/question606.html

  38. Vision Builder Change master Relationship Builder Deliverer Alliance Manager Re-architect Politician Reformer The Model CIO Mastering Information Management - “Change isn’t optional for today’s CIO” Michael Earl, professor of information management at London Business School – 69 - 72

  39. Top Ten Qualities of a 21st Century CIO 10. Ability to hire, develop and retain high-quality IT professionals 9. International or global experience 8. Knowledge of and experience in a specific industry 7. Ability to create and manage change 6. Communication skills 5. Management skills 4. Relationship skills 3. Business savvy 2. Expertise in aligning and leveraging technology for the advantage of the enterprise 1. Leadership. CIO, Mark Polansky. THE CIO TOP TEN – September 15, 2001 http://www.cio.com/archive/091501/career.html

  40. CIO Ethics • CIOs usually do not act unethically, even though the opportunity exists Source: Scott J. Vitell and Donald I. Davis, “Ethical Beliefs of MIS Professionals: The Frequency and Opportunity for Unethical Behavior,” Journal of Business Ethics 9 (1990). Taken from Mangement Information Systems textbook by Raymond MacLeod, Jr, 1998 page 119

  41. What’s the next career move for a CIO?

  42. What’s Next For a CIO? • Many CIOs become CEOs • April 1999 Thomas L. Thomas leaves his CIO post at 3Com Corp. to take over as chairman and CEO of CRM developer Vantive Corp. • July 1999 After a stint as COO, former Compaq Computer Corp. CIO Michael D. Capellas takes over as its president and CEO. • August 1999 Louis Burns, Intel Corp.'s director of IT, is promoted to general manager of the company's new platform components group, which designs processors and chip sets. CIO Magazine, Trail to the Chief – David Pearson - Aug 1999 http://www.cio.com/archive/080199_ceo.html

  43. How much do you think a CIO gets paid?

  44. CIO Compensation • Janco Associates' MIS 2001 Compensation Study Compensation for the "best of breed" MIS executives: • $434,416 for large companies (revenues over $500MM) • $490,559 for medium sized companies (revenues less than $500MM). • Janco Associates' MIS 2001 Compensation Study • LARGE COMPANIES: • ORGANIZATIONS RESPONDING 463 • TOTAL POPULATION: 21,456 • MID-SIZE COMPANIES: • ORGANIZATIONS RESPONDING 527 • TOTAL POPULATION: 17,626 Janco Associates'; Press Release - January 15, 2000 http://www.ejobdescription.com/SalarySurvey.htm

  45. Now do you want to be a CIO?

  46. Questions

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